Northern Virginia Office Market Report
Net absorption for the region totaled negative 1.0 million square feet during Q2 2024, with the negative absorption spread out among many submarkets. Overall vacancy expanded to 22.9%, up 80 bps quarter-over-quarter and 180 bps year-over-year. Availability also expanded, ending Q2 2024 at 27.4%, an increase of 160 bps quarter-over-quarter and 120 bps year-over-year. Major second-quarter transactions were spread throughout the region, with the largest deal in Fairfax Center, the second and third largest deals occurring in Rt. 28 South, and the fourth largest deal occurring in Ballston. Furthermore, renewals were a theme of Q2 2024, with the four largest deals being lease renewals. Rents have taken a step back during the first half of 2024, ending Q2 2024 at $35.27, a decrease of 0.7% since the end of 2023. After two deliveries totaling 467,000 SF during the quarter, the office construction pipeline ended Q2 2024 at three properties totaling 608,000 SF.
Download Northern Virginia Office Market Report 2Q24