WASHINGTON, DC–A new research note from JLLconcludes that the federal government is losing the leveragetenants typically have in this city with landlords. The reason?Space options for federal agencies that are greater than 50,000square feet in Washington, DC have declined by 35% since 2015. Atthe same time, since the beginning of 2014, federal government neteffective rents have increased by nearly 30%.

Driving this trend has been the rapid population growth and thedelivery of new multifamily, retail and neighborhood amenities tothe Southwest, NoMa and the Ballpark submarkets, leading developersto ditch their federal government leasing plans and shift focus totarget the private sector at rates that are 10%-20% above thefederal government's prospectus cap, JLL said.

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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.