Leasing activity wanes amid layoffs from some of Northern Virginia’s most prolific industry sectors

Northern Virginia office leasing activity slowed in the first quarter of 2022 ending at 1.7 million square feet (msf). This slowdown in leasing activity follows one of the most robust quarters the market had seen throughout the pandemic, ending 50% lower than the previous quarter although roughly the same amount of leasing activity reported a year ago. The TAMI (technology, advertising, media and information) sector, which historically provides Northern Virginia the majority of its net new leases, slowed in Q1 amid economic uncertainty and mass layoffs. Renewals replaced the gap left behind by both the TAMI sector and new leases as occupiers choose to remain in place for the foreseeable future. Renewals made up 71.1% of leasing activity this quarter with Northrop Grumman having the largest leases totaling 337,226 square feet (sf) at 45101, 45201, and 45301 Warp Drive in Loudoun County.

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