Flight to quality persists in the Washington, DC office market
A building scoring model reveals that buildings with scores below 70 experience a significantly slower leasing velocity compared to pre-COVID levels.
The scoring model presented in the graph uses a 0-100 scale to evaluate office buildings in Washington, DC, based on three key factors.
- The Rent Score, which accounts for 50% of the total score, reflects current asking rents.
- The Building Composition Score, contributing 30%, assesses the quality and design of the building itself.
- The Amenities Score, representing 20%, focuses on the availability of walkable retail options nearby.
This approach provides a more nuanced and comprehensive analysis of the market compared to the traditional Trophy-C grading system. The data shows that, in 2024, buildings with scores of 70 or lower have seen significantly fewer leases signed compared to pre-COVID levels. One possible explanation is that tenants are increasingly prioritizing higher-quality spaces to help attract employees back to the office.
November 22, 2024
