DC Development Report

Sector: Office

DC’s current office market expansion is driven almost entirely by the private sector. The relocation of tenants from Maryland and Virginia also help stimulate DC’s office growth. Tenants in the financial activities, professional and business services, and information sectors brought a combined 3,300 new positions to DC during the 12-month period ending September 2018.

Office Inventory

Square Feet (Q3 2018) 1

Net Absorption

Square Feet (Q4 2017-Q3 2018) 1

Office Vacancy Rate

Q3 2018 1

Overall Average Asking Rate

Q3 2018, FS 1

[{"data":[["2011",1600],["2012",-3900],["2013",-3600],["2014",-7700],["2015",1100],["2016",2400],["2017",-1100],["Q1-Q3 2018",-3500]],"name":"Federal Government"},{"data":[["2011",700],["2012",500],["2013",700],["2014",1000],["2015",0],["2016",200],["2017",100],["Q1-Q3 2018",1600]],"name":"Financial Activities"},{"data":[["2011",-400],["2012",-800],["2013",-500],["2014",200],["2015",0],["2016",-100],["2017",800],["Q1-Q3 2018",1100]],"name":"Information"},{"data":[["2011",2700],["2012",3700],["2013",1800],["2014",1400],["2015",4600],["2016",3000],["2017",1600],["Q1-Q3 2018",600]],"name":"Professional & Business Services"}]
[{"data":[0.5,0.8,0.2,0.4,1.4,0.4,0,0.5,1.1,2.6,0.4,0.4,0.2,0.9,0.7,0.3,0.2,0.2],"name":"Government"},{"data":[3.3,3.3,2.7,4.9,2.8,3.8,4.7,3,0.9,0.7,1.3,1.3,1.1,3,1.8,2.7,2.5,0.5],"name":"Private"}]
[{"data":[0,0,1.2,0,1.5,0.6,1.2,0.4,0.7,0.8,0.9,2.1,1,0.1,0.3,0.5,0.8,0.3,0.4],"name":"Government"},{"data":[3,2.8,2,3.6,4.4,3.7,2,5.6,2.7,1.2,0.8,2,0.9,0.6,2,1.3,4.2,2.2,1.1],"name":"Private"}]

Top Office Projects Completed (Q3 2017 – August 2018)

 ProjectWardLocationDeveloper(s)Office SFEst. Value ($M) (1)Est. Delivery
1Midtown Center
21150 15th St., NW
Carr Properties
821,000
$350Q2 18
2Alexander Court22001 K St., NWRockrose Development
780,000
Q2 18
3The Wharf (Phase I)
6Southwest Waterfront
Hoffman-Madison Waterfront
500,000$1,326
Q4 17
4Consumer Financial Protection Bureau HQ Modernization
21700 G St., NW
General Services Administration481,404
$139
Q4 17
5200 Massachusetts Avenue
2200 Massachusetts Ave., NW
Property Group Partners
381,746
$200Q2 18
62112 Pennsylvania Avenue
22112 Pennsylvania Ave., NW
Skanska USA
230,000
$126Q2 18
799 M Street
6
1st & M St., SE
Skanska USA
220,000
$116
Q2 18
8700 Penn
6700 Pennsylvania Ave., SE
Stanton Development / Eastbanc / Jarvis Company / Dantes Partners / Clark Enterprises
150,000
$227Q4 17
9U.S. Department of Commerce - Herbert Hoover Building (Ph IV)
21401 Constitution Ave., NW
General Services Administration
109,825
$83Q3 18
10901 4th Street
6901 4th St., NW
The Bar Association of the District of Columbia
89,700
$70
Q1 18
1) may include non-office components & pipeline values may include additional phases ($ in millions)

Top Office Projects Under Construction

 ProjectWardLocationDeveloper(s)Office SFEst. Value ($M) (1)Delivery
11655 New York Avenue6655 New York Ave., NWDouglas Development Corp. / Brookfield 653,474 $185Q4 18
12Sentinel Square (Phase III)
645 L St., NE
Trammell Crow Company
545,000
$250Q1 20
13250 Massachusetts Avenue2250 Massachusetts Ave., NWProperty Group Partners 507,764$275Q3 19
14Four Constitution Square6150 M St., NEStonebridgeCarras, LLC505,000$250Q2 19
152050 M Street22050 M St., NWTishman Speyer353,200Q4 19
16Harry S. Truman Building Modernization (Ph IC)22201 C St., NWGeneral Services Administration290,536$97Q3 18
17Center Building (DHS HQ)82110 Pennsylvania Ave., NWGeneral Services Administration284,000$155Q1 19
18One Freedom Plaza
21301 Pennsylvania Ave., NW
Quadrangle Development
270,040
Q1 19
191900 N
21900 N St., NW
JBG Smith
259,000
$225
Q2 20
20L'Enfant Plaza Office - Southeast
6
500 L'Enfant Plz., SW
JBG Smith
215,185
$75Q4 18
1) may include non-office components & pipeline values may include additional phases ($ in millions)

Top Office Projects Pipeline (Near Term)

 ProjectWardLocationDeveloper(s)Office SFEst. Value ($M) (1)Delivery (2)
21The Wharf (Phase II)6Southwest WaterfrontHoffman-Madison Waterfront547,504$1,2002022
232100 Pennsylvania Avenue22100 Pennsylvania Ave., NWBoston Properties /
George Washington University
423,5622022
22Market Terminal
5300, 325, 350 Morse St., NE
Douglas Development Corporation / Kettler / Carr Enterprises
339,042
2020
24Penn Quarter Place
2600 E St., NW
S.C. Herman & Associates
325,000
2020/21
251700M21700 M St., NWJBG Smith
315,435
2020
26111 Massachusetts Avenue
6111 Massachusetts Ave., NW
Douglas Development Corporation
318,708
$742023
27Reunion Square (Building 4)
8Shannon Place & W St., SE
Four Points / Curtis Development
281,242
2021
28250 M at Canal Park
6250 M St., SE
WC Smith
175,000

$1252021
29Saint Elizabeths East (Phase I)
8Saint Elizabeths East Campus
Redbrick / Gragg Cardona Partners / Flaherty & Collins / AEDC / DMPED
170,000
$3000
30300 7th Street
6300 7th St., SW
Urban Atlantic
143,414
2021
1) may include non-office components & pipeline values may include additional phases ($ in millions)

2) delivery date may reflect phase I delivery or final phase delivery

1. REIS, Delta Associates; October 2018 (does not include owner-occupied buildings)
F = Forecast based on targeted delivery dates of projects under construction as of August 2018 (WDCEP does not forecast groundbreakings).