Q1 2020 District of Columbia Market Report

Office market fundamentals in the District of Columbia (DC) continued to cool in the first quarter of 2020. Though quarterly occupancy gains had been consistently large from mid-2016 to mid-2019, slow leasing has led to slack in the market. Further hampering momentum has been the rapid emergence of COVID-19. The impacts of the pandemic on the region’s economy and real estate markets are uncertain; however, it is anticipated that COVID-19 will cause near-term market deceleration. Given mandated social distancing measures, business closures, and suspensions of large gatherings, business activity will grind to a halt in Q2. Although COVID-19 will likely be the most influential economic event of 2020, this report will focus primarily on the real estate and market activities before the onset of COVID-19.