Search
 

The East End is On the Wrong Side of DC's Current Leasing Cycle

WASHINGTON, DC—There were two significant leases signed in the submarket in Q4 but neither added to absorption.

By Erika Morphy | Updated on January 06, 2016

WASHINGTON, DC–The East End closed 2015 with 246,976-square feet of negative absorption for the year, according to DTZ’s fourth quarter market report for the District. This quarter’s poor showing was mainly due to Arnold & Porter’s move to the newly delivered 601 Massachusetts Avenue, NW.

However, fundamentals in the East End have put the submarket on the wrong side of this cycle’s leasing trends in DC. For instance, DTZ notes that rising asking rents are beginning to price out many government tenants from both the CBD and East End markets. However, it said, this trend has “hit the East End particularly hard” as two of the largest leases of the fourth quarter resulting in the East End losing federal tenants to emerging and non-core submarkets.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.