A series of large office buildings delivering in the District with major chunks of leased space drove the second quarter to be the city’s strongest for net office absorption since before the Great Recession, a CBRE report found.
The two-building Midtown Center development from Carr Properties The District’s office market recorded 1.2M SF of net absorption in Q2, according to CBRE, which counts absorption by office tenant move-ins. The strong quarter was driven by the completion of six office projects totaling 2.4M SF, with 65% of that space leased up at the time of delivery.
JLL’s Q2 report also shows strong demand numbers, with the D.C. region recording 1.7M SF of net absorption in the first half of the year. JLL projects annual absorption will reach close to 3M SF by year-end, which would make 2018 the region’s best year since 2010 for office demand.
The quarter’s growth was led by Fannie Mae moving into its new, 752K SF space at Midtown Center, the major Downtown D.C. development Carr Properties recently completed. Hoffman-Madison Waterfront completed The Wharf’s trophy office building at 1000 Maine, with 79% of the 232K SF of space leased to tenants such as Fish & Richardson and Washington Gas.
Click here to read the rest of the article written by Jon Banister over at Bis Now