District of Columbia Market Report Q4 2019

The District of Columbia's (DC) office market exhibited stability in the fourth quarter (Q4) of 2019. Though occupancy was marginally negative in Q4, strong construction activity and large tenant renewals/relocations have been a point of encouragement for landlords. Net absorption was -77,843 SF in Q4, bringing the year-to-date total to 984,360 SF. A robust construction pipeline has supported occupancy growth, which has triggered several large-footprint relocations. New construction deliveries are also a contributing factor to DC's rising vacancy, which increased 150 basis points from year-ago levels to 13.9%.