Washington, D.C., Office Market Report
Technology, Public Sectors a Guiding Hand Amid Near-Term Leasing and Supply Concerns
Traditionally strong office hubs face longer road to recovery. A year of ample uncertainty placed the market’s offices on softer footing entering 2021. Vacancy in major hubs such as Bethesda-Chevy Chase, Downtown D.C., and the Dulles Corridor all shot above 20 percent. Total available sublease space also increased over 30 percent from 2019. Moving forward, filling these floor plans will take time as the full extent and duration of remote working remains unclear. Many of the lower occupancy areas will also be compounded with new supply. Over 900,000 square feet will open around Capitol Hill in 2021, the most of any submarket. While several of these properties have leases in place, others are still in the process of securing tenants.