Non-Profits Most Stable of DC Asset Classes
It’s only sector to maintain the same leasing volume in the years before and after pandemic.
Non-profits dominate the Washington, D.C., commercial real estate scene with more than 1 million square feet of office space over 1,200 associations, according to a new report from JLL.
The firm calls the sector “the most stable leasing volume of all industry sectors in DC” as they accounted for almost 15% of DC’s lease volume in 2023.
Of the 16 sectors in DC, non-profits are the only sector to maintain around the same leasing volume in the years before and after the pandemic.
The typical non-profit reduced its office space between 2021-2023 but others boosted their space to offset footprint reductions in the sector.
Associations choose to be in DC because proximity to Capitol Hill is essential both for their mission and talent recruitment. Since 2021, 70% of leases signed by non-profits in DC were relocations.
“Advocacy is a core function for many of associations, and a DC presence improves ease of access to key decision-makers,” JLL said. “Additionally, DC’s large concentration of lawyers and federal employees are sources of talent for associations trying to fill critical president, legal affairs, and government relations roles.”
In total, there are 13,460 nonprofits in the DC region, making it the third largest industry in DC, after the Federal Government and law firms, according to association management firm Kellen.