According to the latest Transwestern research, the DC trophy office market has an inventory of 10.4M SF in 34 buildings and is only 8% of the District’s total office inventory. Law firms occupy 48% of all trophy space. The research reveals that this market performed well during the past decade, with positive net absorption and an annual 3% average gain in asking rents since 2005. Transwestern expects continued positive net absorption for 2015, which will be boosted by 824k SF of trophy product delivering this year at 59% leased.
Also expected is a continued demand for DC trophy office space, due to the flight to quality. This elevated demand will further lower the vacancy rate and limit the available space for prospective tenants. New construction will offer few options for demand as the pipeline is well pre-leased. Given this, conditions will turn to landlord favor. For more information on our Bisnow partner, click here.
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