Activity in Northern Virginia outpaces the District; construction tepid despite demand for new space
Northern Virginia saw little change in market dynamics through mid-year with overall availability sitting at 21.1%, a 70-basis-point drop year over year. This is still exceptionally high with options plentiful. After a sluggish start to the year, leasing swelled in the second quarter with 3.5 million square feet (msf) leased – outpacing the amount seen in the District. Tenants are on the move as relocations, expansions and new market entrants accounted for 68.3% of quarterly activity. However, even as demand increases, options in new product remain limited as construction activity has become stagnant with no new groundbreakings or deliveries occurring until Q3 when the Loft (1640 Boro Place) is expected to complete.