Washington, DC - Office Market Overview
The Washington Metropolitan Area includes the D.C. (The District), Suburban Maryland and Northern Virginia submarkets. Their combined economy is continuously diversifying and growing, and the Washington D.C. office market is expanding around what is a heavily government-oriented office sector.
As of mid-2017, the Greater D.C. market encompasses roughly 374 million square feet of existing office space, in properties larger than 50,000 square feet. Supported by one of the busiest and best-performing transportation systems in the country, the market continues to thrive.
Washington, DC - Office Inventory Description
The better part of D.C.’s existing office inventory was built starting with the yet unparalleled construction boom of the 1980s. But don’t let age fool you—70% of D.C. office space is Class A product. While Class B office properties make up roughly 30% of Washington D.C.’s office inventory, improvement Class C buildings larger than 50,000 square feet have been intensely redeveloped and repositioned, and now make up less than 1% of the total Washington D.C. office market inventory.
The densest local office submarkets are Downtown Washington D.C. , the historic Penn Quarter neighborhood, and Dupont Circle. These three neighborhoods also roughly make up today’s D.C. Central Business District, and are home to tech poster child for D.C. Blackboard Inc.’s headquarters, as well as the National Press Building and headquarters of almost all major government agencies.
Emerging D.C. office submarkets include the Southwest Waterfront, which is home to new Class A office developments like The Wharf and National Square, as well as the intended home of planned and proposed office projects, such as Waterfront Station.
Washington, DC Commercial Inventory Breakdown
Total: 151,047,349 SF
By square footage range:
- 50k to 100k SF: 7,411,112 SF / 4.91% of total office
- 100k to 500k SF: 110,625,677 SF / 73.24% of total office
- 500k to 1M SF: 25,673,492 SF / 17% of total office
- > 1M SF: 7,337,068 SF / 4.86% of total office
- Class A+: 17,789,612 SF / 11.78% of total office
- Class A: 79,663,634 SF / 52.74% of total office
- Class B: 35,572,305 SF / 23.55% of total office
Top 10 Largest Office Buildings
|Office building||Address||Sqft||Year built|
|Poplar Point||NEC South Capitol Street SE & Howard Road SE, 20020||1,662,300||n/a|
|Burnham Place at Union Station||NEC First Street NE & Columbus Circle NE, 20002||1,600,000||n/a|
|USDOT Headquarters||1200 New Jersey Avenue SE, 20001||1,500,000||2006|
|Constitution Center||400 7th Street SW, 20024||1,403,712||1970|
|International Square||1825 I Street NW, 20006||1,171,056||1977|
|International Finance Corporation Headquarters||2121 Pennsylvania Avenue NW, 20433||882,174||1997|
|The Yards - Parcel A||SEC First Street SE & M Street SE, 20003||879,992||n/a|
|McMillan Medical Offices - Phase I||SWC Michigan Avenue NW & North Capitol Street NW, 20422||875,000||n/a|
|Midtown Center||1150 15th Street NW, 20071||862,000||2018|
|Alexander Court||2001 K Street NW, 20006||815,000||2018|
Most Recently-Built Office Buildings
|Office building||Address||Sqft||Year built|
|Uline Arena||1140 3rd Street NE, 20002||241,873||2017|
|2000 K Street||2000 K Street NW, 20006||235,259||2017|
|The Wharf - 800 Maine||800 Maine Avenue SW, 20024||232,000||2017|
|700 Penn||700 Pennsylvania Avenue SE, 20003||192,000||2017|
|601 Massachusetts Avenue||601 Massachusetts Avenue NW, 20002||478,883||2016|
|600 Massachusetts Avenue||600 Massachusetts Avenue NW, 20001||376,958||2016|
|2001 M Street||2001 M Street NW, 20036||285,000||2016|
|1800 K Street||1800 K Street NW, 20006||217,070||2016|
|Republic Square II||660 North Capitol Street NW, 20001||200,000||2016|
|900 Sixteenth Street||900 16th Street NW, 20006||127,600||2016|
Washington, DC - Green Office Space
While only 34% of Washington D.C. office buildings larger than 50,000 square feet are LEED-certified, that percentage is growing. As of mid-2017, approximately 9.5 million square feet of office space are in the process of obtaining LEED Certification, on all levels.
The U.S. Green Buildings Council is, itself, headquartered in Washington D.C., at 2101 L Street NW, which is a redeveloped Class A office property, originally built in 1975.
On a nationwide scale, certified and proposed LEED properties account for roughly 22% of total U.S. office inventory, across key metro markets in all 50 states. As major investors continue to pursue green certification for their assets, the green office trend advances upwards. With its sturdy historic architecture, the D.C. office market is prime for valuable redevelopment and asset repositioning projects.
The 2017 National Green Building Adoption Index looked at commercial office properties in 30 major U.S. markets and found that, including EPA Energy Star labeled-buildings, the percentage of green certification has increased from under 5% in 2005 to 38%, as of mid-2017. Washington D.C. placed eighth in this annual survey, for the third consecutive year.
Washington, DC's Top Office-Using Sectors
Because the governmental sector dominates one third of the region’s economy, the D.C. office market’s general stability and predictable long-term performance attract investors from around the world, making Greater D.C. the sixth-largest metropolitan economy in the U.S.
As it continues to diversify, the Washington D.C. office market welcomes and accommodates an ever-growing number of businesses that are not directly related to government, such as education, finance, law, media, tourism, technology, and scientific research.
- Education – Higher learning institutions, like the renowned University of the District of Columbia, George Washington University, Georgetown University and Howard University, greatly contribute to Washington D.C.’s high rate of office-using employment.
- Finance – The World Bank, the International Monetary Fund (IMF) and the Pan American Health Organization (PAHO) and Fortune 500 company The Carlyle Group are headquartered in the nation’s capital.
- Law – renowned law firms Latham & Watkins LLP, Hogan Lovells LLP and Paul Hastings LLP have major D.C. operations.
- Media – D.C. is home to National Geographic’s world headquarters, as well as Atlantic Media, and Interface Media Group.
- Technology and Scientific research – largest representatives in this sector include global technology innovator conglomerate Danaher Corp. and public utility and energy solutions company WGL Holdings, Inc.
- Total Population647,484
- Male Population(47.4 %) 306,674
- Female Population(52.6 %) 340,810
- Median Age33.70
- Average Household Income$107,594
- Median Household Income$70,848
- Median Income Under 25$30,822
- Median Income 25-44$84,667
- Median Income 45-64$71,544
- Median Income Over 65$47,763
- 16th Street Heights Demographics
- Adams Morgan Demographics
- American University Park Demographics
- Anacostia Demographics
- Capitol Hill Demographics
- Chinatown Demographics
- Columbia Heights Dc Washington Demographics
- Downtown Washington Demographics
- Dupont Circle Demographics
- Federal Triangle Demographics
- Foggy Bottom Demographics
- Forest Hills Demographics
- Friendship Heights Demographics
- Gallaudet Demographics
- Georgetown Demographics
- Glover Park Demographics
- Judiciary Square Demographics
- Logan Circle Demographics
- Mt Vernon Triangle Washington Demographics
- Navy Yard Demographics
- Near Northeast Demographics
- Palisades Demographics
- Penn Quarter Demographics
- Shaw Demographics
- Southwest Waterfront Demographics
- U Street Washington Demographics
- Waterfront Washington Demographics
- West End Washington Demographics
Newmark Knight Frank (NKF) announced the signing of a 27,912-square-foot lease with Unity Health Care at the Federal Gateway building in Southeast Washington, D.C. The deal that NKF closed on behalf of property owner WC Smith keeps the Navy Yard office building at 100% occupancy, as it places th...
The past few decades have seen commercial real estate become the fourth asset class, joining stocks, bonds, and cash on the radar of institutional investors. A 2015 NAIOP analysis set out to backtrack the path of CRE from alternative investment status to trustworthy portfolio asset, while provid...