Northern Virginia Office Market Report
- Negative absorption continues to pile on, as the market experienced 185,000 square feet of negative net absorption during the quarter. This marks the third straight quarter of negative net absorption, creating a total of almost 1.3 million square feet of negative net absorption during 2023.
- Vacancy and rents both increased year-over-year. Vacancy increased 50 basis points to a historical high of 21.3%. Average asking rents ended the quarter near the all-time high at $35.34 per square foot, up $0.39 year-over-year, although down $0.14 quarter-over-quarter.
- There were five properties totaling 1.1 million square feet under construction to end Q3 2023. This marked the fourth consecutive quarter with no new buildings delivering or breaking ground.