Q3 2021 District of Columbia Market Report
As COVID cases slow with increased rates of vaccination, businesses have begun to return to the office. Despite the increased return of occupiers, market fundamentals continue to face shocks five quarters into the COVID-pandemic. With vacancy hitting an all-time high at 16.7%, a trend expected to continue, market fundamentals will continue to soften. District of Columbia continued a downward trend to $57.73/SF, continuing negative growth, down $0.27/SF from year-ago levels. Previously frozen in previous quarters, Leasing activity has begun picking up, though still lagged 20% behind pre-COVID levels. Though many continue to feel uncertainty and trepidation encompassing the market, decreasing COVID rates and increasing vaccinations continue to garner optimism surrounding return-to-work guidelines. As the Fall of 2021 approaches, this optimism, and office occupancies are expected to grow, bringing momentum and increasing market activity.