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Lease Renewal Activity Surges in DC

WASHINGTON, DC-Tenants are worried about the economy, about the high costs of moving and of taking on the additional expense for a tenant build out.

By Erika Morphy | Updated on May 16, 2008

WASHINGTON, DC-Office tenants in the DC area are staying put, opting to make do with their existing space–or even sublet some of that space to save money. A new report by Jones Lang LaSalle finds that so far this year 42% of all lease transactions over 20,000 sf were renewals. Typically, this number is 27%.

“What is generally 800,000 sf per quarter in renewals was 1.2 million sf in Q1,” Scott Homa, research manager at JLL, tells GlobeSt.com.

The reasons are two-fold, he explains: “the rise in commodity prices means that the cost of building out from shell has increased since 2003 by 52%. Also, with the overall economy slowing, companies have become more conservative in estimating their space needs.”

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