Washington D.C. Office Real Estate Outlook:
Widespread footprint reductions have created an imbalance in supply and demand that will keep vacancy rates high in the near term. With 30.4 million sq. ft. of leases over 10,000 sq. ft. expiring in D.C. by 2027 and tenants downsizing by an average of 27% in 2022, further vacancy growth should be anticipated.
At the top of the market, tenants looking for Trophy office space will find fewer availabilities. Full-floor options are already limited within Trophy buildings, especially in the upper stack. Supply constraint in Trophy buildings could drive demand to D.C.’s top Class A properties.
Download the JLL Research quarterly insights report for analysis of Washington D.C. office real estate market conditions, and to learn more about economic activity impacting the outlook of the region.