District of Columbia Office Market Report - 4Q16

StartFragmentThe District of Columbia's office market conditions tightened steadily during 2016. Absorption was positive, but vacancy remained flat, as new deliveries countered the modest uptick in demand. Net absorption registered 236,554 square feet during the fourth quarter, bringing the year-to-date total to 1.1 million square feet. Despite positive net demand, the vacancy rate rose 20 basis points during the fourth quarter to 11.5%, a result of three new properties delivering. However, vacancy is still down 10 basis points from one year ago. Asking rental rates rose 2.7% over the past year, to $52.79/SF. Although demand has remained modest, the significant pace of redevelopment, renovations and new construction in the District has pushed asking rents higher.EndFragment

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