Leasing activity rebound led by uptick in renewal deals

Leasing activity in Q3 2024 for Northern Virginia rebounded from last quarter increasing by 30.5%, ending at 2.4 million square feet (msf). This represents a substantial rise from the 1.6 msf recorded a year ago, driven in part by a surge in lease renewal activity. A significant number of businesses are opting to stay in place by renewing their existing leases rather than relocating. This preference for lease extensions has become a prevailing trend in the market, with renewals now accounting for over 89.4% of total volume for transactions above 10,000 square feet (sf). The largest lease of the quarter was a renewal for Bechtel Corporation for 289,380 sf at 12011 Sunset Hills Road in Reston.

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