Q3 2024 Washington DC Market Report

Despite solid overall leasing activity, the Washington, DC office market continues to face significant challenges in 2024, with net absorption remaining in negative territory.

Following negative 950K square feet of absorption in 2023, the DC market has already recorded net absorption of negative 810K square feet through the third quarter of 2024. Lack of organic tenant demand and entrenched hybrid work policies continue to hamper the leasing market, contributing to ongoing issues in occupancy rates.

Overall rental rates across the market have declined slightly to $59.49/SF, representing a 1.61% decrease over the last year. However, rental rates in Trophy Class buildings remain stable, typically coming at a 25%-30% premium over the rest of the market.

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