Preliminary numbers are in for the Washington DC Metro’s office market for the second quarter of 2014. In all three markets that comprise the region – The District of Columbia, Northern Virginia and Suburban Maryland, vacancy edged up, bringing us to 15.6% overall vacancy for the DC Metro region. This is up from 15.3% in the first quarter. 15.6% vacancy equates to 56 million square feet (msf) that remains empty. With this much vacant space, the advantage in lease negotiations will stay with tenants over landlords for the time being.
Net Absorption took a turn for the better in Northern Virginia and Suburban Maryland, registering net positive after both turned in negative stats for the first quarter. The District of Columbia, hampered by a few large move outs was negative again for the second quarter of 2014. Year to date net absorption for the metro region stands at about negative one million square feet.
Despite the lackluster stats, some bright spots remain on the horizon. After significant contraction in various job sectors through the first quarter of 2014, the second quarter’s job market appears to have turned the corner with two straight months of solid gains – including gains in private sector office-using employment. We expect this growth trend to accelerate through summer and into fall – conditions that will heat up the DC Metro office market.
Follow the link below and select “DC” from the dropdown menu for a breakdown of the second quarter 2014 leasing fundamentals by market.
For more Cassidy Turley market reports, visit http://www.cassidyturley.com/research/market-reports
By: Nathan Edwards
Director of Research, Cassidy Turley - Washington, D.C.
Email Nathan: Nathan.Edwards@cassidyturley.com
Follow Cassidy Turley on Twitter: @CassidyTurleyRE