WASHINGTON, DC—Leasing in the District closed out the year on a high note with some 2.6 million square feet of office space taken, according to JLL.
The private sector took a surprisingly large amount of space, at some 1 million square feet. The public sector, however, generated the majority, or 60%, of the leasing activity.
In the private sector the deals included large renewals such as Steptoe & Johnson's decision to stay at 1330 Connecticut Ave., to smaller transactions at the 20,000 square foot mark.
JLL also reports that activity among federal, local and quasi-government tenants "surged" in the quarter, comprising 60% of deals. Six of the eight federal agencies that finalized large leases during the quarter signed long- term deals, in comparison to only three of 12 over the same period last year, it reported.
Demand for Non-core Space Grows
One interesting data point from the report is that non-core submarkets captured the majority of large tenant deals. "The uptick in federal activity drove demand in Southwest as US Federal Mediation and Conciliation Service and DC Department on Disability Services both relocated to the submarket from the CBD."
Editor's Note: This story was updated to reflect a correction JLL said it is making to its report.
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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.
