Nine buildings totaling 2.9 million sq. ft. delivered in the District in 2019, closely trailing the record completion of 3.1 million sq. ft. in 2018. The majority of the new product from 2019 (69%) is Trophy-grade space, as that segment continues to capture the most net new tenant demand.
Following a strong year in 2018 with 2.8 million sq. ft. of occupancy growth, the market posted a healthy 1.3 million sq. ft. of positive net absorption in 2019. More than half of the growth (56%) was attributable to the coworking sector which grew by 750,000 sq. ft. with the addition of 14 new locations.
A submarket to highlight, Capitol Riverfront—with the lowest vacancy rate of all D.C. submarkets at 6.7%—is an increasingly attractive destination for tenants seeking quality product with unique characteristics and rich live-work-play amenities.