WASHINGTON, DC-The Washington DC area typically posts about 900,000 square feet of positive absorption every quarter for office product. Not this quarter, however. According to Cassidy Turley, it is posting nearly 100,000 square feet of negative absorption for Q2.

We can thank cut backs in government spending for that, along with a slightly off-kilter job market. “The effect of the federal contraction is particularly acute in government-contractor-heavy Northern Virginia, and therefore, the fiscal drag is most noticeable there,” Nathan Edwards, Director of Research, says in a prepared statement. But tenant-downsizing is also a problem, he continues. “Whether it’s due to technology, new space efficiency plans, or smaller headcount, businesses are simply signing for less office space in this recovery, so we are not getting the same pop in demand from job growth that we are accustomed to getting.”

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