WASHINGTON, DC–Despite a bump in leasing volume in the fourth quarter, the District recorded a negative net absorption for 2016 of 51,800 square feet, according to CBRE's tally for the city. CBRE's Research Director Revathi Greenwood attributes this to a weakened rate of leasing velocity that was down by 31% compared to the ten-year average of 10.3 million square feet.
It should be noted here that DC's trophy office market was the exception. These buildings posted 829,000 square feet of positive net absorption in 2016, Greenwood tells GlobeSt.com.
By contrast, class B buildings had 823,000 square feet of negative net absorption as several large tenants moved into higher quality space including the Department of Homeland Security Office of the Inspector General, the Federal Election Commission and Amtrak. The East End continues to be hard hit. Although it accounted for the most leasing activity in 2016, it has been the largest contributor of negative net absorption.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
