Following 10 building deliveries in 2018 totaling 3.1 million sq. ft., development activity remains robust in the District, set to add 3.5 million sq. ft. of new product in 11 buildings by the end of the year in addition to the Q1 delivery of 500 L’Enfant Plaza, SW.
With prominent leases by Chemonics and Urban Institute, D.C.’s Southwest and Southeast waterfronts continue to gain momentum. Vacancy rates in waterfront markets have decreased to 11.0% from 12.0% five years ago, while the CBD and East End combined vacancy has risen from 11.2% to 13.5% during the same time period.
WeWork’s two new leases in Q1 totaling 211,000 sq. ft. signify the continued growth of the flexible office market in the District, which now spans 81 coworking locations totaling 2.3 million sq. ft., accounting for 1.8% of total office inventory.