WASHINGTON, DC-New supply poised to enter the District's CentralBusiness District should ease slightly its vacancy rates, whichhave been historically very low. At the end of Q3, the CBD'svacancy rate was 3.8%, compared to Georgetown/West End and theSouthwest markets, where vacancy rates ended the quarter at 11.8%and 10.3%, respectively, according to a new report by GVAAdvantis.


According to the report, some 837, 634 sf will deliver in theCBD over the next few months. This includes: 2121 K St., NW, a192,040-sf building, is currently under renovation.Delivery is scheduled for October 2007; 2101 L Street, NW, a372,422-sf building, is currently under renovation, with a deliveryscheduled for November, 2007; 1129 20th St., NW is currentlyundergoing an expansion, with the addition of two stories whichtotal 32,676 sf. Renovation began in January of 2007 and isexpected to be complete by January 2008; and the Louis DreyfusProperty Group started construction of the 240,496-sf officeproperty at 801 17th St. The 12-story, class A office property willdeliver in March of 2009.


While the CBD has historically had tight occupancy rates, thereport noted, they did decrease slightly in 2007. Partly this wasdue to Dewey Ballantine's decision move to 975 F St. in the EastEnd, leaving vacant 83,000 sf at 1775 Pennsylvania Ave. Also,National Cooperative Bank added 48,707 sf of sublet space to 1725Eye St; 59,200 sf was vacated by the Federal Housing Finance Boardat 1777 F St, and 53,706 sf was vacated by the International Unionof Bricklayers as a result of their move to 650 F St, also locatedin the East End.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.