July 31, 2020, 8:56 AM
Net office leasing in the D.C. area turned negative during the second quarter, and office vacancies rose, even as record office building construction is underway in the region.
A second quarter report from Delta Associates also reports a pullback in new leasing activity.
The Washington area’s direct vacancy rate, excluding owner-occupied buildings, rose to 17.2% during the second quarter.
During the quarter, there was a net total of negative 344,000 square feet of office space absorption. That’s a nearly 1 million square foot decline from the 602,000 square feet absorbed in the first quarter.