Washington Metropolitan Area Office Market Report - 1Q17

The Washington area's office market tightened in the first quarter of 2017, with absorption positive in all three substate areas and rents and occupancy edging up. Net absorption for the metro area totaled 1,073,884 square feet, on par with 2016's annual absorption. With strong absorption and no new construction added to inventory, the region's vacancy rate ticked down 40 basis points from year-end 2016 to register 16.1%. Average weighted asking rents registered $36.89/SF as of the first quarter, an increase of 3.4% over the past year. This increase is largely attributable to two factors: (1) the

higher asking rents from several new projects that have come online over the past year; and (2) the uptick in demand over the past few quarters.

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