Washington Metropolitan Area Office Market Report - 4Q16

The Washington area's office market had a strong finish to 2016, with fourth-quarter absorption positive in all three sub-state areas and rents and occupancy ticking up. Net absorption for the metro area totaled 821,180 square feet during the fourth quarter, bringing the annual absorption total to 1.5 million square feet. Despite positive absorption, more than 2 million square feet of new office space delivered in the region during 2016. As a result, the region's vacancy rate was essentially unchanged, declining only 10 basis points over the past year to 16.3%. At this elevated vacancy rate, the market remains tenant-favored. Average weighted asking rents registered $36.23/SF at the end of 2016, an increase of 1.8% over the past year.EndFragment

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