WASHINGTON, DC-Here they are: CBRE's preliminary figures on Q2 in the DC area:

In Washington, DC the vacancy rate decreased somewhat and ended the quarter at 10.2%

CBRE says this is a result of slight growth among smaller firms--under 20,000 square feet--and many renewals in place. Rents remain relatively unchanged, while concessions are well above historical averages. The quarter's largest leasing transaction was the US Secret Service renewal of 78,700 square feet in the East End. No leases over 100,000 square feet were inked this quarter -- a stark contrast from two years ago when there were five transactions of that size, as CBRE's Jeff Kottmeier noted.

In the Northern Virginia office market, the vacancy rate increased to 16.2%, surpassing the previous high-water mark of 16% in 2002.

CBRE says this increase was driven in large part by tenant moves and consolidations. Net demand remains negative, but is improving compared to one year ago. Due to growth in technology firms, some smaller tenants—many new to the market—are moving in. CBRE also noted that rents decreased $1-2 per square foot, especially along the Toll Road where landlords remain aggressive with rates to retain current tenants and attract new ones.

In Suburban Maryland, the vacancy rate increased by one percentage point to 16.9%.

A push toward right-sizing of government contractors and federal offices promoted reductions in leasing demand, CBRE said. The largest contraction this quarter was a consolidation by CSC that vacated almost 325,000 square feet in Prince George's County. It will only get worse: as CBRE notes by 2014, the federal government is expected to have returned nearly 2 million vacant square feet to the market through consolidations and relocations of the U.S. Department of Health and Human Services, National Institute of Allergy and Infectious Diseases (NIAID), and National Cancer Institute.

Instant Insights /

DC's Q2 By the Numbers

Related Stories

Recommended For You