Leasing activity increases despite worries of economic downturn in 2023

In Q4 2022, leasing activity increased to its highest quarterly level since before the pandemic at 3.5 million square feet (msf). This surpassed the 5-year quarterly leasing activity average of 2.3 msfdespite economic uncertainty which has become top of mind for occupiers recently. Total leasing activity for 2022 ended at 10.0 msf, up from 8.6 msfreported in 2021 and the highest reported since before the pandemic. This sharp rise in leasing activity in Q4 2022 was primarily due to the US Patent and Trademark Office (USPTO) renewing for 1.6 msfacross three buildings located at 500, 501, and 600 DulanyStreet in Alexandria. This is the largest transaction the Northern Virginia market has seen since the 2018 Fannie Mae lease in Reston, however, USPTO will be reducing its total real estate footprint by roughly 33%, a trend seen in many of renewals throughout Northern Virginia.

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