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Developers Look Four Years Down The Road For Tenants

Cushman & Wakefield’s Q2 report also reports that the current bright spot in the District is the CBD Class B market, which has tightened as space has been renovated into Class A.

DC’s K street

WASHINGTON, DC–The overarching theme of the District’s office market has been, for some time, how will it absorb the large pipeline of new supply that is coming online. Cushman & Wakefield has added a startling datapoint to this conversation: in some cases developers are looking as much as four years down the road to find tenants capable of paying the high rent and taking down large blocks of space in the market.

Already the new and renovated supply that is coming online in the District is putting upward pressure on vacancy. Right now most of the new buildings competing for top of market tenants are in the CBD, which has seen 1.9 million square feet delivered so far in 2018 and has another 1.3 million square feet under construction, according to C&W,

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Erika Morphy

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.

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