MARKET REPORT - Colliers International/media/files/united states/markets/district of columbia...by...

MARKET OVERVIEW

Second quarter office statistics in Northern Virginia reflect a stagnant market. Office vacancy closed at 15.4%, a drop of 10 basis points from the first quarter. No new buildings were delivered, and while net absorption was positive, there was a noticeable decrease in leasing activity compared to the first quarter.

The Northern Virginia Office market is in a state of uncertainty. With buzz terms like sequestration and fiscal cliff in the news, and with Presidential elections coming in November, businesses are hesitant to act until the future appears more certain. Huge companies are prepared to downsize or relocate, and the GSA continues to reduce its leasing footprint due to BRAC. Expect the uncertainty cloud to linger into 2013.

On the contrary, however, second quarter activity did shed light on businesses’ eagerness to move forward and to upgrade. Reston Town Center contract rates reached a new mile stone when Sterling-based Pixia leased 17,000 SF for $50 per square foot. The Fairfax submarket saw an unusual uptick in leasing activity when Northern Virginia Community College (NVCC) leased 86,000 SF with expansion plans already in discussion. Palantir, a software and technology company, expanded their space in Tysons Corner by 50,000 SF. Crystal City, currently one of the softest submarkets in Northern Virginia, is still attracting major tenants; DRS Technologies even relocated their headquarters from New Jersey to Crystal City and leased 93,000 SF, this move draws huge implications.

The construction outlook also looks very optimistic with all projects being on-time or ahead of schedule.

Express Lanes (HOT lanes) on I-495 are scheduled to be usable by the end of the year and will help reduce commuter traffic. The second phase of Metro’s Silver Line, a multi-billion dollar project, was finally approved; the first phase is still scheduled to deliver in 2013. 1775 Tysons Boulevard, a 475,000 SF trophy project developed by Lerner, recently received financing and has broken ground, it is on time and expected to deliver in 2014. Construction for Tysons Tower, a 527,000 SF mixed-use trophy project developed by Macerich, is cranking on all cylinders, it is on time and expected to deliver in 2014. Northern Virginia’s tallest building 1812 North Moore, a 580,000 SF mixed-use project owned by Monday Properties, is still slated to deliver in mid to late fall. Nearly 3,000,000 SF of office space is expected to deliver before 2015. Almost 2,000,000 SF is speculative, meaning investors and developers have literally bet their money on high future demand.

As the unknown becomes clearer and the optimism spreads, expect to see activity beef up in the coming years.

MARKET REPORTNORTHERN VIRGINIA

www.colliers.com/washingtondc

Q2 2012 | OFFICE

Second Quarter

Q3 2011 Q4 2011 (p)

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

UPDATED SUMMARY STATISTICS

Q2 2011 Q2 2012

VACANCY RATE: 14.5% 15.4%ABSORPTION YTD: 265,972 SF (271,564) SF

DELIVERIES YTD: 123,600 SF 330,198 SF UNDER CONSTRUCTION: 1,200,000 SF 3,000,000 SF

ASKING RENTS/SF: $29.65 $30.77

MARKET INDICATIONS

Q2 2012 Q3 2012 (p)

VACANCY — —

NET ABSORPTION — —

CONSTRUCTION —

RENTAL RATE —

Northern Virginia Market in a State of Uncertainty

ECONOMIC OVERVIEW

The leading industries in the metro area are Government, Professional and Business Services, Trade, Transportation, and Utilities and Education and Health Services. Both the Government and Trade, Transportation, and Utilities industries experienced negative growth over the past 12 months (-0.1% and -0.8% respectively). Professional and Business Services experienced a 0.6% growth margin, and Education and Health Services added 14,300 jobs – good for a 4.9% change.

The Washington Metro Area Unemployment Rate dropped 40 basis points over the last year to 5.4% - well below the national average of 8.2%. One year ago, the national average was 9.1%. The delta of nearly one percentage point shows progress, but since January (a half year ago) the national unemployment has only dropped 10 basis points. Furthermore, hiring in the second quarter has waned as compared to the first quarter. This slowdown in hiring further exemplifies the holding pattern due to uncertainty.

SALES ACTIVITY

There were $319 million ($173/SF) of investment sales activity during the second quarter. While sales activity was seen in all corners of the market, most of it was concentrated in the Route 28 Corridor. In the south, Clark Enterprises sold Trinity Centre to Spear Street Capital – a sale of 4 Class “A” properties totaling $66.5 million ($136/SF). In the north, Tishman Speyer sold 3 Class “A” properties located on Ridgetop Circle to various buyers. These properties were part of a greater, 23-property portfolio sale that totaled over $338 million (individual prices were not recorded). Another noteworthy transaction was TA Associates’ sale of 1005 N Glebe Road to the Washington Real Estate Investment Trust (WRIT). The 139,902 SF Class “A” building in Ballston sold for $52 million ($373/SF).

RECENT LEASE TRANSACTIONS

TENANT ADDRESS SUBMARKET SQUARE FOOTAGE TYPE

Pixia 11951 Freedom Drive Reston 17,068 SF New

Northern Virginia Community 3922-3926 Pender Drive Fairfax Center 86,865 SF New

Palantir 1600 International Drive Tysons Corner 50,000 SF Expansion

DLS Technologies 2345 Crystal Drive Crystal City 93,000 SF Expansion

DELIVERIES AND CONSTRUCTION

Currently, there is 3 million square feet of office space under construction in Northern Virginia. The vast majority of the construction is happening in the RB Corridor, Tysons Corner, and Springfield submarkets. The RB Corridor is home to 928,535 square feet, or 30%, of all the office space under construction in Northern Virginia comprising of three properties. Consisting of 718,535 square feet of combined space, 1812 N Moore Street and 1776 Wilson Boulevard are expected to deliver within the next 16 months. The third building is 3001-3003 Washington Boulevard and will add 280,000 SF when it delivers in 2014. Fairfax County has 1.6 million square feet of office space under construction. Of all the construction in Fairfax County, 65% of it is happening in the Tysons Corner and Springfield submarkets. The Lerner Company has broken ground at 1775 Tysons Boulevard on a 475,000 square foot building that is expected to deliver in the 1st quarter of 2014. Tysons Tower, a 524,400 SF Macerich project at Tysons Corner Center, is also under construction and expected to deliver in 2014. In anticipation of the Dulles Metro Rail, many more projects will be breaking ground within the next few years.

There were no deliveries during the second quarter but several buildings are getting ready to deliver. 1776 Wilson Boulevard in Rosslyn is expected to deliver in the third quarter and will add 138,535 SF of office space to the inventory. The 5-story building is developed by Skanska and will have LEED Platinum status. NACD and CRDF have preleased this building for a combined total of 53,059 SF. 7770 Backlick Road in Springfield, a 240,565 SF office building designed to meet government security standards, is getting ready to deliver in the third quarter as well. It will be the first of four buildings delivering at Patriot Ridge, a 900,000 SF office park, in the next few years. The building is 42% preleased by General Dynamics. One Mosaic in Merrifield will deliver its 72,531 SF of office space in the third quarter. It has only been 8% preleased.

P. 2 | COLLIERS INTERNATIONAL

MARKET REPORT | Q2 2012 | OFFICE | NORTHERN VIRGINIA

ABSORPTION

During the second quarter of 2012, Northern Virginia posted a modestly positive 260,195 SF of absorption. While the majority of the submarkets remained relatively flat, the Rosslyn-Ballston Corridor (RBC) submarket paced Northern Virginia with positive absorption of 241,137 SF.

All of RBC’s positive absorption occurred among Class “A” buildings. The significant deals contributing to this fact were PAE’s leasing of 71,122 SF at 1320 N Courthouse, and Arlington County Public Schools’ leasing 62,000 SF at 2110 Washington Boulevard. The only other submarkets in Northern Virginia to boast over 100,000 square feet of absorption during the second quarter were Springfield (186,353 SF) and Tysons Corner (110,155 SF).

The most notable office lease in Northern Virginia during the quarter was a renewal. BAE renewed 133,808 SF at Reston Commons (11487 Sunset Hills Road) and occupies the full building.

Office space in Arlington County continued to take a hit during the second quarter, highlighted by the Crystal/Pentagon Cities submarket experiencing negative 452,481 square feet of absorption. The Crystal/Pentagon Cities submarket had the largest negative absorption total by any single submarket, largely due to BRAC and the Federal Government moving out of their fully-occupied buildings in Crystal City.

VACANCY

Total vacancy in Northern Virginia edged down 10 basis points to 15.4% during the quarter. The total vacancy rate in Northern Virginia has remained in the low-to-mid teens range over the past three years. Fairfax County experienced the most improvement during the second quarter as its vacancy rate decreased 40 basis points to 15.3%. Arlington County experienced just the opposite as its vacancy rate increased from 13.5% to 14.1%.

RENTAL RATES

The average rental rate continued its upward swing during the second quarter of 2012, finishing at its highest rate since year-end 2008. The overall asking rate averaged $30.77 per square foot, up from $30.49 in the first quarter and $30.41 in the fourth quarter of 2011. Class “A” rental rates averaged $34.08 during the second quarter, up from $33.86 the quarter prior. Class “B” rents increased to $29.20 from $29.05, but Class “C” rents decreased to $24.68 from $24.76. We expect rents to level off over the next 12 months as more vacant space floods the market.

VACANCY

0.0%

5.0%

10.0%

15.0%

20.0%

ABSORPTION

(800,000) (600,000) (400,000) (200,000)

- 200,000 400,000 600,000 800,000

1,000,000

RENTAL RATES

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Class A Class B Class C

LOOKING FORWARD

The greater Washington D.C. commercial real estate market is in a state of uncertainty right now. The real fear is the compounding of two upcoming factors that could make or break the local commercial real estate market in the near future. The first is the uncertainty of the upcoming election. Federal funding flows in distinctly different directions depending on the party that is in office. When Federal agencies are unable to make long-term decisions, the market slows. Secondly and most significantly are the massive budget cuts that will continue to take place regardless of the party in place after November. There are currently $1.2 trillion in mandatory Federal budget cuts over the next 10 years that are split fairly between Defense and Non-Defense agencies. But has always been the cases in history, crises are dealt with, lessons are learned and huge strides are made going forward. This particular time in history is no exception.



SIGNIFICANT NORTHERN VIRGINIA CONSTRUCTION PROJECTS

BUILDING ADDRESS SUBMARKET BUILDING SF DELIVERY DATE LEAD TENANT(S)

7770 Backlick Road

Building 1Springfield / Burke 240,565 SF Summer 2012 General Dynamics

1776 Wilson Boulevard Rosslyn-Ballston Corridor 138,535 SF Fall 2012 NACD, CRDF

1812 North Moore Street Rosslyn-Ballston Corridor 538,092 SF Fall 2013 N/A

1775 Tysons Boulevard Tysons Corner 476,000 SF Winter 2014 N/A

1400 Crystal Drive Crystal City 308,000 SF Spring 2013 N/A

8595 Leesburg Pike Tysons Corner 150,000 SF 2013 N/A

3001-3001 Washington Boulevard

Phase 1Rosslyn-Ballston Corridor 210,000 SF 2014 Center for Naval Analyses

7900 Tysons One Place -

Tysons TowerTysons Corner 526,900 SF 2014 N/A



ACTIVITY ABSORPTION RENTS

Submarket/Class Bldgs RBA

Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4

Absorption Current Qtr

SF

Net Absorption YTD

Weighted 5

Avg Asking Lease Rate

1 200,000 14.4% 0.9% 15.3% 15.3% 0 0 0 $25.70B 8 381,964 5.1% 0.1% 5.3% 32.0% 9,866 102,043 108,472 $24.63

45 1,270,728 9.3% 0.0% 9.3% 8.9% 650 (5,155) (9,819) $22.5754 1,852,692 9.0% 0.1% 9.1% 14.3% 10,516 96,888 98,653 $23.90

28 4,412,999 8.9% 3.5% 12.4% 12.7% 44,506 14,885 (19,987) $28.09B 76 4,542,365 16.5% 0.8% 17.2% 18.5% 138,645 56,038 79,725 $23.80

89 2,488,141 7.9% 0.1% 8.0% 8.9% 24,486 23,952 (2,471) $20.70193 11,443,505 11.7% 1.7% 13.4% 14.2% 207,637 94,875 57,267 $25.57

1 85,000 0.0% 0.0% 0.0% 2.2% 1,864 1,864 1,864 $28.50B 19 1,259,947 7.7% 3.4% 11.1% 11.9% 4,200 9,423 25,012 $25.13

49 1,047,670 13.6% 0.5% 14.1% 12.6% 5,188 (15,319) (10,928) $20.8169 2,392,617 10.0% 2.0% 12.0% 11.8% 11,252 (4,032) 15,948 $23.53

B 13 498,725 6.0% 0.0% 6.0% 7.7% 7,978 8,508 11,124 $33.2547 1,063,695 7.5% 0.4% 7.9% 7.2% 21,199 (7,528) (216) $28.7660 1,562,420 7.0% 0.2% 7.3% 7.3% 29,177 980 10,908 $30.36

HERNDON47 7,949,950 12.9% 1.2% 14.2% 14.6% 63,158 35,285 (236,091) $30.58

B 51 3,201,866 11.1% 2.2% 13.3% 12.7% 65,269 (18,906) 104,362 $22.1135 786,928 16.1% 0.0% 16.1% 16.8% 5,063 4,994 (1,253) $20.37

133 11,938,744 12.7% 1.3% 14.0% 14.2% 133,490 21,373 (132,982) $26.88

26 4,589,907 8.4% 0.9% 9.4% 8.6% 60,660 (32,381) (98,732) $32.72B 31 3,162,273 13.9% 0.9% 14.8% 15.8% 60,561 33,894 47,282 $28.84

44 1,281,554 9.0% 1.8% 10.9% 11.3% 5,261 6,121 (14,369) $26.34101 9,033,734 10.4% 1.0% 11.5% 11.5% 126,482 7,634 (65,819) $30.57

3 396,771 38.7% 0.0% 38.7% 33.6% 48,315 (20,115) 52,476 $28.69B 9 1,059,829 12.4% 0.9% 13.4% 13.8% 3,533 4,243 (33,613) $25.93

7 131,336 3.9% 0.0% 3.9% 5.2% 0 1,828 2,495 $19.9619 1,587,936 18.3% 0.6% 18.9% 18.0% 51,848 (14,044) 21,358 $27.20

RESTON61 10,812,778 15.9% 3.9% 19.8% 19.3% 204,122 (64,593) (73,654) $30.33

B 72 5,838,804 16.9% 0.7% 17.6% 18.1% 82,137 24,483 79,812 $26.2355 1,859,832 15.4% 0.4% 15.8% 17.1% 35,501 25,546 76,177 $22.71

188 18,511,414 16.2% 2.5% 18.7% 18.7% 321,760 (14,564) 82,335 $27.72

RT. 28 SOUTH (CHANTILLY)A 53 8,012,989 13.2% 0.2% 13.4% 13.1% 78,221 (21,153) 266,049 $28.51B 68 4,188,801 20.0% 0.8% 20.8% 20.2% 78,937 (26,735) (6,192) $22.68C 35 1,088,628 11.9% 6.2% 18.0% 20.1% 10,571 23,236 20,790 $18.32Subtotal 156 13,290,418 15.2% 0.9% 16.1% 15.9% 167,729 (24,652) 280,647 $25.28

A

C

MERRIFIELD

FAIRFAX

Subtotal

Subtotal

Subtotal

A

A

C

EXISTING PROPERTIES

FAIR

FAX

CO

UN

TY

A

CSubtotal

OAKTON

VACANCY

SubtotalC

MCLEAN

C

A

SubtotalC

C

AFALLS CHURCH

ANNANDALE

A

CSubtotal

Subtotal

Northern Virginia Market StatsSecond Quarter 2012Northern Virginia Market StatsSecond Quarter 2012





Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4


SF

Net Absorption YTD

Weighted 5


EXISTING PROPERTIES VACANCY

Northern Virginia Market StatsSecond Quarter 2012

SPRINGFIELDA 12 1,771,759 14.0% 5.2% 19.2% 29.6% 10,244 184,635 150,787 $41.27B 41 1,933,330 12.9% 0.0% 12.9% 11.4% 18,865 (28,771) 6,095 $24.46C 81 2,519,373 11.3% 0.1% 11.4% 12.7% 11,358 30,489 3,913 $19.42Subtotal 134 6,224,462 12.6% 1.5% 14.1% 17.1% 40,467 186,353 160,795 $28.34

TYSONS CORNERA 47 12,313,834 10.0% 1.8% 11.8% 12.6% 158,941 94,079 27,607 $36.88B 104 13,245,622 18.5% 0.9% 19.4% 19.6% 182,280 24,326 (128,690) $27.09C 42 2,487,241 24.0% 0.2% 24.3% 23.9% 3,789 (8,250) (34,396) $24.99Subtotal 193 28,046,697 15.3% 1.2% 16.5% 16.9% 345,010 110,155 (135,479) $29.65

VIENNAA 1 189,000 0.0% 0.0% 0.0% 0.0% 0 0 0 -B 5 567,653 3.1% 0.0% 3.1% 3.0% 0 (876) 8,543 $20.84C 33 810,210 25.8% 0.0% 25.8% 26.3% 5,537 3,784 7,650 $25.66Subtotal 39 1,566,863 14.5% 0.0% 14.5% 14.7% 5,537 2,908 16,193 $24.63

FAIRFAX COUNTYA 280 50,734,987 12.3% 2.1% 14.4% 14.8% 670,031 192,506 70,319 $31.60B 497 39,881,179 16.0% 0.9% 16.9% 17.4% 652,271 187,670 301,932 $25.64C 562 16,835,336 13.6% 0.7% 14.3% 14.8% 128,603 83,698 37,573 $22.30Subtotal 1,339 107,451,502 13.9% 1.4% 15.3% 15.7% 1,450,905 463,874 409,824 $27.68

59 14,941,437 8.0% 2.5% 10.5% 12.4% 147,018 273,253 428,763 $43.96

B 44 7,196,889 13.4% 0.7% 14.1% 13.9% 155,956 (18,375) (19,738) $41.09

33 1,802,844 10.5% 0.7% 11.1% 10.4% 3,451 (13,741) 19,222 $33.51

136 23,941,170 9.8% 1.8% 11.7% 12.7% 306,425 241,137 669,384 $41.80

16 5,156,638 15.0% 0.3% 15.3% 13.3% 13,727 (105,190) (177,713) $42.38B 14 4,122,323 33.3% 0.3% 33.7% 25.7% 14,914 (329,870) (704,159) $39.18

18 3,774,281 5.8% 0.4% 6.2% 5.8% 20,644 (17,421) (2,311) $34.7648 13,053,242 18.1% 0.4% 18.5% 15.0% 49,285 (452,481) (884,183) $39.90

75 20,098,075 9.8% 2.0% 11.8% 12.6% 160,745 168,063 251,050 $43.40B 58 11,319,212 20.6% 0.6% 21.2% 18.2% 170,870 (348,245) (723,897) $40.14

51 5,577,125 7.3% 0.5% 7.8% 7.2% 24,095 (31,162) 16,911 $34.08184 36,994,412 12.8% 1.3% 14.1% 13.5% 355,710 (211,344) (455,936) $40.99Subtotal

FAIR

FAX

CO

UN

TY

R-B CORRIDOR

Arlin

gton

Cou

nty

ARLINGTON COUNTYA

C

Subtotal

CRYSTAL/PENTAGON CITIESA

C

A

C

Subtotal






Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4


SF

Net Absorption YTD

Weighted 5




35 3,591,819 16.8% 3.0% 19.8% 19.9% 79,745 3,055 13,805 $35.38B 106 4,302,671 10.9% 0.9% 11.8% 11.8% 37,447 423 11,329 $29.92

56 1,242,669 6.0% 0.7% 6.7% 6.2% 5,965 (6,755) (9,072) $27.53197 9,137,159 12.5% 1.7% 14.2% 14.2% 123,157 (3,277) 16,062 $32.69

26 7,600,436 20.0% 1.0% 21.0% 20.8% 14,015 (21,440) (139,837) $32.93B 48 5,688,976 16.2% 1.2% 17.3% 16.9% 27,585 (23,963) (208,289) $31.12

52 1,675,460 7.8% 0.0% 7.8% 8.2% 2,226 7,120 26,988 $22.37126 14,964,872 17.2% 1.0% 18.1% 17.9% 43,826 (38,283) (321,138) $31.24

61 11,192,255 19.0% 1.7% 20.6% 20.5% 93,760 (18,385) (126,032) $34.13B 154 9,991,647 13.9% 1.0% 14.9% 14.7% 65,032 (23,540) (196,960) $30.76

108 2,918,129 7.0% 0.3% 7.3% 7.3% 8,191 365 17,916 $24.59323 24,102,031 15.4% 1.2% 16.7% 16.5% 166,983 (41,560) (305,076) $31.81

45 5,460,869 17.7% 0.3% 18.0% 17.3% 13,394 (36,561) (17,979) $25.76B 78 3,633,879 20.8% 0.5% 21.3% 22.2% 55,075 33,035 32,457 $21.44

13 452,057 6.9% 0.0% 6.9% 7.3% 0 1,974 (4,725) $17.86136 9,546,805 18.4% 0.4% 18.7% 18.7% 68,469 (1,552) 9,753 $23.52

66 7,045,532 20.9% 0.2% 21.2% 21.0% 27,028 (8,978) 4,052 $26.15B 143 7,515,413 14.2% 0.6% 14.8% 15.4% 80,288 51,519 67,051 $22.24

56 1,401,822 8.5% 0.0% 8.5% 9.4% 8,026 12,572 8,916 $22.74265 15,962,767 16.7% 0.4% 17.0% 17.4% 115,342 55,113 80,019 $24.31

17 1,119,259 17.8% 1.2% 18.9% 17.8% 28,785 (13,073) 7,380 $25.83B 72 2,420,551 14.0% 1.0% 15.0% 16.0% 8,240 24,430 (5,421) $22.55

82 1,881,305 10.5% 0.0% 10.5% 9.7% 24,625 (15,074) 16,481 $20.43171 5,421,115 13.6% 0.6% 14.2% 14.2% 61,650 (3,717) 18,440 $23.02

RT. 28 NORTH

APRINCE WILLIAM COUNTY

C

A

CSubtotal

EISENHOWER AVE/I-395 CORA

C

C

A

Subtotal

ALEXANDRIAA

CSubtotal

LOUDOUN COUNTY

Subtotal

Subtotal

Ale

xand

ria

A

Loud

oun

and

Prin

ce W

illia

m C

ount

ies

CSubtotal

OLD TOWN ALEXANDRIA






Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4


SF

Net Absorption YTD

Weighted 5




499 90,190,108 13.3% 1.9% 15.2% 15.5% 980,349 317,962 240,777 $34.08

924 71,128,002 16.2% 0.8% 17.0% 16.9% 976,701 (108,166) (610,138) $29.20

859 28,613,717 11.3% 0.5% 11.8% 12.0% 194,890 50,399 97,797 $24.68

2,282 189,931,827 14.1% 1.3% 15.4% 15.5% 2,151,940 260,195 (271,564) $30.77NORTHERN VIRGINIA

1Includes all buildings over 10,000 Square Feet 2Direct vacant includes all space that is entirely vacant and immediately ready for occupancy 3Total direct and direct sublet SF that is completely vacant at quarter end 4The net change in occupied direct and sublease space 4SF completed via new construction plus return-to-market of renovated space, less space demolished 5Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all direct vacant spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Rental rate averages include Direct Vacant space and calculated at the quarter end.

NORTHERN VIRGINIA

NORTHERN VIRGINIA

NORTHERN VIRGINIA

NORTHERN VIRGINIA CLASS A TOTALS

NORTHERN VIRGINIA CLASS B TOTALS

NORTHERN VIRGINIA CLASS C TOTALS

NORTHERN VIRGINIA CLASS A, B, C TOTALS

NORTHERN VIRGINIA CLASS A TOTALS

NORTHERN VIRGINIA CLASS B TOTALS

NORTHERN VIRGINIA CLASS C TOTALS

NORTHERN VIRGINIA CLASS A, B & C TOTALS




COLLIERS INTERNATIONALNORTHERN VIRGINIA OFFICE:

8045 Leesburg PikeSuite 401Vienna, VA 22182TEL +1 703 394 4800www.colliers.com/washingtondc

RESEARCHER:PATRICK SCORAH

TEL +1 703 394 [email protected]

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• $1.5 billion in annual revenue

• 978.6 million square feet under management

• Over 12,000 professionals

Deliveries:

Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property.

Direct Space:

Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of tenant) trying to sublet a space that has already been leased.

Existing Inventory:

The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.

Leasing Activity:

The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings.

Rentable Building Area (RBA):

The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. This report tracks buildings with 10,000 square feet or more of speculative space. Includes competitive space in Class A, B and C single and multitenant buildings. Excludes buildings that were built with the intent to house only medical users and government owner-occupied buildings.

Sublease Space:

Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space.

Vacant Space:

Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space.

Inventory:

Includes all existing multi- or single-tenant leased and owner-occupied office properties greater than or equal to 10,000 square feet (net rentable area). Does not include medical of government buildings.

DEFINITIONS OF KEY TERMS FOUND IN THIS REPORT

Net Absorption:

The net change in occupied space over a given period of time. Unless otherwise noted, Net Absorption includes direct and sublease space.

Weighted Average Asking Rental Rates:

Weighted by the total square feet available for direct lease. Data is based on Full Service Gross rents, and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Reports on an annual per square foot basis.


MARKET REPORT - Colliers International/media/files/united states/markets/district of columbia...by...

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