Average Asking Rent (Price/SF)	$41.14
Vacancy Rate (%)	16.9%
Net Absorption (SF)	-1,333,620

The Washington metro area’s employment base continued its recovery during the fourth quarter of 2020 following the COVID-induced disruption sustained earlier in the year. However, office space demand in the Washington metro area was negative in each substate area during the fourth quarter and down significantly for the year overall. Market activity remained slow due to limited movement during the ongoing pandemic, which forced many tenants to continue remote work. Some tenants began returning to offices, but the rate of reboarding slowed and began to reverse as COVID-19 cases began to surge during the quarter. The region’s vacancy rate increased in the fourth quarter; asking rental rates saw increases as well but effective rents are under downward pressure and concessions are elevated.

District of Columbia Office Market

Average Asking Rent (Price/SF)	$57.49
Vacancy Rate (%)	15.3%
Net Absorption (SF)	-311,036

The District of Columbia’s office market continued to weaken in the fourth quarter under the persistent pressure of the pandemic. Market activity was considerably below average in the fourth quarter, as many tenants remained paused in their search for office space. Limited demand over the last nine months has contributed to occupancy losses and increasing vacancy. The District of Columbia did not deliver any office buildings in the fourth quarter; however, the pipeline of deliveries in 2021 is likely to put upward pressure on vacancy rates as some buildings deliver with large blocks of unoccupied space. Net absorption registered -311,036 square feet during the fourth quarter of 2020. Asking rents rose in the fourth quarter to $57.49/SF, which nearly offset the 15-cent rent reduction experienced in the third quarter.

DOWNLOAD DISTRICT OF COLUMBIA OFFICE MARKET REPORT 4Q20