- With record high vacancy rates and a slowing pipeline coupled with an aging office inventory, Washington, D.C. is anticipating a quality squeeze.
- As the lending environment remains challenging, we expect to see reduced new supply in the pipeline.
- Recent deliveries and under construction buildings have leased top stacks and left few trophy middle and lower levels available.
- The D.C. government has proposed adding 7 million square feet of residential units and increase the city’s population up to 725,000 sf (a 9.9% increase over the next five years) in Mayor Bowser’s “Comeback Plan”.
- There is over 3 million square feet (msf) of office space planned for residential conversion while another 3 msf is rumored for conversion.
Washington, D.C. Office Supply Update
Lauren Kraemer • 3/2/2023
Get the latest update and report for Washington, D.C.’s future office supply and trends within the office to residential conversions.
Insights • Workplace
Much has been written about the potential death of the office, with justifiable concern that some office properties may never again be fit for their original purpose. Running counter to the doomsday narrative is Cushman & Wakefield’s new publication, Obsolescence Equals Opportunity. In it, we offer a perspective focused on the upside potential for owners who are able to meet the market’s call to action.Kevin Thorpe • 2/22/2023