Northern Virginia office market reports

Q4 2022

Northern Virginia’s market will continue to see right sizing for office footprint in the coming years as there are many upcoming expirations in the coming years. While tenants approach expiration and look for what their office needs are, most of them will pivot to higher quality spaces, new product office space that offers amenities to their employees. This ‘flight-to-quality’ trend will strain the Class C and Class B office spaces, as there is approximately 9.2 million square feet of office space in Northern Virginia that is currently in the process of conversion or proposed to become residential properties. The upcoming recession with interest rate hikes can prove to make investments to office less attractive. While there is a strain to lower-class offices, industries that continue to grow in the Northern Virginia market include both commodity and defence government contracting, that will continue to require office space as there is a high demand for SCIF space and other important government contracting uses that can be expected to have a strong industry for the market.

Office visitor volume

Office visitor volume is 22.6% relative to the Labor Day 2019 volumes and is measured using Avison Young's Vitality Index. Please note, that this data is as of December 19, 2022.

Vacancy rate

The vacancy rate in Northern Virginia office buildings is up from 15.1% as of year-end 2019.
4.2 msf

Development activity

With suppressed office demand, developers have begun to pivot their previous office proposals and converting them into multifamily properties.
2.4 msf

Sublease availability

The current amount of sublease space on the sublease market is up from 2.1 msf as of year-end 2021.

Office availability

The availability rate in the Northern Virginia office building is up from 22.3% as of year-end 2021. The consistent uptick in vacancy and availability means there are many pending move-outs where tenants have elected to reduce their office footprint.
$2.12 b

Investment sales

2022 office sales volume is down from $3.45 b in 2021 as the already strained office market faces interest rate hikes for the foreseeable future to correct inflation. 

Your source for the latest Northern Virginia office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Washington, DC Metro area. Avison Young advisors look at Northern Virginia commercial real estate activities and the latest Northern Virginia statistics to provide you expert market research on Northern Virginia's office properties.

Explore different topics like the latest office market pricing trends and analysis of Northern Virginia's current office real estate market conditions. Gain a better understanding of Northern Virginia’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Northern Virginia's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Northern Virginia.

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