GSA Slowdown Affects DC Vacancy Rates

WASHINGTON, DC-Government leasing activity–one of the mainstays of DC’s commercial real estate community–slowed down in the fourth quarter, causing vacancy rates to rise. The rise itself–a 0.4% increase to 6.5%, according to GVA Advantis figures–is still slight. However, the trend is worrisome especially as it is widely assumed that the government is not likely to abandon its fiscal restraint until at least after the presidential elections.

There were other contributing factors to the vacancy rate rise, which at Q3 was hovering at 6.1%, according to Tonya Ginter, director of research and marketing for GVA Advantis. The government pullback, though, is one of the biggest factors, she tells GlobeSt.com. “This has been happening for the last six months but we saw it much more so in fourth quarter. There just isn’t the same level of government spending on leasing activity as there was six months ago.”