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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.