D.C. office dynamics slow slightly as leasing volumes fall, and availability rises

The Washington D.C. office market experienced a decrease in leasing activity in Q3 2024 with volume totaling 1.5 million square feet (msf), compared to 2.1 msf in the previous quarter and 2.3 msf reported a year ago. In the second quarter, there were a number of transactions in excess of 100,00 square feet (sf) while, in the third quarter, leasing activity was dominated by smaller transactions in the financial services, insurance, and government sectors. Most notable was Fannie Mae with the largest deal of the quarter which executed a renewal at 1100 15th St NW for 340,000 sf. This was followed by two GSA deals: Court Service and Offender Supervision Agency (COSA) and Pretrial Services Agency (PSA), as well as the U.S. Department of Treasury with each signing deals at 501 3rd St NW for 198,561 sf and at 1575 Eye St NW for 65,000 sf, respectively.

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