COVID-19 uncertainty will test Northern Virginia market fundamentals

The COVID-19 crisis rapidly swept the globe forcing the U.S. to begin taking precautions, and by March 30th, Governor Ralph Northam of Virginia issued a 'stay-at-home' order for the state. While these unforeseen circumstances have resulted in an economic downturn without a clear trajectory, the underlying strengths of the Northern Virginia office market should provide some cushion and sustained leasing activity. The market benefits from the presence of the federal government and its related sectors, in addition to legal, education and medical occupiers, which insulate the region compared to other markets. While the duration that social distancing requirements will be in place is unknown, an economic interruption may create opportunities for tenants in providing additional space options and an increase to already generous concessions.

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