Demand softens after three consecutive quarters of robust leasing

Leasing volume slowed across Northern Virginia in the first quarter of 2022 ending at 1.7 million square feet (msf) of activity. The market had previously recorded three successive quarters of increased leasing activity above 2.0 msf in 2021. This quarter that trend ceased, and leasing activity dropped by 25.7% quarter over quarter as occupiers continue to delay making office decisions due to pandemic concerns. While some industries such as the government, and associations and non-profits, dropped in total leasing activity, the technology, advertising, media and information (TAMI) industry continues to remain active and provide net new growth to the market, comprising over 19% of the total leases signed in Q1. The largest transaction of the quarter was a renewal at 1200 S Hayes Street where RAND Corporation took 126,636 square feet (sf).

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