Despite uptick in Q1 leasing activity, overall office demand remains weak

The Washington D.C. office market saw an increase in Q1 2024 leasing activity, which totaled 1.7 million square feet (msf), compared to 1.3 msf in the previous quarter. The Q1 leasing activity was dominated by Technology, Advertising, Media, Information (TAMI) and Government, as well as the Legal sector. The largest lease this quarter was executed by The Washington Post, who signed a 297,176-square foot renewal at 1301 K Street NW. Despite the quarterly uptick in leasing activity, overall volume is below the five-year average and availability is at a historic high. Tenant flightto-quality continues to characterize the office market, with trophy buildings reporting lower availability rates, while non-trophy properties still lag in performance.

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