District of Columbia Office Market
| Average Asking Rent (Price/SF) | $57.43 |
| Vacancy Rate (%) | 16.6% |
| Net Absorption (SF) | -836,866 |
The District of Columbia’s office market fundamentals continued to soften in the second quarter, despite the region’s slowly accelerating economic and public health recovery. Net absorption registered -836,866 square feet during second-quarter 2021. Occupancy losses were predictably pronounced due to the move of the U.S. Citizenship and Immigration Services (CIS), which relocated to Maryland. Vacancy rose in the second quarter, reaching 16.6%, a 70-basis-point increase from the first quarter and a 180-basis-point increase from one year ago. The average asking rent rose in the second quarter to $57.43/SF but remains $0.09 below second-quarter 2020 rents. Asking rents have held relatively steady despite the uncertainty of the past year. Effective rents will remain under downward pressure, as elevated vacancy yields generous concession packages for tenants in the market for new space.
Download District of Columbia Office Market Report 2Q21