The coronavirus pandemic is continuing to hurt the office market in the nation’s capital, with demand for office shrinking, a host of sublease space becoming available and vacancy reaching another all-time high.
The available 11th-floor office space in the newly delivered 909 Rose building. Newly released Q3 data from multiple brokerage firms shows the D.C. office market experienced negative absorption and rising vacancy. The market is being hurt by a lack of new leasing activity as companies delay major decisions on their future office space needs.
“The economic hardship makes it difficult, and the uncertainty around when employees will return to the office, how many of them will return, and how their future office space should be reconfigured, all of that is raising a lot of questions,” CBRE Associate Director of Mid-Atlantic Research Wei Xie said. “Anybody who has the luxury of waiting a little longer is not in a hurry to make a decision.”
CBRE’s report found negative net absorption of 177K SF in the District, bringing the year-to-date occupancy loss to 780K SF. It pegged D.C.’s vacancy rate at 15.4%, a new record high for the market
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