WASHINGTON, DC–Savills Studley reports that at the end of the third quarter, overall availability in the District increased to 14.2% — its highest point in the last eight quarters. At the same time, as we all know, construction activity is at a peak, with the largest amount of space currently under construction since 2009.
Savills Studley takes a look at how this situation will continue to unfold in its latest MarketView.
In total, 8.4 million square feet of newly constructed or redeveloped space is anticipated to deliver by the end of 2019 alone. This includes 3.6 million square feet next year in 2018 with such projects as 2112 Pennsylvania Ave., NW, Alexander Court and 655 New York Ave., NW.
An additional 2.5 million square feet is planned for 2019, including 1301 Pennsylvania Ave., NW and 1900 N St. NW, among others. Of this 8.4 million square, 54% in total has already been spoken for, report author Sarah Dreyer writes.
Her takeaway — with a significant number of these developments being redevelopments, the overall net new impact on office inventory is 5.7 million of additional space. She writes:
New construction is certainly a top option amongst larger tenants seeking greater efficiencies and quality, but with 46% of development unleased, we can expect to see availability continue to climb in the near future.
WASHINGTON, DC–Savills Studley reports that at the end of the third quarter, overall availability in the District increased to 14.2% — its highest point in the last eight quarters. At the same time, as we all know, construction activity is at a peak, with the largest amount of space currently under construction since 2009.
Savills Studley takes a look at how this situation will continue to unfold in its latest MarketView.
In total, 8.4 million square feet of newly constructed or redeveloped space is anticipated to deliver by the end of 2019 alone. This includes 3.6 million square feet next year in 2018 with such projects as 2112 Pennsylvania Ave., NW, Alexander Court and 655
An additional 2.5 million square feet is planned for 2019, including 1301 Pennsylvania Ave., NW and 1900 N St. NW, among others. Of this 8.4 million square, 54% in total has already been spoken for, report author Sarah Dreyer writes.
Her takeaway — with a significant number of these developments being redevelopments, the overall net new impact on office inventory is 5.7 million of additional space. She writes:
New construction is certainly a top option amongst larger tenants seeking greater efficiencies and quality, but with 46% of development unleased, we can expect to see availability continue to climb in the near future.
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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.
