Tenant property class and size changes in the DC Metro area
Tenants in the DC Metro Area post-Covid have to upgraded their property class by 25% as the push of flight to quality continues. Additionally, 31% of tenants have increased their office space since 2020, 33% have reduced their footprint, while 35% maintained it at the same level.
Post-COVID, tenants have faced tough decisions about their office spaces, including whether to upgrade to higher-quality buildings or move to lower class buildings for more cost-effective reasons. Another key consideration has been adjusting the size of their leases—whether to expand or contract.
Since Q2 of 2020, 62% of tenants have not changed their property class, while 25% have opted to upgrade. The trend toward "flight to quality" remains significant, with many tenants prioritizing building amenities to encourage employees to return to the office. Additionally, 31% of tenants have increased their office space since 2020, 33% have reduced their footprint, while 35% maintained it at the same level.
August 12, 2024
