District of Columbia Office Market
|Average Asking Rent (Price/SF)|| $57.37|
|Vacancy Rate (%)|| 15.7%|
|Net Absorption (SF)|| -418,696|
The District of Columbia’s office market continued softening in the first quarter of 2021. Although market activity modestly rebounded in the fourth quarter, the recovery’s momentum stalled in the new year. Net absorption registered -418,696 square feet during the first quarter of 2021. Slow leasing activity over the last 12 months has limited opportunities for occupancy gains. Vacancy continued to rise steadily during the first quarter, reaching 15.7%, a 50-basis-point increase from the fourth quarter and a 120-basis-point increase from a year ago. Asking rents declined in the first quarter to $57.37/SF, which offset the 12-cent gain measured in the fourth quarter of 2020.