Northern Virginia office market reports

Q4 2024

As we round off 2024, the Northern Virginia office market saw an uptick in investment sales compared to the prior two quarters but still total sale volume for the year remains well below pre-pandemic numbers. While it seems as though the tide hasn’t completely turned back in a positive manner for office space there are some highlights that could give landlords and tenants some hope looking forward. Concessions have seemed to have stabilized from their rapid rise over the past few years as well as average term length for Q4 has seen an increase to 75 months which shows that tenants are showing belief in the future climate of the overall market. Institutional investors made up 57% of the seller profile for the year, largely due to PGIM and TIAA disposing of nearly $350M in assets. This shouldn’t come as a shock as these owners have been trying to restructure their debt after trying to keep their heads above water post-pandemic.

11.95 %

Concessions as a percentage of overall lease value

After a spike in lease concessions in late 2021, they are now stabilizing relative to rent prices. This stability benefits the leasing market by helping prospective tenants gauge appropriate concessions and enabling landlords to forecast and budget more accurately.

21.43 %

Percentage of leases signed by tech companies

Tech companies have been large drivers of the Northern Virginia office market for some time. Despite a decrease in the share of signed leases to tech tenants in Q2 2024, leasing activity for tech tenants made a significant recovery, relative to the market.

$ 1.22 B

YTD sales volume

Office investments in the area saw an uptick in volume compared to last quarter. As the value of office properties continues to decline, opportunistic investors and users alike are capitalizing on a lower pricing environment to enter or expand within Northern Virginia.

Your source for the latest Northern Virginia office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Washington, DC Metro area. Avison Young advisors look at Northern Virginia commercial real estate activities and the latest Northern Virginia statistics to provide you expert market research on Northern Virginia's office properties.

Explore different topics like the latest office market pricing trends and analysis of Northern Virginia's current office real estate market conditions. Gain a better understanding of Northern Virginia’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Northern Virginia's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Northern Virginia.

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