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Market Report

Washington, D.C. Office Market Report

4Q 2022

Developers Remain Confident in D.C.'s Office
Market as Demand for Class A Space Surfaces

Flight-to-quality is evident. Firms absorbed a net of nearly 2.4 million square feet of office space during the past year ended in June. This recent activity indicates tenants are prioritizing higher-quality space, with Class A leasing accounting for more than 95 percent of net move-ins during this span. Both private and public sector organizations leased large blocks of space during the first half of 2022. The Department of Justice committed to 331,000 square feet at the Judiciary Center in the East End. Additionally, T-Mobile signed a lease totaling just over 200,000 square feet in Herndon, and Hughes Network Systems committed to occupying 140,000 square feet in Germantown. Looking ahead, investments from various local universities to bolster the technology talent pipeline should further increase demand for upper-tier space, as this may draw even more new or expanding tech tenants to the metro.
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