Northern Virginia office market reports

Q3 2024

As we approach the end of 2024, the Northern Virginia office market continues to face challenges in achieving pre-pandemic sales and leasing levels. While the future of office space usage remains uncertain, investors are gradually re-entering the market, drawn by more favorable financial conditions and declining office property valuations. So far this year, owner-occupier sales make up over half of buyer profiles. The Legal Services and Aerospace/Defence sectors have seen an uptick in job postings, positioning Northern Virginia as an attractive destination for new businesses and benefiting the local economy. Additionally, venture capital investment remains robust this quarter, with many companies restructuring their debt to pursue new opportunities in both commercial real estate and the broader economy.

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.

10.42 %

Percentage of leases signed by tech companies

Tech companies have been large drivers of the Northern Virginia office market for some time, but with tech companies largely adopting hybrid or remote working models, the share of total leasing attributable to tech in Q3 was the lowest it has been since before 2019.

$ 806 M

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, investors are seeing more opportunities to buy buildings at a price point that can make sense for them financially. Note, this figure includes user sales, which have become somewhat of a common theme in 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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