MARKET TAKEAWAYS
Technology sector transactions totaled 2.2 million square feet in 2020 across the DC Metro Region markets. Nearly half (46.1%) of that activity was comprised of new leases which created much-needed growth within the market.
The DC metro region is well-poised to remain a growing tech hub due to its highly educated workforce and incoming talent supply pipeline from the numerous colleges within the area. Companies also find the accessibility to public transportation, proximity to airports and a diverse stock of housing appealing.
Microsoft’s new 396,740-square-foot lease at 11955 Freedom Drive in Reston Town Center was the largest transaction in 2020 which is unsurprising as the tech industry has withstood the volatility of the pandemic with many companies experiencing an uptick in the need for their business.
Large tech companies are demonstrating confidence in the future of the physical workplace, and are looking past the public health crisis to transition back to the office; however, tech demand will not likely be enough to suppress rising availability, which will continue to escalate in 2021.