Northern Virginia office market reports

Q2 2024

As we reach the halfway point of 2024, the Northern Virginia office market is still facing an uphill climb to reach the levels of sales and leasing velocities from pre-pandemic times. While the future of office utilization is still in flux, investors are slowly coming back into the market, partially due to the financial aspects of potential deals starting to fit their budgets, in conjunction with falling valuations of office properties. For investment activity, owner-occupier sales still account for more than half of the buyer profiles year to date. Legal Services and Aerospace/Defense companies have seen growth in their job postings, positioning Northern Virginia well for new companies entering the market and those that have been in the region to help spur the local economy. Venture capital investment has continued to stay strong this quarter, with many companies restructuring their debt in order to make new deals both in the realm of commercial real estate and the local economy as a whole.

12.1 %

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.

$ 1.98 B

Amount raised for debt financing

Venture capital raised for debt funding in Northern Virginia has surged in the last quarter, which should significantly benefit office leasing. With this influx, tenants and landlords can adjust their financial strategies, sign leases, and improve lease packages for prospective tenants in the market.

$ 423 M

Investment 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, investors are finding more opportunities to purchase buildings at a price point that makes financial sense for them.

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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.