Ongoing pandemic disruption begins to weaken Northern Virginia’s resiliency

The effects of the COVID-19 pandemic have finally begun to shake the resilient Northern Virginia office market with availability rising 110 basis points (bps) to 21.5% in Q3. This increase in availability was partially due to more than 500,000 square feet (sf) of sublease space being added to the market over the quarter. Close to 3.0 million square feet (msf) of sublease space is now available as organizations reevaluate occupancy requirements and focus on reducing real estate costs. A prime example of this change in needs is Walmart’s surprise-decision to sublease the entire 162,357sf building at 2245 Monroe Street in Herndon that they just leased in Q2 in order to continue working remotely. While remote work has worked better than expected thus far through the pandemic, company culture and innovation can be negatively impacted, and occupiers must decide what is sustainable for them before signing any long-term commitments.

Read the full report