Employment services job growth increased 1.1% in the District of Columbia during the 12 months ending November 2015, which is even with the 10-year annual average of 1.1%. Given this, office demand was healthy at 841,000 SF during 2015, but still below the 10-year annual average of 1.3 million SF. Net absorption in 2015 was notably better compared to the 271,000 SF achieved in 2014. Trends such as densification and consolidation continue to challenge the market. Most tenants in the market demand Class A space, which is putting pressure on the Class B and C market as there is not enough job growth yet to backfill this vacated space.
Source : BNP Paribas Real Estate