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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.

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