Washington, DC

No supply problem for Downtown DC office developers

Office Market Analysis

Under construction/renovation

Source: Jones Lang LaSalle

Restrained new construction and high levels of preleasing have helped ensure the stability of market dynamics in Downtown Washington, DC. Underscoring the observation that there is no supply problem, just a demand problem, current levels of new construction are two-thirds below long-term averages. Brisk preleasing activity has resulted in Washington, DC office projects under construction/renovation with delivery expected through year-end 2013 being already 59.9 percent committed. The rate of preleasing activity in the core CBD and East End submarkets is even stronger, with the largest gaps falling within the emerging submarket of NoMa, where 623,817 square feet is under construction and devoid of any prelease commitments.