Office space availability up in D.C.
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The rate of office space available for lease in D.C. between the first quarters of 2020 and 2023 increased from nearly 16% to 19.2%, according to data from CoStar.
- That’s more than the national rate of 16.4%, which is a record high.
Why it matters: Remote work is already crushing the office market, and the data is a sign that the distress is going to get worse. Vacancies, already at historic highs, will likely go higher, writes Axios Markets reporter Emily Peck.
Details: Looking at office availability is different from looking at office vacancy rates. Availability doesn't just look at empty offices. It includes occupied office space where the tenant notified the landlord they won't be renewing.
- And, crucially, availability takes into account leased office space where a tenant is trying to sublet the office.
For example, a company that no longer needs all the floors it leased before COVID will try to sublet the space to someone else. That's happening a lot now.