Washington, D.C., Industrial Market Report
Fundamentals Withstand Health Crisis Shock;
New and Existing Space Being Actively Leased
Tenants continue to fill industrial space across the Beltway. Despite the health crisis, industrial properties in Washington, D.C., performed modestly better in 2020 than the year before. Space absorption largely kept pace with increased construction activity to keep vacancy unchanged year over year. The measure has since tightened, down 20 basis points to 5.9 percent in March, well below levels recorded following the previous recession. Rent growth also accelerated last year after a modest dip in 2019. The surge in e-commerce spending as well as disrupted supply chains have underscored the need for industrial space in the market, sustaining new leasing activity. Besides Amazon, which has occupied over 1.3 million square feet so far this year, other firms committing to large floor plans include Costco, Volkswagen and transportation company A&A Transfer.