Office vacancy rates are heading toward the single digits in several DC submarkets, spurring landlords to increase rental rates.
According to PM Realty's Q3 DC office market report, the CBD continues to lead all submarkets in absorption over the prior 12 months, but the areas of Capitol Hill and NoMa are starting to rebound. (NoMa is rebounding in a big way after landing 839k SF of DoJ offices last week). After posting negative absorption in Q2, both submarkets rebounded into positive territory in Q3.
Building activity remains strong, with 3.8M SF of office space under construction. New construction and renovations continue to be influenced by the tech sector, which has been snapping up space in several different submarkets.
