District of Columbia Office Market
The District of Columbia experienced 210,488 SF of positive net absorption during Q2 2024. The vacancy rate remained steady quarter-over-quarter at 20.3% and increased 140 basis points year-over-year. The District of Columbia’s development pipeline remains historically low, with only one delivery during Q2 2024 being 17XM. The sole property under construction in the district is 600 Fifth, a 400,000-square-foot office building in the East End. Overall, asking rents increased slightly midway through 2024. Class A rents were the cause of this, as they increased 0.4% quarter-over-quarter, while Class B rents increased 0.1% quarter-over-quarter. The longer-term trend, however, shows that both Class A and Class B rents have remained relatively flat since 2019.
Download District of Columbia Office Market Report 2Q24