Washington, DC office market reports

Q4 2022

The Washington, DC office market has experienced some changes since the end of 2021. Office visitor volumes the week of December 19, 2022 were 37.4% relative to the week before lockdown on March 15, 2020, according to Avison Young's Vitality Index. The vacancy rate in DC office buildings is currently 16.7%, an increase from 15% at the end of 2021. There is currently 1.78 million square feet of space under construction or renovation in DC, the lowest amount since 2014 due to suppressed demand from tenants. The sublease market has also seen an increase, with 3.46 million square feet currently available. The availability rate in DC office buildings has also increased to 21.3%, up from 19.8% at the end of 2021. This difference between vacancy and availability may be due to pending move-outs, where tenants are choosing to take up less space or leave their offices altogether. Office sales volume in 2022 was $2.14 billion, a decrease from the previous year's $2.71 billion. In the same period, cap rates have increased from an average of 5.4% to 5.8%.
37.4%

Office visitor volume

Office visitor volumes the week of December 19, 2022, relative to the week before the lockdown (March 15, 2020). this is measured using Avison Young's Vitality Index.
16.7%

Vacancy rate

The vacancy rate in DC office buildings is up from 15% as of year-end 2021.
1.78 msf

Development activity

With suppressed demand, developers have been apprehensive to construct new office product. This represents the lowers amount of space in the pipeline since 2014.
3.46 msf

Sublease availability

The current amount of space on the sublease market is up from 3.23mm sf as of year-end 2021.
21.3%

Office availability

The availability rate in DC office buildings is up from 19.8% as of year-end 2021. This delta between vacancy and availability signals many pending move-outs, where tenants have elected to take less space or shed offices altogether. 
$2.14 b

Investment sales

2022 office sales volume is down from $2.71 b in 2021. In the same period, cap rates have increased 400 bps from 5.4% to 5.8% on average.
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Get in-depth office market reports and insights from commercial real estate experts in the Washington DC Metro area. Avison Young advisors look at Washington, DC commercial real estate activities and the latest Washington, DC statistics to provide you expert market research on Washington DC's office properties.

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