District of Columbia Office Market
| Average Asking Rent (Price/SF) | $56.74 |
| Vacancy Rate (%) | 18.5% |
| Net Absorption (SF) | -252, 305 |
The District’s office market softened in the third quarter as market fundamentals continue to be heavily steered by slow leasing. Net absorption measured negative 252,305 square feet in the third quarter of 2022, its most negative level since third-quarter 2021. However, flight-to-quality trends continue to benefit Class A occupancy. In the third quarter, Class A net absorption measured 126,911 square feet, while Class B and C net absorption measured negative 379,216 square feet. Quarterly vacancy increased 20 basis points from second-quarter 2022 to 18.5%. The District’s construction pipeline, excluding renovations and owner-occupied developments, measured 580,083 square feet, unchanged from the prior quarter and at its lowest level in decades. Average asking rents in the third quarter of 2022 measured $56.74/SF, a $0.02 decrease from last quarter and a $0.17 decrease from one year ago.