Savills Studley Releases Washington, DC Q3 2016 Office Market Report

26 October 2016

Savills Studley, the leading global commercial real estate services company specializing in tenant representation, has released its 2016 Q3 Washington, DC edition of the Savills Studley Office Market Report.

The quarterly report is an in-depth compilation of office leasing statistics and trends, major transactions, submarket comparisons, employment trends and investment and development trends specific to the DC region.

According to Savills Studley Executive Vice President and Branch manager Tom Fulcher, despite continued growth in employment and office space-using jobs, tenants have a plethora of options due to the ongoing trend of companies choosing to right size or consolidate. Tenants remain firmly in the driver’s seat as they have no shortage of space options from which to choose and concession values remain at record-high levels,” he said.

Highlights from the 2016 Q3 Washington, DC Office Market Report include:

  • Concession packages remain high. Some organizations have received in excess of $200 per square foot in tenant improvement dollars and free rent 
  • The Q3 year-to-date leasing total decreased 37.1 percent, the lowest Q3 year-to-date leasing total since 2013
  • DC-area co-working gained momentum, despite the general slowdown. WeWork announced plans for a second Northern Virginia location and Regus leased 45,000 square feet in Rosslyn
  • Class A are rents are likely to fall. As the market becomes increasingly tenant friendly, landlords of Class A product are repositioning their buildings or sweetening the economics to the tenants who are out there

The 2016 Q3 Savills Studley Washington, DC Office Market Report, as well as a national report and reports for each of its 29 major U.S. markets, can be found on Savills Studley’s webpage.

 
 

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