First Quarter Office Report - EDGE Commercial Real Estate

Transcription

Unrelenting Passion
to be the
BEST
EDGE
IS OUR E X P E R I E N C E
YOUR
First Quarter
Market Report
Wa s h i n g t o n D . C . A r e a
w w w. e d g e c r e . c o m
Datasource: CoStar
The CoStar
Office Report
F I R S T
Q U A R T E R
2 0 1 4
Washington, D.C. Office Market
FIRST QUARTER 2014 – WASHINGTON, D.C.
Table of Contents
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A
Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B
Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C
Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Inventory & Development Analysis
Select Top Deliveries
Select Top Under Construction Properties
Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figures at a Glance by Class & Market
Figures at a Glance by Class & Submarket
Figures at a Glance Grouped by CBD vs Suburban
Historical Figures at a Glance
Leasing Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Select Top Lease Transactions
Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Sales Activity Analysis
Select Top Sales Transactions
Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Alexandria/I-395 Area Market
Bethesda/Chevy Chase Market
Capitol Hill Area Market
Downtown DC Market
Dulles Corridor Market
E Prince Georges County Market
East Falls Church Market
Frederick Market
Georgetown/Uptown Market
Greater Fairfax County Market
I-270 Corridor Market
Leesburg/Route 7 Corridor Market
Manassas/Route 29/I-66 Market
N Prince Georges County Market
Northeast/Southeast Market
R-B Corridor Market
S Prince Georges County Market
SE Fairfax County Market
SE Montgomery County Market
Winchester City Market
Woodbridge/I-95 Corridor Market
©2014 COSTAR GROUP, INC.
THE COSTAR OFFICE REPORT
A
WASHINGTON, D.C. – FIRST QUARTER 2014
Methodology
The CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar
Group’s entire database of existing and under construction office buildings in each metropolitan area.
Included are office, office condominium, office loft, office medical, all classes and all sizes, and both
multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's national
database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental
rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate.
For information on subscribing to CoStar’s other products and services, please contact us at
1-877-7COSTAR, or visit our web site at www.costar.com
© Copyright 2012 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the
information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or
completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or
warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
CoStar Group, Inc.
1331 L ST NW • Washington, DC 20005• (800) 204-5960 • www.costar.com • NASDAQ: CSGP
B
Terms & Definitions
Availability Rate: The ratio of available space to total rentable
space, calculated by dividing the total available square feet by the
total rentable square feet.
Deliveries: Buildings that complete construction during a specified
period of time. In order for space to be considered delivered, a
certificate of occupancy must have been issued for the property.
Available Space: The total amount of space that is currently
being marketed as available for lease in a given time period. It
includes any space that is available, regardless of whether the
space is vacant, occupied, available for sublease, or available at
a future date.
Delivery Date: The date a building completes construction and
receives a certificate of occupancy.
Build-to-Suit: A term describing a particular property, developed
specifically for a certain tenant to occupy, with structural features,
systems, or improvement work designed specifically for the needs
of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long
term lease on the space.
Direct Space: Space that is being offered for lease directly from
the landlord or owner of a building, as opposed to space being
offered in a building by another tenant (or broker of a tenant)
trying to sublet a space that has already been leased.
Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.
Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating
income and the current market value of a particular property.
The Cap Rate is calculated by dividing the annual net operating
income by the sales price (or asking sales price).
CBD: Abbreviation for Central Business District. (See also:
Central Business District)
Central Business District: The designations of Central Business
District (CBD) and Suburban refer to a particular geographic area
within a metropolitan statistical area (MSA) describing the level
of real estate development found there. The CBD is characterized
by a high density, well organized core within the largest city of a
given MSA.
Class A: A classification used to describe buildings that generally
qualify as extremely desirable investment-grade properties and
command the highest rents or sale prices compared to other
buildings in the same market. Such buildings are well located
and provide efficient tenant layouts as well as high quality, and in
some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects.
These buildings contain a modern mechanical system, and have
above-average maintenance and management as well as the best
quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought
by investors willing to pay a premium for quality.
Class B: A classification used to describe buildings that generally
qualify as a more speculative investment, and as such, command
lower rents or sale prices compared to Class A properties. Such
buildings offer utilitarian space without special attractions, and
have ordinary design, if new or fairly new; good to excellent
design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants.
They are less appealing to tenants than Class A properties, and
may be deficient in a number of respects including floor plans,
condition and facilities. They lack prestige and must depend
chiefly on a lower price to attract tenants and investors.
Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and
command lower rents or sale prices compared to other buildings
in the same market. Such buildings typically have below-average
maintenance and management, and could have mixed or low
tenant prestige, inferior elevators, and/or mechanical/electrical
systems. These buildings lack prestige and must depend chiefly
on a lower price to attract tenants and investors.
Construction Starts: Buildings that began construction during a
specific period of time. (See also: Deliveries)
Contiguous Blocks of Space: Space within a building that is, or is
able to be joined together into a single contiguous space.
Developer: The company, entity or individual that transforms raw
land to improved property by use of labor, capital and entrepreneurial efforts.
Existing Inventory: The square footage of buildings that have
received a certificate of occupancy and are able to be occupied
by tenants. It does not include space in buildings that are either
planned, under construction or under renovation.
Flex Building: A type of building designed to be versatile, which
may be used in combination with office (corporate headquarters),
research and development, quasi-retail sales, and including but
not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the
rentable area being used as office space, have ceiling heights of 16
feet or less, and have some type of drive-in door, even though the
door may be glassed in or sealed off.
Full Service Rental Rate: Rental rates that include all operating
expenses such as utilities, electricity, janitorial services, taxes and
insurance.
Gross Absorption: The total change in occupied space over a
given period of time, counting space that is occupied but not
space that is vacated by tenants. Gross absorption differs from
leasing Activity, which is the sum of all space leased over a certain
period of time. Unless otherwise noted Gross Absorption includes
direct and sublease space.
Growth in Inventory: The change in size of the existing square
footage in a given area over a given period of time, generally due
to the construction of new buildings.
Industrial Building: A type of building adapted for such uses as
the assemblage, processing, and/or manufacturing of products
from raw materials or fabricated parts. Additional uses include
warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling,
or distributing product.
Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that
represents the interests of the owner/landlord is referred to as the
Landlord Rep.
Leased Space: All the space that has a financial lease obligation.
It includes all leased space, regardless of whether the space is
currently occupied by a tenant. Leased space also includes space
being offered for sublease.
Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building
or market in a given period of time. It includes direct leases,
subleases and renewals of existing leases. It also includes any
pre-leasing activity in planned, under construction, or under
renovation buildings.
Market: Geographic boundaries that serve to delineate core areas
that are competitive with each other and constitute a generally
accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic
designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further
subdivided into Submarkets. (See also: Submarkets)
C
Multi-Tenant: Buildings that house more than one tenant at a
given time. Usually, multi-tenant buildings were designed and
built to accommodate many different floor plans and designs for
different tenant needs. (See also: Tenancy).
Net Absorption: The net change in occupied space over a given
period of time. Unless otherwise noted Net Absorption includes
Net Rental Rate: A rental rate that excludes certain expenses that
a tenant could incur in occupying office space. Such expenses
are expected to be paid directly by the tenant and may include
janitorial costs, electricity, utilities, taxes, insurance and other
related costs.
New Space: Sometimes called first generation space, refers to
space that has never been occupied and/or leased by a tenant.
Occupied Space: Space that is physically occupied by a tenant.
It does not include leased space that is not currently occupied
by a tenant.
Office Building: A type of commercial building used exclusively
or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes
have other associated uses within part of the building, i.e., retail
sales, financial, or restaurant, usually on the ground floor.
Owner: The company, entity, or individual that holds title on a
given building or property.
Planned/Proposed: The status of a building that has been
announced for future development but not yet started
construction.
Preleased Space: The amount of space in a building that has been
leased prior to its construction completion date, or certificate of
occupancy date.
Price/SF: Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable Building Area
(RBA).
Property Manager: The company and/or person responsible for
the day-to-day operations of a building, such as cleaning, trash
removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and
electrical systems, are functioning properly.
Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner.
Quoted rental rates may differ from the actual rates paid by
tenants following the negotiation of all terms and conditions in
a specific lease.
RBA: Abbreviation for Rentable Building Area. (See also:
Rentable Building Area)
Region: Core areas containing a large population nucleus, that
together with adjacent communities have a high degree of economic and social integration. Regions are further divided into
market areas, called Markets. (See also: Markets)
Relet Space: Sometimes called second generation or direct space,
refers to existing space that has previously been occupied by
another tenant.
Rentable Building Area: (RBA) The total square footage of a
building that can be occupied by, or assigned to a tenant for the
purpose of determining a tenant’s rental obligation. Generally
RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.
Rental Rates: The annual costs of occupancy for a particular
space quoted on a per square foot basis.
Sales Price: The total dollar amount paid for a particular property
at a particular point in time.
Sales Volume: The sum of sales prices for a given group of buildings in a given time period.
D
Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.
SF: Abbreviation for Square Feet.
Single-Tenant: Buildings that are occupied, or intended to be
occupied by a single tenant. (See also: Build-to-suit and Tenancy)
Sublease Space: Space that has been leased by a tenant and is
being offered for lease back to the market by the tenant with
the lease obligation. Sublease space is sometimes referred to as
sublet space.
Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each
other and constitute a generally accepted primary competitive
set, or peer group. Submarkets are building type specific (office,
industrial, retail, etc.), with distinct boundaries dependent on
different factors relevant to each building type. Submarkets are
non-overlapping, contiguous geographic designations having a
cumulative sum that matches the boundaries of the Market they
are located within (See also: Market).
Suburban: The Suburban and Central Business District (CBD)
designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all
office inventory not located in the CBD. (See also: CBD)
Tenancy: A term used to indicate whether or not a building is
occupied by multiple tenants (See also: Multi-tenant) or a single
tenant. (See also: Single-tenant)
Tenant Rep: Tenant Rep stands for Tenant Representative. In a
typical lease transaction between an owner/landlord and tenant,
the broker that represents the interests of the tenant is referred to
as a Tenant Rep.
Time On Market: A measure of how long a currently available
space has been marketed for lease, regardless of whether it is
vacant or occupied.
Under Construction: The status of a building that is in the process
of being developed, assembled, built or constructed. A building is
considered to be under construction after it has begun construction and until it receives a certificate of occupancy.
Vacancy Rate: A measurement expressed as a percentage of the
total amount of physically vacant space divided by the total
amount of existing inventory. Under construction space generally
is not included in vacancy calculations.
Vacant Space: Space that is not currently occupied by a tenant,
regardless of any lease obligation that may be on the space.
Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for
by a tenant but not occupied by that tenant, would be considered
vacant space. Likewise, space that has been leased but not yet
occupied because of finish work being done, would also be considered vacant space.
Weighted Average Rental Rate: Rental rates that are calculated by
factoring in, or weighting, the square footage associated with each
particular rental rate. This has the effect of causing rental rates
on larger spaces to affect the average more than that of smaller
spaces. The weighted average rental rate is calculated by taking
the ratio of the square footage associated with the rental rate on
each individual available space to the square footage associated
with rental rates on all available spaces, multiplying the rental rate
by that ratio, and then adding together all the resulting numbers.
Unless specifically specified otherwise, rental rate averages include
both Direct and Sublet available spaces.
Year Built: The year in which a building completed construction
and was issued a certificate of occupancy.
YTD: Abbreviation for Year-to-Date. Describes statistics that are
cumulative from the beginning of a calendar year through whatever time period is being studied.
OVERVIEW
Washington’s Vacancy Increases to 14.4%
Net Absorption Negative (834,151) SF in the Quarter
T
he Washington Office market ended the first quarter 2014
with a vacancy rate of 14.4%. The vacancy rate was up
over the previous quarter, with net absorption totaling
negative (834,151) square feet in the first quarter from suburban
MD and NoVa space give-backs and consolidations; while the
CBD saw a slight positive bump in positive absorption. Vacant
sublease space increased in the quarter, particularly in the CBD,
ending the quarter at 3,734,026 square feet. Rental rates ended
the first quarter at $34.40, an increase over the previous quarter,
but a mixed bag with a jump in rates in the CBD by over $1 PSF
and a decline in the suburban areas by $0.30 PSF. A total of five
buildings delivered to the market in the quarter totaling 745,810
square feet, with 6,091,677 square feet still under construction at
the end of the quarter.
Absorption
Net absorption for the overall Washington office market
was negative (834,151) square feet in the first quarter 2014. That
compares to positive 308,855 square feet in the fourth quarter
2013, positive 937,314 square feet in the third quarter 2013, and
positive 637,204 square feet in the second quarter 2013.
Tenants moving out of large blocks of space in 2014 include:
Lockheed Martin Corporation moving out of 286,956 square feet
at three Rockville locations to consolidate their operations to their
Gaithersburg, MD campus, reducing their footprint by almost
390,000 square feet in the area -part of their company-wide initiative to shrink their footprint by 2.9 million square feet by the
end of 2014. Defense contractor Harris Corporation consolidated
from five locations into 161,359 square feet at Arboretum II North Bldg, shrinking their footprint by approximately 40,000
Vacancy Rates by Class
SF, partially for real estate savings as well as to meet the federal
government’s Sensitive Compartmentalized Information Facility
(SCIF) requirements.
Tenants moving into large blocks of space in 2014 include:
Meso Scale Diagnostics, LLC expanding into 104,764 square
feet at 1701 Research Blvd, a building adjacent to their existing
operations; CustomInk moved and expanding into 72,811 square
feet, (a 150% space increase) to One Mosaic, after a 50% revenue growth in 2013; and Stratford University expanding 59,779
square feet to a new location at the Alexandria Tech Center 3
building
The Class-A office market recorded net absorption of negative (1,009,151) square feet in the first quarter 2014, compared to
positive 302,836 square feet in the fourth quarter 2013, positive
886,484 in the third quarter 2013, and positive 696,714 in the
second quarter 2013.
The Class-B office market recorded net absorption of positive 133,509 square feet in the first quarter 2014, compared to
negative (11,466) square feet in the fourth quarter 2013, positive
136,990 in the third quarter 2013, and negative (208,672) in the
The Class-C office market recorded net absorption of
positive 41,491 square feet in the first quarter 2014 compared to
positive 17,485 square feet in the fourth quarter 2013, negative
(86,160) in the third quarter 2013, and positive 149,162 in the
Net absorption for Washington’s central business district
was positive 260,619 square feet in the first quarter 2014. That
1993-2014
A
B
C
Total Market
18%
16%
Vacancy Rate
14%
12%
10%
8%
6%
4%
2%
0%
1993 1993 1994 1995 1996 1996 1997 1998 1999 1999 2000 2001 2002 2002 2003 2004 2005 2005 2006 2007 2008 2008 2009 2010 2011 2011 2012 2013 2014
4q
3q
2q
1q
4q
1q
2q
1q
3q
2q
4q
3q
2q
1q
4q
3q
2q
1q
1q
4q
3q
2q
1q
4q
3q
2q
1q
4q
3q
Source: CoStar Property®
Absorption & Deliveries
Past 7 Quarters
U.S. Vacancy Comparison
Past 7 Quarters
1
OVERVIEW
2013, positive 456,147 in the third quarter 2013, and positive
535,825 in the second quarter 2013.
Net absorption for the suburban markets was negative
(1,094,770) square feet in the first quarter 2014. That compares
to positive 11,274 square feet in fourth quarter 2013, positive
2002
4q
Past 7 Quarters
Washington, D.C.
United States
16.0%
14.0%
12.0%
Vacancy Rate
B
Vacancy
The office vacancy rate in the Washington market area
increased to 14.4% at the end of the first quarter 2014. The
vacancy rate was 14.1% at the end of the fourth quarter 2013,
13.8% at the end of the third quarter 2013, and 13.9% at the end
of the second quarter 2013.
Class-A projects reported a vacancy rate of 15.6% at the
end of the first quarter 2014, 15.0% at the end of the fourth
quarter 2013, 14.5% at the end of the third and second quarters
of 2013.
Class-B projects reported a vacancy rate of 14.1% at the end
Cof the Total
firstMarket
quarter 2014, 14.3% at the end of the fourth quarter
2013, 14.3% at the end of the third quarter 2013, and 14.4% at
the end of the second quarter 2013.
Class-C projects reported a vacancy rate of 7.2% at the end
of the first quarter 2014, 7.4% at the end of fourth quarter 2013,
The overall vacancy rate in Washington’s central business
district at the end of the first quarter 2014 remained flat from end
of fourth quarter 2013 at 10.1%. The vacancy rate was 9.9% at
the end of the third quarter 2013, and 10.1% at the end of the
The vacancy rate in the suburban markets increased to
2003 16.4%
2004 2005in2005
2008 2008
2013givebacks.
2014
2009largely
2010 2011
2011
the2006
first2007
quarter
2014
due
to2012
space
3q
2q
1q
4q
1q
3q
2q
4q
3q
2q
1q
4q
3q
2q
1q
The vacancy rate was 15.9% at the end of the fourth quarter
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Largest Lease Signings
The largest lease signings occurring in 2014 included: the
200,000-square-foot lease signed by Amazon.com at Ashburn
Crossing COPT Data Center Phase I in the Dulles Corridor
market; the 148,000-square-foot deal signed by National Center
for Health Statistics at Metro 4 in the N Prince George’s County
market; and the 143,116-square-foot lease signed by National
Labor Relations Board at 1015 Half St SE in the Capitol Hill
Area market.
Sublease Vacancy
The amount of vacant sublease space in the Washington
market increased to 3,734,026 square feet by the end of the first
quarter 2014, from 3,648,647 square feet at the end of the fourth
quarter 2013. There was 3,551,425 square feet vacant at the end
of the third quarter 2013 and 3,928,041 square feet at the end of
the second quarter 2013.
Washington’s Class-A projects reported vacant sublease
space of 2,825,294 square feet at the end of first quarter 2014, up
from the 2,639,649 square feet reported at the end of the fourth
quarter 2013. There were 2,506,665 square feet of sublease space
vacant at the end of the third quarter 2013, and 2,853,115 square
feet at the end of the second quarter 2013.
Class-B projects reported vacant sublease space of 883,204
square feet at the end of the first quarter 2014, down from the
985,326 square feet reported at the end of the fourth quarter
2013. At the end of the third quarter 2013 there were 992,912
square feet, and at the end of the second quarter 2013 there were
1,025,872 square feet vacant.
Class-C projects reported increased vacant sublease space
from the fourth quarter 2013 to the first quarter 2014. Sublease
vacancy went from 23,672 square feet to 25,528 square feet during that time. There was 51,848 square feet at the end of the third
quarter 2013, and 49,054 square feet at the end of the second
quarter 2013.
Sublease vacancy in Washington’s central business district
stood at 1,022,431 square feet at the end of the first quarter 2014.
It was 902,619 square feet at the end of the fourth quarter 2013,
908,384 square feet at the end of the third quarter 2013, and
1,063,031 square feet at the end of the second quarter 2013.
Sublease vacancy in the suburban markets ended the first
quarter 2014 at 2,711,595 square feet. At the end of the fourth
quarter 2013 sublease vacancy was 2,746,028 square feet, was
2,643,041 square feet at the end of the third quarter 2013, and
was 2,865,010 square feet at the end of the second quarter
2013.
Rental Rates
The average quoted asking rental rate for available office
space, all classes, was $34.40 per square foot per year at the end
Source: CoStar Property•
2
4%
2%
0%
1993 1993 1994 1995 1996 1996 1997 1998 1999 1999 2000 2001 2002 2002
4q
2q
1q
1q
4q
3q
2q
1q
4q
3q
2q
1q
4q
3q
OVERVIEW
Deliveries and Construction
During the first quarter 2014, five buildings totaling
745,810 square feet were completed in the Washington market
area. This compares to seven buildings totaling 1,666,894 square
feet that were completed in the fourth quarter 2013, nine buildings totaling 1,069,104 square feet completed in the third quarter
2013, and 861,834 square feet in four buildings completed in the
There were 6,091,677 square feet of office space under construction at the end of the first quarter 2014.
Some of the notable 2014 deliveries include: Two CityCenter
(South Tower), a 293,010-square-foot facility that delivered in first
quarter 2014 and is now 89% occupied, and 3003 Washington
Blvd, a 210,665-square-foot building that delivered in first quarter 2014 and is now 86% occupied.
The largest projects underway at the end of first quarter
2014 were the National Science Foundation’s Headquarters, a
720,000-square-foot built-to-suit, and Tysons Tower, a 524,979square-foot facility that is 61% pre-leased.
Inventory
Total office inventory in the Washington market area
amounted to 465,599,179 square feet in 9,950 buildings as of the
end of the first quarter 2014. The Class-A office sector consisted
of 253,442,372 square feet in 1,332 projects. There were 4,472
Class-B buildings totaling 175,705,487 square feet, and the ClassC sector consisted of 36,451,320 square feet in 4,146 buildings.
Within the Office market there were 299 owner-occupied buildings accounting for 26,388,000 square feet of office space.
Past 7 Quarters
Net Absorption
Deliveries
2.0
1.67
1.5
1.23
0.86
1.0
Millions SF
of the first quarter 2014 in the Washington market area. This
represented a 0.4% increase in quoted rental rates from the end
of the fourth quarter 2013, when rents were reported at $34.25
per square foot.
The average quoted rate within the Class-A sector was
$38.56 at the end of the first quarter 2014, while Class-B rates
stood at $29.65, and Class-C rates at $24.02. At the end of the
fourth quarter 2013, Class-A rates were $38.33 per square foot,
Class-B rates were $29.71, and Class-C rates were $23.93.
The average quoted asking rental rate in Washington’s CBD
was $49.84 at the end of the first quarter 2014, and $28.85 in the
suburban markets. In the fourth quarter 2013, quoted rates were
$48.71 in the CBD and $29.15 in the suburbs.
0.5
1.07
0.94
0.75
0.64
0.35
0.31
0.27
0.13
0.0
(0.01)
(0.5)
(1.0)
(0.83)
(1.04)
(1.5)
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
2013 in terms of dollar volume compared to the third quarter
of 2013.
In the fourth quarter, 41 office transactions closed with
a total volume of $1,039,252,297. The 41 buildings totaled
3,642,894 square feet and the average price per square foot
equated to $285.28 per square foot. That compares to 36 transactions totaling $2,330,578,944 in the third quarter 2013. The total
square footage in the third quarter was 6,819,998 square feet for
an average price per square foot of $341.73.
Total office building sales activity in 2013 was down compared to 2012. In the twelve months of 2013, the market saw 125
office sales transactions with a total volume of $4,900,219,009.
The price per square foot averaged $305.47. In the same twelve
months of 2012, the market posted 123 transactions with a total
volume of $5,238,549,131. The price per square foot averaged
$305.21.
Cap rates have been higher in 2013, averaging 6.68% compared to the same period in 2012 when they averaged 6.61%.
One of the largest transactions that has occurred within the
last four quarters in the Washington market is the sale of 555 12th
St NW in Washington. This 887,642-square-foot office building
sold for $505,000,000, or $568.92 per square foot. The property
sold on 1/7/2014, at a 5.60% cap rate.
Reports compiled by: D.J. O’Brien, CoStar Research Manager.
Sales Activity
Tallying office building sales of 15,000 square feet or larger,
Washington office sales figures fell during the fourth quarter
3
MARKETS
CoStar Submarket Clusters & Submarkets
In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets,
Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population
nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided
into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms
of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate
a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.
Submarket Clusters
Submarkets
Alexandria/I-395 Area
Crystal City
Pentagon City
Bethesda/Chevy Chase
Capitol Hill Area
Downtown DC
Eisenhower Ave Corridor
I-395 Corridor
Old Town Alexandria
Capitol Hill*
Capitol Riverfront
NoMa*
Southwest*
CBD*
East End*
West End*
Dulles Corridor
Great Falls
Route 28 Corridor South
Herndon
Reston
Route 28 Corridor North
E Prince Georges County
Bowie
Greater Upper Marlboro
East Falls Church
N Arlington/E FallsChurch
Frederick
Frederick
Georgetown/Uptown
Georgetown*
Uptown*
Greater Fairfax County
Annandale
McLean
Vienna
Fairfax Center
Merrifield
Fairfax City
Oakton
Falls Church
Tysons Corner
I-270 Corridor
Gaithersburg
North Rockville
Germantown
Rockville
I-270 Corridor North
North Bethesda/Potomac
Leesburg/Route 7 Corridor
Leesburg/West Loudoun
Route 7 Corridor
Manassas/Route 29/I-66
Manassas
Route 29/I-66 Corridor
N Prince Georges County
Beltsville/Calverton
Lanham
College Park
Laurel
Greenbelt
Landover/Largo/Captl Hts
Northeast/Southeast
Northeast*
Southeast*
R-B Corridor
Ballston
Clarendon/Courthouse
Rosslyn
Virginia Square
S Prince Georges County
Branch Avenue Corridor
NatHbr/OxnHill/FtWash
Pennsylvania Ave Corridor
SE Fairfax County
Huntington/Mt Vernon
Springfield/Burke
SE Montgomery County
Kensington/Wheaton
North Silver Spring/Rt 29
Winchester City
Winchester City
Woodbridge/I-95 Corridor
Silver Spring
* Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page.
4
INVENTORY & DEVELOPMENT
Historical Deliveries
1982 - 2014
Deliveries
25.0
Average Delivered SF
21.6
20.0
18.2
Millions of SF
16.5
15.0
17.3
18.2
16.2
15.0
14.5
12.7
12.7
11.6
11.4
9.9
10.0
11.6
10.3
8.7
6.6
4.8 4.8
5.0
9.5
7.4
6.8
5.0
4.5
2.9
7.5
4.5
1.4
3.9 4.1
2.6 2.8
2.4
0.0
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
* Future deliveries based on current under construction buildings.
Construction Activity
Markets Ranked by Under Construction Square Footage
Under Construction Inventory
Total RBA
# Bldgs
Market
Average Bldg Size
Preleased SF
Preleased %
All Existing
U/C
5
1,457,028
563,386
38.7%
51,972
291,406
Downtown DC
5
1,329,848
966,718
72.7%
119,046
265,970
I-270 Corridor
5
883,563
715,751
81.0%
57,644
176,713
2
770,000
698,400
90.7%
46,395
385,000
Capitol Hill Area
2
552,000
0
0.0%
72,933
276,000
Dulles Corridor
3
424,099
275,250
64.9%
74,049
141,366
1
226,566
0
0.0%
49,834
226,566
Frederick
4
120,009
13,210
11.0%
13,212
30,002
1
110,000
110,000
100.0%
27,912
110,000
Georgetown/Uptown
2
74,349
71,018
95.5%
20,837
37,174
All Other
4
144,215
57,695
40.0%
27,824
36,054
34
6,091,677
3,471,428
46,794
179,167
Totals
57.0%
Recent Deliveries
Future Deliveries
Leased & Un-Leased SF in Deliveries Since 2010
Preleased & Un-Leased SF in Properties Scheduled to Deliver
Leased
5.0
Un-Leased
Preleased
2,500
Un-Leased
4.5
4.0
2,000
Thousands of SF
Millions of SF
3.0
2.5
2.0
1.5
1.0
1,500
T
3.5
1,000
500
0.5
0.0
0
2010
2011
2012
2013
2014
2014 2q
2014 3q
2014 4q
2015 1q
5
Historical Construction Starts & Deliveries
Square Footage Per Quarter Starting and Completing Construction
Construction Starts
3.0
2.43
2.5
Millions of SF
Deliveries
2.0
1.67
1.60
1.45
1.5
1.0
1.25
0.86
0.74
0.86
0.79
1.07
0.92
0.86
0.64
0.60
0.44
0.5
1.23
0.37
0.24
0.35
0.75
0.61
0.56
0.55
0.49
0.37
0.27
0.0
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Recent Deliveries by Project Size
Building Size
# Bldgs
RBA
Breakdown of Year-to-Date Development Based on RBA of Project
SF Leased
% Leased
Avg Rate
Single-Tenant
Multi-Tenant
< 50,000 SF
1
40,000
40,000
100.0%
$0.00
0
40,000
50,000 SF - 99,999 SF
1
92,135
0
0.0%
$0.00
0
92,135
100,000 SF - 249,999 SF
2
320,665
181,172
56.5%
$54.47
0
320,665
250,000 SF - 499,999 SF
1
293,010
260,779
89.0%
$0.00
0
293,010
>= 500,000 SF
0
0
0
0.0%
$0.00
0
0
Recent Development by Tenancy
Existing Inventory Comparison
Based on RBA Developed for Single & Multi Tenant Use
Based on Total RBA
2014 Deliveries
Currently Under Construction
5%
0%
6
By Space Type
14%
8%
38%
100%
Multi
By Class
54%
95%
Single
Multi
Class A
Single
Class B
86%
Class C
Multi
Single
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
�
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
�
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
�
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
7
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
�
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
�
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
�
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
�
��
�
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
8
FIGURES AT A GLANCE
Class A Market Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Vacancy
Total RBA
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
Direct SF
Total SF
Vac %
4,979,107
5,210,681
26.3%
40,258
0
720,000
$34.58
100
26
5,814,495
540,535
558,119
9.6%
(27,861)
0
226,566
$42.61
Capitol Hill Area
76
25,542,604
3,375,216
3,481,162
13.6%
(23,002)
0
552,000
$51.33
Downtown DC
232
60,792,581
5,806,854
6,436,248
10.6%
365,506
293,010
1,329,848
$56.34
Dulles Corridor
278
39,519,137
5,452,129
6,048,130
15.3%
5,146
0
224,099
$27.52
8
821,392
151,819
161,733
19.7%
(20,890)
0
0
$26.18
East Falls Church
1
300,000
5,000
5,000
1.7%
0
0
0
$43.06
Frederick
21
2,508,959
421,093
421,093
16.8%
40,981
0
63,909
$22.60
Georgetown/Uptown
23
4,139,582
244,230
267,083
6.5%
61,120
0
0
$43.31
180
32,040,171
4,815,207
5,212,078
16.3%
(147,878)
0
1,436,364
$32.49
I-270 Corridor
144
23,077,168
4,229,364
4,619,340
20.0%
(606,371)
110,000
803,563
$29.60
38
3,434,049
500,275
504,893
14.7%
(8,131)
0
55,681
$25.05
15
986,125
103,014
103,014
10.4%
21,148
0
0
$24.28
51
7,338,200
1,867,136
1,906,897
26.0%
(560,331)
0
110,000
$20.61
0
0
0
0
0.0%
0
0
$0.00
73
17,440,237
2,772,922
2,950,844
16.9%
(202,040)
302,800
0
$42.87
Northeast/Southeast
R-B Corridor
19,839,328
YTD Net
0
7
789,431
197,145
212,321
26.9%
42,564
0
0
$23.64
SE Fairfax County
22
2,730,895
819,549
960,485
35.2%
40,322
40,000
0
$35.99
28
5,757,939
466,896
501,864
8.7%
(25,192)
0
0
$29.67
Winchester City
1
39,470
12,511
12,511
31.7%
0
0
$15.00
8
530,609
30,950
42,750
8.1%
0
0
$27.81
Totals
1,332
253,442,372
36,790,952
39,616,246
15.6%
0
(4,500)
(1,009,151)
745,810
5,522,030
$38.56
Class B Market Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Total RBA
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
389
15,942,247
2,877,008
2,952,837
18.5%
92,511
0
50,000
$32.95
107
5,254,256
490,685
529,444
10.1%
(47,105)
0
0
$32.99
Capitol Hill Area
133
6,974,573
595,986
596,862
8.6%
(13,220)
0
0
$39.23
Downtown DC
340
32,425,237
2,710,508
2,921,415
9.0%
(175,616)
0
0
$43.26
Dulles Corridor
407
15,271,700
2,270,619
2,425,191
15.9%
65,269
0
200,000
$21.36
47
1,098,244
83,002
87,022
7.9%
(5,329)
0
0
$21.74
East Falls Church
23
328,229
6,000
6,000
1.8%
0
0
$32.00
Frederick
233
3,974,266
569,882
579,896
14.6%
(14,893)
0
56,100
$20.40
Georgetown/Uptown
320
8,742,112
628,435
658,287
7.5%
(47,056)
0
74,349
$39.21
650
25,949,174
3,241,560
3,362,325
13.0%
3,459
0
20,664
$25.92
I-270 Corridor
391
18,757,483
2,663,333
2,777,636
14.8%
26,988
0
80,000
$23.99
224
3,734,673
380,930
388,281
10.4%
0
5,600
$23.97
168
3,529,030
559,108
567,812
16.1%
33,897
0
0
$20.71
260
9,061,383
2,248,902
2,269,898
25.1%
100,921
0
0
$19.94
Northeast/Southeast
60
1,940,305
513,077
539,442
27.8%
(3,280)
0
0
$39.28
R-B Corridor
51
7,096,653
1,831,716
1,846,702
26.0%
65,429
0
0
$39.36
90
2,223,146
261,694
261,694
11.8%
20,198
0
0
$21.59
SE Fairfax County
179
4,733,601
661,624
672,060
14.2%
9,918
0
0
$22.88
157
5,522,442
939,987
960,559
17.4%
(6,488)
0
25,239
$24.13
80
982,788
76,845
78,445
8.0%
19,681
0
57,695
$17.58
163
2,163,945
258,136
270,433
12.5%
8,910
0
0
$21.28
Winchester City
Totals
4,472
175,705,487
23,869,037
24,752,241
14.1%
0
(685)
133,509
0
569,647
$29.65
9
FIGURES AT A GLANCE
Class C Market Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
346
Capitol Hill Area
Total RBA
Vacancy
Direct SF
Total SF
YTD Net
YTD
Under
Vac %
Absorption
Deliveries
Const SF
Quoted
Rates
(430)
0
0
$25.61
2,958,476
102,012
102,862
3.5%
107
891,452
26,496
26,496
3.0%
1,972
0
0
$29.03
258
1,542,740
84,524
85,274
5.5%
6,686
0
0
$39.89
Downtown DC
244
3,923,353
164,396
175,234
4.5%
3,112
0
0
$40.43
Dulles Corridor
67
893,712
77,495
77,495
8.7%
(151)
0
0
$19.66
57
410,279
18,607
18,607
4.5%
282
0
0
$13.52
East Falls Church
29
286,651
48,804
48,804
17.0%
(1,806)
0
0
$27.90
Frederick
379
1,880,170
161,814
161,814
8.6%
(287)
0
0
$19.04
Georgetown/Uptown
457
3,787,657
198,223
198,223
5.2%
77,578
0
0
$33.33
349
3,285,499
445,651
455,351
13.9%
(4,990)
0
0
$22.61
I-270 Corridor
270
4,568,453
347,434
347,934
7.6%
(14,930)
0
0
$20.39
128
585,995
40,721
40,721
6.9%
2,720
0
0
$25.26
169
1,085,192
64,546
64,546
5.9%
(5,345)
0
0
$16.92
383
2,971,343
198,463
198,463
6.7%
(6,198)
0
0
$18.91
Northeast/Southeast
182
1,422,499
145,962
148,202
10.4%
15,375
0
0
$22.30
55
731,202
80,677
81,327
11.1%
(37,352)
0
0
$35.42
226
1,492,650
78,627
78,627
5.3%
8,637
0
0
$24.76
82
1,109,183
43,339
43,339
3.9%
6,262
0
0
$20.35
189
1,625,463
195,835
195,835
12.0%
(6,614)
0
0
$21.43
64
364,651
36,048
36,048
9.9%
10,111
0
0
$13.70
105
634,700
51,798
51,798
8.2%
(13,141)
0
0
$20.05
7.2%
41,491
R-B Corridor
SE Fairfax County
Winchester City
Totals
4,146
36,451,320
2,611,472
2,637,000
0
0
$24.02
Total Office Market Statistics
Existing Inventory
Market
# Blds
Total RBA
First Quarter 2014
Vacancy
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
Direct SF
Total SF
Vac %
21.3%
132,339
0
770,000
$33.84
835
38,740,051
7,958,127
8,266,380
240
11,960,203
1,057,716
1,114,059
9.3%
(72,994)
0
226,566
$36.42
Capitol Hill Area
467
34,059,917
4,055,726
4,163,298
12.2%
(29,536)
0
552,000
$48.94
Downtown DC
816
97,141,171
8,681,758
9,532,897
9.8%
193,002
293,010
1,329,848
$52.22
Dulles Corridor
752
55,684,549
7,800,243
8,550,816
15.4%
70,264
0
424,099
$25.57
112
2,329,915
253,428
267,362
11.5%
(25,937)
0
0
$21.51
53
914,880
59,804
59,804
6.5%
(1,806)
0
0
$29.51
Frederick
633
8,363,395
1,152,789
1,162,803
13.9%
25,801
0
120,009
$20.84
Georgetown/Uptown
800
16,669,351
1,070,888
1,123,593
6.7%
91,642
0
74,349
$39.24
1,179
61,274,844
8,502,418
9,029,754
14.7%
(149,409)
0
1,457,028
$29.30
I-270 Corridor
805
46,403,104
7,240,131
7,744,910
16.7%
(594,313)
110,000
883,563
$26.69
390
7,754,717
921,926
933,895
12.0%
(6,096)
0
61,281
$24.68
352
5,600,347
726,668
735,372
13.1%
49,700
0
0
$20.90
694
19,370,926
4,314,501
4,375,258
22.6%
(465,608)
0
110,000
$20.14
Northeast/Southeast
242
3,362,804
659,039
687,644
20.4%
12,095
0
0
$35.14
R-B Corridor
179
25,268,092
4,685,315
4,878,873
19.3%
(173,963)
302,800
0
$41.20
323
4,505,227
537,466
552,642
12.3%
71,399
0
0
$23.24
SE Fairfax County
283
8,573,679
1,524,512
1,675,884
19.5%
56,502
40,000
0
$27.38
374
12,905,844
1,602,718
1,658,258
12.8%
(38,294)
0
25,239
$26.03
Winchester City
145
1,386,909
125,404
127,004
9.2%
29,792
0
57,695
$16.43
276
3,329,254
340,884
364,981
11.0%
(8,731)
0
0
$21.91
East Falls Church
Totals
9,950
465,599,179
63,271,461
67,005,487
14.4%
(834,151)
745,810
6,091,677
$34.40
10
FIGURES AT A GLANCE
Class A Submarket Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Vacancy
Total RBA
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
0
0
$27.98
Rates
4
434,100
43,751
58,135
13.4%
29
6,869,267
726,975
800,600
11.7%
(54,997)
0
0
$42.95
Beltsville/Calvert
7
896,663
356,587
356,587
39.8%
(147,099)
0
0
$21.59
Bethesda/Chevy
26
5,814,495
540,535
558,119
9.6%
(27,861)
0
226,566
$42.61
Bowie
7
767,392
151,819
161,733
21.1%
(20,890)
0
0
$26.18
Branch Avenue C
0
0
0
0
0.0%
0
0
$0.00
Capitol Hill
15
3,545,886
269,457
303,545
8.6%
0
0
$56.50
Capitol Riverfron
10
3,774,430
688,642
706,232
18.7%
875
0
0
$44.26
102
23,976,823
2,728,007
3,018,608
12.6%
179,818
0
168,769
$55.03
Clarendon/Court
22
3,909,118
547,501
584,604
15.0%
(20,830)
302,800
0
$43.29
College Park
10
1,847,973
101,516
101,516
5.5%
0
0
$28.50
Crystal City
16
5,013,983
1,629,364
1,716,329
34.2%
0
0
$39.90
118
33,968,201
3,055,819
3,386,839
10.0%
176,866
293,010
1,161,079
$57.60
Eisenhower Ave
11
3,579,293
113,006
115,801
3.2%
16,097
0
720,000
$27.16
Fairfax Center
34
5,112,072
761,816
809,081
15.8%
(15,514)
0
112,507
$28.98
Fairfax City
9
934,940
163,011
163,011
17.4%
0
0
$27.90
Falls Church
3
323,405
173,047
173,047
53.5%
(87,114)
0
0
$27.13
Frederick
21
2,508,959
421,093
421,093
16.8%
40,981
0
63,909
$22.60
Gaithersburg
11
2,381,845
275,980
346,492
14.5%
(69,032)
0
0
$23.79
Georgetown
10
1,771,357
150,114
165,667
9.4%
15,934
0
0
$42.97
Germantown
13
1,490,868
328,504
346,950
23.3%
(27,756)
0
0
$27.66
Great Falls
0
0
0
0
0.0%
0
0
0
$0.00
Greater Upper M
1
54,000
0
0
0.0%
0
0
0
$0.00
Greenbelt
18
2,166,286
732,673
762,444
35.2%
(83,580)
0
0
$21.81
Herndon
57
9,117,818
773,416
888,610
9.7%
(1,263)
0
0
$27.55
Huntington/Mt V
2
191,718
40,937
40,937
21.4%
(7,289)
0
0
$24.68
I-270 Corridor N
2
321,838
0
0
0.0%
0
119,530
$0.00
22
5,497,680
2,254,075
2,268,522
41.3%
(11,665)
0
0
$29.87
Kensington/Whe
2
165,000
12,729
12,729
7.7%
3,000
0
0
$33.00
Landover/Largo/
8
1,139,735
270,554
270,554
23.7%
(1,193)
0
0
$17.64
Lanham
2
446,996
332,388
342,378
76.6%
(324,996)
0
110,000
$20.02
Laurel
6
840,547
73,418
73,418
8.7%
(3,463)
0
0
$17.99
11
747,535
88,507
88,507
11.8%
6,260
0
0
$27.14
Annandale
Ballston
CBD
East End
I-395 Corridor
Leesburg/West L
0
Quoted
0
(11,339)
0
(722)
892
0
11
FIGURES AT A GLANCE
Class A Submarket Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Vacancy
Total RBA
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
Manassas
3
201,000
35,042
35,042
17.4%
20,249
0
0
$25.68
McLean
0
0
0
0
0.0%
0
0
0
$0.00
36
5,780,387
947,643
1,150,312
19.9%
0
0
$28.74
N Arlington/E Fa
1
300,000
5,000
5,000
1.7%
0
0
0
$43.06
NatHbr/OxnHill/
4
460,752
86,264
101,440
22.0%
2,703
0
0
$25.19
NoMa
28
9,352,544
1,377,346
1,414,314
15.1%
41,209
0
0
$50.49
North Bethesda/
33
7,124,271
1,548,728
1,622,615
22.8%
(268,617)
0
169,644
$31.58
North Rockville
60
8,026,410
1,370,511
1,580,881
19.7%
(251,848)
110,000
0
$28.16
North Silver Sprin
7
1,399,928
14,213
14,213
1.0%
1,675
0
0
$24.54
Northeast
0
0
0
0
0.0%
0
0
0
$0.00
Oakton
10
1,319,431
198,434
198,434
15.0%
6,622
0
0
$25.22
Old Town Alexa
46
4,728,222
643,116
770,483
16.3%
36,548
0
0
$32.70
Pennsylvania Av
3
328,679
110,881
110,881
33.7%
39,861
0
0
$22.50
Pentagon City
5
1,020,150
339,546
339,546
33.3%
0
0
0
$0.00
Reston
95
14,218,215
1,742,480
2,126,797
15.0%
200,679
0
175,000
$29.52
Rockville
25
3,731,936
705,641
722,402
19.4%
10,882
0
514,389
$31.58
Rosslyn
17
5,488,282
1,428,391
1,495,585
27.3%
(126,213)
0
0
$42.77
Route 28 Corrido
54
6,181,965
1,326,169
1,405,953
22.7%
(194,332)
0
49,099
$25.04
Route 28 Corrido
72
10,001,139
1,610,064
1,626,770
16.3%
62
0
0
$25.74
Route 29/I-66 C
12
785,125
67,972
67,972
8.7%
899
0
0
$23.57
Route 7 Corridor
27
2,686,514
411,768
416,386
15.5%
(14,391)
0
55,681
$24.66
Silver Spring
19
4,193,011
439,954
474,922
11.3%
(29,867)
0
0
$29.64
Southeast
0
0
0
0
0.0%
0
0
$0.00
Southwest
23
8,869,744
1,039,771
1,057,071
11.9%
(53,747)
0
552,000
$50.94
Springfield/Burke
20
2,539,177
778,612
919,548
36.2%
47,611
40,000
0
$36.85
Tysons Corner
82
17,719,512
2,472,981
2,605,534
14.7%
(37,030)
0
1,323,857
$36.06
Uptown
13
2,368,225
94,116
101,416
4.3%
45,186
0
0
$44.94
Vienna
2
416,324
54,524
54,524
13.1%
103
0
0
$0.00
Virginia Square
5
1,173,570
70,055
70,055
6.0%
0
0
0
$41.69
12
2,847,557
23,028
30,801
1.1%
8,822
0
0
$53.74
1
39,470
12,511
12,511
31.7%
0
0
0
$15.00
0
$27.81
Merrifield
West End
Winchester City
Woodbridge/I-9
Totals
8
1,332
530,609
253,442,372
30,950
36,790,952
42,750
39,616,246
8.1%
15.6%
(15,837)
0
(4,500)
(1,009,151)
0
745,810
5,522,030
$38.56
12
FIGURES AT A GLANCE
Class B Submarket Statistics
Existing Inventory
Market
# Blds
Total RBA
First Quarter 2014
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
65
1,499,789
161,940
165,431
11.0%
(1,138)
0
0
$22.94
8
949,759
419,381
419,381
44.2%
14,976
0
0
$37.45
Beltsville/Calvert
19
729,773
162,072
162,072
22.2%
1,673
0
0
$17.94
Bethesda/Chevy
107
5,254,256
490,685
529,444
10.1%
(47,105)
0
0
$32.99
Bowie
35
993,247
71,834
75,854
7.6%
(4,564)
0
0
$22.61
Branch Avenue C
48
1,378,578
122,258
122,258
8.9%
11,575
0
0
$19.84
Capitol Hill
98
1,611,690
182,875
183,751
11.4%
(3,395)
0
0
$44.77
7
1,099,754
90,252
90,252
8.2%
0
0
$39.01
190
19,846,191
1,286,733
1,389,527
7.0%
(100,458)
0
0
$43.30
Clarendon/Court
14
1,895,506
218,030
218,030
11.5%
35,087
0
0
$38.84
College Park
47
1,958,818
658,021
661,370
33.8%
0
0
$21.22
Crystal City
23
6,291,032
1,151,446
1,194,317
19.0%
4,007
0
0
$36.32
135
11,470,359
1,264,722
1,370,335
11.9%
(91,823)
0
0
$43.19
Eisenhower Ave
16
1,693,146
545,038
546,606
32.3%
78,102
0
0
$25.75
Fairfax Center
32
2,094,614
212,099
214,610
10.2%
(25,987)
0
0
$25.08
Fairfax City
137
3,404,865
445,824
464,524
13.6%
(23,966)
0
20,664
$21.86
Falls Church
87
1,901,186
228,414
266,440
14.0%
15,499
0
0
$23.47
Frederick
233
3,974,266
569,882
579,896
14.6%
(14,893)
0
56,100
$20.40
Gaithersburg
115
4,184,243
443,072
443,072
10.6%
9,750
0
0
$21.68
Georgetown
64
1,540,971
94,159
98,659
6.4%
10,623
0
0
$39.65
Germantown
42
1,720,879
219,459
219,459
12.8%
12,177
0
80,000
$22.40
Great Falls
16
191,225
11,306
11,306
5.9%
847
0
0
$26.11
Greater Upper M
12
104,997
11,168
11,168
10.6%
(765)
0
0
$17.92
Greenbelt
52
1,485,464
314,529
323,344
21.8%
3,056
0
0
$19.55
Herndon
97
2,889,342
424,960
427,106
14.8%
26,656
0
0
$21.91
Huntington/Mt V
35
673,927
79,387
79,387
11.8%
1,709
0
0
$22.23
I-270 Corridor N
7
626,152
540,284
540,284
86.3%
(2,500)
0
0
$27.44
I-395 Corridor
90
3,053,159
606,003
616,816
20.2%
(14,508)
0
0
$29.14
Kensington/Whe
47
1,327,184
356,631
356,631
26.9%
4,572
0
0
$22.97
Landover/Largo/
37
1,898,389
444,437
444,437
23.4%
18,089
0
0
$20.11
Lanham
37
1,343,706
399,716
402,046
29.9%
(9,796)
0
0
$19.36
Laurel
68
1,645,233
270,127
276,629
16.8%
88,547
0
0
$18.77
177
1,829,682
269,932
269,932
14.8%
(3,743)
0
5,600
$23.79
Annandale
Ballston
Capitol Riverfron
CBD
East End
Leesburg/West L
0
(648)
13
FIGURES AT A GLANCE
Class B Submarket Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Total RBA
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
Manassas
74
1,575,376
261,485
263,967
16.8%
(7,144)
0
0
$20.73
McLean
74
1,535,701
95,712
97,632
6.4%
13,331
0
0
$31.19
Merrifield
71
4,177,826
246,938
251,255
6.0%
35,783
0
0
$26.39
N Arlington/E Fa
23
328,229
6,000
6,000
1.8%
0
0
0
$32.00
NatHbr/OxnHill/
20
567,343
101,367
101,367
17.9%
881
0
0
$23.32
NoMa
14
1,241,877
180,361
180,361
14.5%
0
0
0
$29.32
North Bethesda/
60
3,091,410
364,963
371,936
12.0%
9,263
0
0
$26.52
North Rockville
79
4,873,282
777,241
864,925
17.7%
(14,115)
0
0
$23.21
North Silver Sprin
47
1,969,245
396,437
410,389
20.8%
(3,893)
0
25,239
$24.02
Northeast
40
1,524,711
499,578
499,578
32.8%
(3,280)
0
0
$39.38
Oakton
11
220,103
30,046
30,046
13.7%
(12,168)
0
0
$24.63
Old Town Alexa
257
4,119,860
335,218
355,795
8.6%
24,910
0
50,000
$28.30
Pennsylvania Av
22
277,225
38,069
38,069
13.7%
7,742
0
0
$23.46
3
785,050
239,303
239,303
30.5%
0
0
0
$0.00
109
5,004,597
647,521
690,883
13.8%
25,133
0
0
$21.23
Rockville
88
4,261,517
318,314
337,960
7.9%
12,413
0
0
$26.78
Rosslyn
21
3,802,857
959,142
974,128
25.6%
8,162
0
0
$40.29
Route 28 Corrido
96
3,601,741
650,320
671,553
18.6%
(14,889)
0
200,000
$20.10
Route 28 Corrido
89
3,584,795
536,512
624,343
17.4%
27,522
0
0
$21.98
Route 29/I-66 C
94
1,953,654
297,623
303,845
15.6%
41,041
0
0
$20.70
Route 7 Corridor
47
1,904,991
110,998
118,349
6.2%
3,058
0
0
$24.40
Silver Spring
63
2,226,013
186,919
193,539
8.7%
(7,167)
0
0
$24.99
Southeast
20
415,594
13,499
39,864
9.6%
0
0
$30.95
Southwest
14
3,021,252
142,498
142,498
4.7%
(9,825)
0
0
$43.56
Springfield/Burke
144
4,059,674
582,237
592,673
14.6%
8,209
0
0
$22.95
Tysons Corner
114
10,016,295
1,622,861
1,674,661
16.7%
(343)
0
0
$27.04
Uptown
256
7,201,141
534,276
559,628
7.8%
(57,679)
0
74,349
$39.15
Vienna
59
1,098,795
197,726
197,726
18.0%
2,448
0
0
$22.32
8
448,531
235,163
235,163
52.4%
7,204
0
0
$39.59
West End
15
1,108,687
159,053
161,553
14.6%
16,665
0
0
$43.48
Winchester City
80
982,788
76,845
78,445
8.0%
19,681
0
57,695
$17.58
8,910
0
0
$21.28
Pentagon City
Reston
Virginia Square
Woodbridge/I-9
Totals
163
4,472
2,163,945
175,705,487
258,136
23,869,037
270,433
24,752,241
12.5%
14.1%
0
133,509
0
569,647
$29.65
14
FIGURES AT A GLANCE
Class C Submarket Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Total RBA
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
0
0
$21.01
Rates
59
317,358
28,130
28,130
8.9%
5
29,164
0
0
0.0%
0
0
0
$0.00
Beltsville/Calvert
28
280,749
5,982
5,982
2.1%
1,671
0
0
$22.85
Bethesda/Chevy
107
891,452
26,496
26,496
3.0%
1,972
0
0
$29.03
24
256,757
7,600
7,600
3.0%
0
0
0
$12.45
Branch Avenue C
122
920,711
28,874
28,874
3.1%
8,906
0
0
$26.25
Capitol Hill
213
1,220,512
56,272
57,022
4.7%
977
0
0
$43.50
Capitol Riverfron
27
120,643
10,055
10,055
8.3%
5,709
0
0
$34.69
CBD
94
1,193,242
109,906
111,806
9.4%
5,461
0
0
$42.34
Clarendon/Court
32
292,453
5,083
5,083
1.7%
(1,658)
0
0
$27.10
College Park
176
1,332,491
146,764
146,764
11.0%
(3,601)
0
0
$18.72
Crystal City
12
545,935
2,200
2,200
0.4%
0
0
$30.30
142
2,088,676
53,215
62,153
3.0%
0
0
$39.42
Eisenhower Ave
8
50,253
0
0
0.0%
0
0
0
$0.00
Fairfax Center
4
82,541
0
0
0.0%
0
0
0
$21.04
Fairfax City
73
844,180
67,654
67,654
8.0%
(3,690)
0
0
$21.35
Falls Church
101
683,189
42,724
44,924
6.6%
14,753
0
0
$21.19
Frederick
379
1,880,170
161,814
161,814
8.6%
0
0
$19.04
Gaithersburg
83
984,847
53,665
54,165
5.5%
2,672
0
0
$17.47
Georgetown
80
366,369
27,341
27,341
7.5%
8,572
0
0
$44.27
Germantown
11
44,499
5,052
5,052
11.4%
0
0
0
$17.00
3
22,642
2,150
2,150
9.5%
0
0
0
$0.00
Greater Upper M
33
153,522
11,007
11,007
7.2%
282
0
0
$18.28
Greenbelt
11
104,213
0
0
0.0%
0
0
0
$18.00
Herndon
20
378,728
26,827
26,827
7.1%
(5,160)
0
0
$23.04
Huntington/Mt V
26
422,453
18,324
18,324
4.3%
1,453
0
0
$17.42
I-270 Corridor N
12
91,376
2,295
2,295
2.5%
(695)
0
0
$14.65
I-395 Corridor
57
1,042,166
28,499
28,499
2.7%
(7,354)
0
0
$21.62
Kensington/Whe
52
398,898
35,885
35,885
9.0%
(2,955)
0
0
$22.72
Landover/Largo/
82
559,370
24,868
24,868
4.4%
(8,324)
0
0
$18.78
Lanham
28
257,466
12,133
12,133
4.7%
338
0
0
$20.65
Laurel
58
437,054
8,716
8,716
2.0%
3,718
0
0
$15.73
126
580,084
40,721
40,721
7.0%
2,720
0
0
$25.26
Annandale
Ballston
Bowie
East End
Great Falls
Leesburg/West L
(11,474)
Quoted
0
(2,999)
(287)
15
FIGURES AT A GLANCE
Class C Submarket Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Vacancy
Total RBA
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
134
858,138
46,277
46,277
5.4%
(5,345)
0
0
$16.21
McLean
27
198,756
19,289
26,789
13.5%
(2,277)
0
0
$30.14
Merrifield
17
175,935
9,326
9,326
5.3%
2,423
0
0
$22.46
N Arlington/E Fa
29
286,651
48,804
48,804
17.0%
(1,806)
0
0
$27.90
NatHbr/OxnHill/
32
247,360
20,595
20,595
8.3%
3,555
0
0
$17.06
NoMa
17
182,843
18,197
18,197
10.0%
0
0
0
$30.96
North Bethesda/
34
946,128
73,484
73,484
7.8%
1,251
0
0
$20.81
North Rockville
29
651,773
75,939
75,939
11.7%
25,993
0
0
$22.54
North Silver Sprin
30
231,994
13,739
13,739
5.9%
(1,625)
0
0
$18.14
110
1,043,692
128,518
128,518
12.3%
15,931
0
0
$21.60
6
52,018
0
0
0.0%
0
0
0
$0.00
Old Town Alexa
269
1,320,122
71,313
72,163
5.5%
6,924
0
0
$27.59
Pennsylvania Av
72
324,579
29,158
29,158
9.0%
(3,824)
0
0
$21.79
0
0
0
0
0.0%
0
0
0
$0.00
14
210,505
12,442
12,442
5.9%
0
0
0
$21.97
101
1,849,830
136,999
136,999
7.4%
(44,151)
0
0
$19.37
4
218,222
73,655
74,155
34.0%
(34,160)
0
0
$36.44
Route 28 Corrido
17
165,740
15,784
15,784
9.5%
2,500
0
0
$16.13
Route 28 Corrido
13
116,097
20,292
20,292
17.5%
2,509
0
0
$15.79
Route 29/I-66 C
35
227,054
18,269
18,269
8.0%
0
0
0
$19.50
Route 7 Corridor
2
5,911
0
0
0.0%
0
0
0
$0.00
107
994,571
146,211
146,211
14.7%
(2,034)
0
0
$21.20
Southeast
72
378,807
17,444
19,684
5.2%
(556)
0
0
$26.44
Southwest
1
18,742
0
0
0.0%
0
0
0
$0.00
Springfield/Burke
56
686,730
25,015
25,015
3.6%
4,809
0
0
$21.63
Tysons Corner
21
549,360
248,386
248,386
45.2%
0
0
$21.03
Uptown
377
3,421,288
170,882
170,882
5.0%
69,006
0
0
$31.67
Vienna
41
382,162
30,142
30,142
7.9%
(4,685)
0
0
$22.89
Virginia Square
14
191,363
1,939
2,089
1.1%
(1,534)
0
0
$23.68
8
641,435
1,275
1,275
0.2%
650
0
0
$32.50
64
364,651
36,048
36,048
9.9%
10,111
0
0
$13.70
8.2%
(13,141)
0
0
$20.05
7.2%
41,491
Manassas
Northeast
Oakton
Pentagon City
Reston
Rockville
Rosslyn
Silver Spring
West End
Winchester City
Woodbridge/I-9
Totals
105
4,146
634,700
36,451,320
51,798
2,611,472
51,798
2,637,000
(40)
0
0
$24.02
16
FIGURES AT A GLANCE
Total Office Submarket Statistics
Existing Inventory
Market
# Blds
Total RBA
First Quarter 2014
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
128
2,251,247
233,821
251,696
11.2%
(12,612)
0
0
$24.27
Ballston
42
7,848,190
1,146,356
1,219,981
15.5%
(40,021)
0
0
$41.54
Beltsville/Calvert
54
1,907,185
524,641
524,641
27.5%
(143,755)
0
0
$20.60
Bethesda/Chevy
240
11,960,203
1,057,716
1,114,059
9.3%
(72,994)
0
226,566
$36.42
66
2,017,396
231,253
245,187
12.2%
(25,454)
0
0
$21.90
Branch Avenue C
170
2,299,289
151,132
151,132
6.6%
20,481
0
0
$23.29
Capitol Hill
326
6,378,088
508,604
544,318
8.5%
(13,757)
0
0
$52.89
44
4,994,827
788,949
806,539
16.1%
6,584
0
0
$42.77
386
45,016,256
4,124,646
4,519,941
10.0%
84,821
0
168,769
$50.69
68
6,097,077
770,614
807,717
13.2%
12,599
302,800
0
$41.36
College Park
233
5,139,282
906,301
909,650
17.7%
(4,249)
0
0
$20.79
Crystal City
51
11,850,950
2,783,010
2,912,846
24.6%
3,285
0
0
$38.28
395
47,527,236
4,373,756
4,819,327
10.1%
82,044
293,010
1,161,079
$53.68
Eisenhower Ave
35
5,322,692
658,044
662,407
12.4%
94,199
0
720,000
$26.06
Fairfax Center
70
7,289,227
973,915
1,023,691
14.0%
(41,501)
0
112,507
$28.08
Fairfax City
219
5,183,985
676,489
695,189
13.4%
(26,764)
0
20,664
$23.09
Falls Church
191
2,907,780
444,185
484,411
16.7%
(56,862)
0
0
$24.48
Frederick
633
8,363,395
1,152,789
1,162,803
13.9%
25,801
0
120,009
$20.84
Gaithersburg
209
7,550,935
772,717
843,729
11.2%
(56,610)
0
0
$22.17
Georgetown
154
3,678,697
271,614
291,667
7.9%
35,129
0
0
$41.98
Germantown
66
3,256,246
553,015
571,461
17.5%
(15,579)
0
80,000
$24.73
Great Falls
19
213,867
13,456
13,456
6.3%
847
0
0
$26.11
Greater Upper M
46
312,519
22,175
22,175
7.1%
(483)
0
0
$18.10
Greenbelt
81
3,755,963
1,047,202
1,085,788
28.9%
(80,524)
0
0
$21.07
Herndon
174
12,385,888
1,225,203
1,342,543
10.8%
20,233
0
0
$25.66
Huntington/Mt V
63
1,288,098
138,648
138,648
10.8%
(4,127)
0
0
$22.44
I-270 Corridor N
21
1,039,366
542,579
542,579
52.2%
(3,195)
0
119,530
$22.19
I-395 Corridor
169
9,593,005
2,888,577
2,913,837
30.4%
(33,527)
0
0
$29.54
Kensington/Whe
101
1,891,082
405,245
405,245
21.4%
4,617
0
0
$24.04
Landover/Largo/
127
3,597,494
739,859
739,859
20.6%
8,572
0
0
$19.15
67
2,048,168
744,237
756,557
36.9%
(334,454)
0
110,000
$19.45
Laurel
132
2,922,834
352,261
358,763
12.3%
88,802
0
0
$18.50
Leesburg/West L
314
3,157,301
399,160
399,160
12.6%
5,237
0
5,600
$24.77
Annandale
Bowie
Capitol Riverfron
CBD
Clarendon/Court
East End
Lanham
17
FIGURES AT A GLANCE
Total Office Submarket Statistics
Existing Inventory
Market
# Blds
Total RBA
First Quarter 2014
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
Manassas
211
2,634,514
342,804
345,286
13.1%
7,760
0
0
$20.59
McLean
101
1,734,457
115,001
124,421
7.2%
11,054
0
0
$31.02
Merrifield
124
10,134,148
1,203,907
1,410,893
13.9%
22,369
0
0
$28.17
N Arlington/E Fa
53
914,880
59,804
59,804
6.5%
(1,806)
0
0
$29.51
NatHbr/OxnHill/
56
1,275,455
208,226
223,402
17.5%
7,139
0
0
$23.85
NoMa
59
10,777,264
1,575,904
1,612,872
15.0%
41,209
0
0
$47.01
North Bethesda/
127
11,161,809
1,987,175
2,068,035
18.5%
(258,103)
0
169,644
$29.70
North Rockville
168
13,551,465
2,223,691
2,521,745
18.6%
(239,970)
110,000
0
$25.50
84
3,601,167
424,389
438,341
12.2%
(3,843)
0
25,239
$23.89
150
2,568,403
628,096
628,096
24.5%
12,651
0
0
$35.51
27
1,591,552
228,480
228,480
14.4%
(5,546)
0
0
$25.07
Old Town Alexa
572
10,168,204
1,049,647
1,198,441
11.8%
68,382
0
50,000
$31.19
Pennsylvania Av
97
930,483
178,108
178,108
19.1%
43,779
0
0
$22.57
8
1,805,200
578,849
578,849
32.1%
0
0
0
$0.00
Reston
218
19,433,317
2,402,443
2,830,122
14.6%
225,812
0
175,000
$27.60
Rockville
214
9,843,283
1,160,954
1,197,361
12.2%
(20,856)
0
514,389
$28.61
Rosslyn
42
9,509,361
2,461,188
2,543,868
26.8%
(152,211)
0
0
$40.95
Route 28 Corrido
167
9,949,446
1,992,273
2,093,290
21.0%
(206,721)
0
249,099
$23.23
Route 28 Corrido
174
13,702,031
2,166,868
2,271,405
16.6%
30,093
0
0
$24.26
Route 29/I-66 C
141
2,965,833
383,864
390,086
13.2%
41,940
0
0
$21.10
Route 7 Corridor
76
4,597,416
522,766
534,735
11.6%
(11,333)
0
55,681
$24.61
189
7,413,595
773,084
814,672
11.0%
(39,068)
0
0
$27.42
Southeast
92
794,401
30,943
59,548
7.5%
(556)
0
0
$27.40
Southwest
38
11,909,738
1,182,269
1,199,569
10.1%
(63,572)
0
552,000
$49.96
Springfield/Burke
220
7,285,581
1,385,864
1,537,236
21.1%
60,629
40,000
0
$27.88
Tysons Corner
217
28,285,167
4,344,228
4,528,581
16.0%
(37,413)
0
1,323,857
$31.75
Uptown
646
12,990,654
799,274
831,926
6.4%
56,513
0
74,349
$38.43
Vienna
102
1,897,281
282,392
282,392
14.9%
(2,134)
0
0
$22.57
Virginia Square
27
1,813,464
307,157
307,307
16.9%
5,670
0
0
$40.56
West End
35
4,597,679
183,356
193,629
4.2%
26,137
0
0
$51.10
145
1,386,909
125,404
127,004
9.2%
29,792
0
57,695
$16.43
0
$21.91
North Silver Sprin
Northeast
Oakton
Pentagon City
Silver Spring
Winchester City
Woodbridge/I-9
Totals
276
9,950
3,329,254
465,599,179
340,884
63,271,461
364,981
67,005,487
11.0%
14.4%
(8,731)
(834,151)
0
745,810
6,091,677
$34.40
18
FIGURES AT A GLANCE
First Quarter 2014
Existing Inventory
Market
CBD
# Blds
Total RBA
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
293,010
1,881,848
$54.99
$31.51
321
86,700,337
8,737,658
9,478,261
10.9%
402,749
Suburban
1,011
166,742,035
28,053,294
30,137,985
18.1%
(1,411,900)
452,800
3,640,182
Totals
1,332
253,442,372
36,790,952
39,616,246
15.6%
(1,009,151)
745,810
5,522,030
$38.56
First Quarter 2014
Existing Inventory
Market
CBD
# Blds
Total RBA
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
846
48,982,473
4,357,754
4,625,754
9.4%
(239,172)
0
74,349
$41.72
Suburban
3,626
126,723,014
19,511,283
20,126,487
15.9%
372,681
0
495,298
$26.22
Totals
4,472
175,705,487
23,869,037
24,752,241
14.1%
133,509
569,647
$29.65
0
Class C Market Statistics
First Quarter 2014
Existing Inventory
Total RBA
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
Market
# Blds
CBD
1,114
10,555,606
583,050
596,878
5.7%
97,042
0
0
$31.93
Suburban
3,032
25,895,714
2,028,422
2,040,122
7.9%
(55,551)
0
0
$22.13
Totals
4,146
36,451,320
2,611,472
2,637,000
7.2%
41,491
0
0
$24.02
Class A & B Market Statistics
First Quarter 2014
Existing Inventory
Vacancy
Market
# Blds
Total RBA
Direct SF
Total SF
Vac %
CBD
1,167
135,682,810
13,095,412
14,104,015
10.4%
Suburban
4,637
293,465,049
47,564,577
50,264,472
17.1%
Totals
5,804
429,147,859
60,659,989
64,368,487
15.0%
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
293,010
1,956,197
$50.37
452,800
4,135,480
$29.15
745,810
6,091,677
163,577
(1,039,219)
(875,642)
$34.82
Existing Inventory
First Quarter 2014
Vacancy
Market
# Blds
Total RBA
Direct SF
Total SF
Vac %
CBD
2,281
146,238,416
13,678,462
14,700,893
10.1%
Suburban
7,669
319,360,763
49,592,999
52,304,594
16.4%
Totals
9,950
465,599,179
63,271,461
67,005,487
14.4%
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
293,010
1,956,197
$49.84
452,800
4,135,480
$28.85
745,810
6,091,677
260,619
(1,094,770)
(834,151)
$34.40
19
FIGURES AT A GLANCE
Existing Inventory
Period
# Blds
2014 1q
2013 4q
2013 3q
2013 2q
2013 1q
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
1,332
1,327
1,320
1,312
1,308
1,305
1,293
1,281
1,263
1,228
1,168
1,120
1,063
1,039
1,013
992
Total RBA
253,442,372
252,696,562
251,029,668
249,963,564
249,101,730
248,869,106
246,287,948
243,859,608
239,647,226
233,069,927
224,309,007
215,643,288
206,127,135
200,433,261
194,698,513
188,973,765
First Quarter 2014
Vacancy
Direct SF
36,790,952
35,221,636
33,990,562
33,464,492
33,188,422
32,680,571
33,484,065
33,149,010
33,478,907
28,955,045
22,881,129
18,850,590
15,653,637
17,905,135
20,573,040
20,417,899
Net
Deliveries
Total SF
Vac %
Absorption
# Blds
39,616,246
37,861,285
36,497,227
36,317,607
36,152,487
35,610,469
36,419,974
36,466,785
37,602,709
32,298,136
25,534,740
21,041,962
18,369,846
22,221,186
25,368,522
27,123,803
15.6%
15.0%
14.5%
14.5%
14.5%
14.3%
14.8%
15.0%
15.7%
13.9%
11.4%
9.8%
8.9%
11.1%
13.0%
14.4%
(1,009,151)
302,836
886,484
696,714
(309,394)
3,390,663
2,475,151
5,348,306
1,272,726
1,997,524
4,172,941
6,844,037
9,545,214
8,882,084
7,480,029
4,366,585
5
7
8
4
3
12
12
18
35
60
49
57
24
26
22
56
Total RBA
745,810
1,666,894
1,066,104
861,834
232,624
2,581,158
2,428,340
4,212,382
6,577,299
8,760,920
8,794,676
9,516,153
5,693,874
5,734,748
5,978,347
9,992,585
UC Inventory
# Blds
23
24
28
34
35
34
23
18
27
53
80
72
73
51
39
35
Total RBA
5,522,030
4,952,840
6,404,954
7,125,702
7,376,279
7,177,627
4,702,154
3,823,526
6,495,770
11,476,642
13,764,146
14,592,572
14,570,685
13,219,537
11,172,707
11,808,869
Quoted
Rates
$38.56
$38.33
$38.23
$38.65
$38.94
$38.88
$38.21
$37.71
$37.27
$38.21
$37.77
$35.74
$33.79
$33.10
$30.73
$31.01
Existing Inventory
Period
# Blds
2014 1q
2013 4q
2013 3q
2013 2q
2013 1q
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
4,472
4,474
4,474
4,474
4,475
4,473
4,465
4,459
4,449
4,417
4,391
4,332
4,260
4,218
4,169
4,148
Total RBA
175,705,487
175,925,986
175,925,986
176,050,256
176,202,041
176,190,015
176,206,033
176,357,172
176,123,439
175,448,055
175,214,652
173,945,083
172,476,748
171,477,099
169,942,775
169,709,139
First Quarter 2014
Vacancy
Direct SF
23,869,037
24,120,923
24,101,871
24,330,171
24,204,884
23,689,017
21,096,510
19,739,595
19,118,951
17,467,145
16,302,534
13,655,743
13,929,010
15,537,029
15,336,023
13,710,642
Net
Deliveries
Total SF
Vac %
Absorption
# Blds
24,752,241
25,106,249
25,094,783
25,356,043
25,299,156
24,659,347
22,203,402
20,857,808
20,588,043
18,916,018
17,859,683
14,969,218
15,366,052
17,700,572
18,284,544
17,760,413
14.1%
14.3%
14.3%
14.4%
14.4%
14.0%
12.6%
11.8%
11.7%
10.8%
10.2%
8.6%
8.9%
10.3%
10.8%
10.5%
133,509
(11,466)
136,990
(208,672)
(627,783)
(2,471,963)
(1,496,733)
(36,032)
(996,641)
(822,932)
(1,620,896)
1,865,169
3,334,169
2,118,296
(290,495)
(2,039,523)
0
0
1
0
3
11
11
11
34
32
61
79
43
51
25
54
Total RBA
0
0
3,000
0
42,026
176,265
136,508
313,071
853,383
705,283
1,427,933
2,026,579
1,084,779
1,685,855
578,669
1,363,137
UC Inventory
# Blds
11
8
4
4
4
4
8
11
10
34
28
56
84
41
41
22
Total RBA
569,647
434,047
158,144
133,383
133,383
45,026
134,269
156,420
283,508
914,641
810,394
1,407,400
2,330,539
1,077,157
1,595,407
924,005
Quoted
Rates
$29.65
$29.71
$29.83
$29.73
$29.04
$28.51
$28.63
$28.40
$27.96
$28.76
$28.79
$28.39
$26.59
$25.77
$24.74
$25.42
Existing Inventory
Period
# Blds
2014 1q
2013 4q
2013 3q
2013 2q
2013 1q
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
9,950
9,949
9,943
9,936
9,933
9,928
9,914
9,898
9,870
9,803
9,722
9,617
9,483
9,423
9,348
9,312
Total RBA
465,599,179
465,104,565
463,487,921
462,552,441
461,842,392
461,597,742
459,579,305
457,321,974
452,928,639
445,681,626
436,750,527
427,024,173
416,188,617
409,897,592
402,769,926
397,438,613
First Quarter 2014
Vacancy
Direct SF
63,271,461
62,028,075
60,817,508
60,442,726
60,206,383
59,086,064
57,796,498
55,772,911
55,078,906
48,664,251
41,395,237
34,388,881
32,053,526
36,420,837
38,261,516
36,788,780
Net
Deliveries
Total SF
Vac %
Absorption
# Blds
67,005,487
65,676,722
64,368,933
64,370,767
64,297,922
63,017,934
61,864,749
60,247,359
60,760,288
53,491,782
45,640,324
37,965,388
36,254,048
42,991,682
46,081,722
47,624,581
14.4%
14.1%
13.9%
13.9%
13.9%
13.7%
13.5%
13.2%
13.4%
12.0%
10.4%
8.9%
8.7%
10.5%
11.4%
12.0%
(834,151)
308,855
937,314
637,204
(1,035,338)
865,252
639,941
4,906,264
(21,493)
1,079,641
2,051,418
9,124,216
13,028,659
10,217,706
6,874,172
2,528,069
5
7
9
4
6
23
23
31
71
92
115
145
70
82
50
123
Total RBA
745,810
1,666,894
1,069,104
861,834
274,650
2,757,423
2,564,848
4,529,058
7,435,659
9,466,203
10,284,512
11,595,066
6,791,955
7,486,920
6,593,161
11,634,313
UC Inventory
# Blds
34
32
32
38
39
38
31
29
38
88
108
132
165
95
85
59
Total RBA
6,091,677
5,386,887
6,563,098
7,259,085
7,509,662
7,222,653
4,836,423
3,979,946
6,780,323
12,392,750
14,574,540
16,051,463
16,955,171
14,309,996
12,834,431
12,741,119
Quoted
Rates
$34.40
$34.25
$34.28
$34.51
$34.46
$34.16
$33.80
$33.66
$33.39
$34.32
$34.00
$32.48
$30.43
$29.80
$28.29
$28.72
20
LEASING ACTIVITY
Historical Rental Rates
Based on Full-Service Equivalent Rental Rates
A
B
C
Total Market
$45.00
$40.00
Dollars/SF/Year
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
20
14
1q
2q
3q
13
20
12
20
20
20
11
4q
1q
2q
11
3q
10
20
09
4q
20
20
08
1q
2q
20
08
3q
07
20
4q
20
06
1q
20
05
2q
05
20
3q
04
20
03
20
20
02
4q
1q
2q
02
20
3q
01
20
4q
20
00
1q
19
99
2q
99
19
19
98
3q
4q
97
19
19
96
1q
2q
96
19
95
94
19
19
4q
1q
93
19
93
19
3q
$0.00
Vacancy by Available Space Type
Vacancy by Class
Percent of All Vacant Space in Direct vs. Sublet
Percent of All Vacant Space by Class
Washington
United States
6%
Washington
4%
United States
17%
4%
37%
35%
48%
94%
Direct
59%
96%
Sublet
Direct
Class A
Sublet
Class B
Class C
Class A
Class B
U.S. Rental Rate Comparison
Future Space Available
Based on Full-Service Equivalent Rental Rates
Space Scheduled to be Available for Occupancy*
Washington, D.C.
United States
7.0
$40.00
6.29
5.80
6.0
$35.00
$30.00
5.0
$25.00
4.0
Millions
Dollars/SF/Year
Class C
$20.00
3.0
3.28
2.59
$15.00
2.0
$10.00
$5.00
1.0
$0.00
0.0
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
2014 2q
2014 3q
* Includes Under Construction Spaces
2014 4q
2015 1q
0.00
0.01
2015 2q
2015 3q
21
LEASING ACTIVITY
Select Top Office Leases
Based on Leased Square Footage For Deals Signed in 2014
Building
Submarket
SF
Qtr
Tenant Name
Tenant Rep Company
Landlord Rep Company
1
Ashburn Crossing COPT Data Center Phase I
200,000
1st
Amazon.com
N/A
N/A
2
Argon Plaza*
Fairfax Center
165,000
1ST
Argon ST, Inc.
N/A
CBRE
3
Metro 4*
College Park
148,000
1st
National Center for Health Statistics
N/A
N/A
4
1015 Half St SE
Capitol Riverfront
143,116
1st
National Labor Relations Board
DTZ
Cassidy Turley
5
Wisconsin Place (Office)*
133,725
1st
Microsoft
N/A
N/A
6
Stafford Bldg*
Tysons Corner
123,960
1st
GSA
N/A
N/A
7
Franklin Court
East End
96,864
1st
Millennium Challenge
JLL
Cassidy Turley
8
Webb Building
Ballston
87,000
1st
Marymount University
Avison Young
Avison Young
9
Atlantic Corporate Park
82,697
1st
Bureau of Safety & Environmental Enforcement
JLL
CBRE
10
The Offices at Gallery Place*
East End
62,159
1st
District of Columbia Courts
N/A
Transwestern
11
E-Plus Headquarters*
Herndon
55,880
1st
ePlus, Inc.
Direct Deal
N/A
12
International Trade Commission Bldg*
Southwest
55,745
1st
Social Security Administration
N/A
Boston Properties, Inc.
13
Republic Square*
NoMa
52,944
1st
NationalCable&TelecommunicationsAssociation
Cresa Washington DC
N/A
14
The Woodies Bldg*
East End
48,410
1st
US Environmental Protection Agency
N/A
CBRE
15
Casimir Pulaski*
Capitol Hill
44,527
U.S. Department of Homeland Security
N/A
N/A
16
Homer Building*
East End
35,466
1st
Brown Rudnick LLP
Cushman & Wakefield, Inc.
Akridge
17
Arlington Tower
Rosslyn
33,815
1st
Graham Holdings Company
JM Zell Partners, Ltd.
Tishman Speyer
18
Capital Gateway Bldg II
North Bethesda/Potomac
31,192
1st
Healthy Directions, LLC
DTZ
Transwestern
19
Potomac Tower*
Rosslyn
30,839
1st
MCG Capital Corporation
Direct Deal
Brookfield Office Properties, Inc.
20
1200 New Hampshire Ave NW
CBD
30,387
1st
N/A
N/A
Newmark Grubb Knight Frank
21
Reston Square @ Reston Heights
Reston
30,316
1st
SES Government Solutions
Cresa Washington DC
Avison Young
22
Towers Crescent/A
Tysons Corner
30,244
1st
Capital One
JLL
23
One Bethesda Center*
29,500
1st
Paley Rothman
Cresa Washington DC
24
Bethesda Place I
28,477
1st
United Educators
Cresa Washington DC
N/A
25
Parkview at Spring Street
Silver Spring
25,425
1st
Associated Insurance Management
Cresa Washington DC
AMR Commercial, LLC
26
One Monument Place
Fairfax Center
25,339
1st
Schneider Electric
CBRE
JLL
27
7101 Wisconsin Ave
24,557
1st
United BioSource Corporation
N/A
N/A
28
1615 L St NW
CBD
24,352
1st
ThePewResearchCenterforthePeople&thePress
N/A
29
National Place
East End
24,229
1st
Futures Group Global
The Meyer Group
30
14850 Conference Center Dr
Route 28 Corridor South
23,131
1st
N/A
N/A
Corporate Office Properties Trust
31
Crystal Park Five
Crystal City
22,770
1st
American Public Power Association
MGA, Inc.
Vornado/Charles E. Smith
32
800 N Glebe Rd
Ballston
22,210
1st
Phacil
Serten Advisors, LLC
The JBG Companies
33
8280 Greensboro Dr*
Tysons Corner
22,024
1st
Circle Solutions, Inc.
N/A
CBRE
34
Metro 3*
College Park
22,000
1st
Employment Standards Administration
N/A
N/A
35
TransPotomac Canal Ctr 3
Old Town Alexandria
21,709
1st
N/A
N/A
CBRE
36
Key West Research Center Bldg 2
North Rockville
21,500
1st
N/A
N/A
J Street Companies
37
Worldgate Plaza I
Herndon
20,845
1st
MicroPact Engineering, Inc.
N/A
CBRE
38
Merritt III @ Loudoun Tech Center
20,539
1st
N/A
N/A
Merritt Properties, LLC
39
Commerce Center 1*
Greenbelt
19,650
1st
Stinger Ghaffarian Technologies, Inc.
N/A
NAI The Michael Companies, Inc.
40
Sumner Square
CBD
19,518
1st
N/A
N/A
Colliers International
* Renewal
22
SALES ACTIVITY
The Optimist Sales Index
Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter
Cap Rate
Price/SF
$900
7.0%
$800
$700
5.0%
$600
4.0%
$500
3.0%
$400
Dollars/SF
Cap Rate Percentage
6.0%
$300
2.0%
$200
1.0%
$100
0.0%
$0
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
Source: CoStar COMPS®
Sales Volume & Price
Sales Analysis by Building Size
Based on Office Building Sales of 15,000 SF and Larger
Based on Office Building Sales From Jan. 2013 - Dec. 2013
Sales Volume
Bldg Size
Price/SF
$400
$3,000
RBA
$ Volume
Price/SF
Cap Rate
< 50,000 SF
284
2,593,553
$
578,872,408
$ 223.20
6.95%
50K-249K SF
60
7,250,594
$
2,199,111,258
$ 303.30
6.94%
250K-499K SF
13
4,504,049
$
1,630,380,106
$ 361.98
5.60%
>500K SF
3
2,845,476
$
788,000,000
$ 276.93
6.20%
$350
$2,500
$300
$2,000
$250
$1,500
$200
$150
$1,000
Price/SF
Millions of Sales Volume Dollars
#
$450
$3,500
$100
$500
$50
$0
$0
2010 1q 2010 3q 2011 1q 2011 3q 2012 1q 2012 3q 2013 1q 2013 3q
U.S. Price/SF Comparison
U.S. Cap Rate Comparison
Washington
$470
US
$420
US
8.0%
Cap Rate Percentage
$370
Dollars per SF
Washington
9.0%
$320
$270
$220
$170
$120
7.0%
6.0%
5.0%
4.0%
$70
$20
3.0%
2010
1q
2010
3q
2011
1q
2011
3q
2012
1q
2012
3q
2013
1q
2013
3q
2010
1q
2010
3q
2011
1q
2011
3q
2012
1q
2012
3q
2013
1q
2013
3q
23
SALES ACTIVITY
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
24
A L E X A N D R I A / I - 3 9 5
A R E A
MARKET HIGHLIGHTS – CLASS “A, B & C”
M A R K E T
Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF
0.400
Absorption SF
Vacancy
25.0%
0.200
20.0%
15.0%
(0.200)
(0.400)
10.0%
Percent Vacant
Millions SF
0.000
(0.600)
5.0%
(0.800)
(1.000)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Direct SF
8.60
$35.50
Sublet SF
8.40
$35.00
Dollars/SF/Year
Millions SF
8.20
8.00
7.80
7.60
7.40
7.20
$34.50
$34.00
$33.50
7.00
$33.00
6.80
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
835
38,740,051
Vacancy
Vacant SF
Vacancy %
8,266,380
21.3%
Net
Absorption
132,339
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
2
770,000
Quoted
Rates
$33.84
2013 4q
835
38,740,051
8,398,719
21.7%
(31,029)
2
322,000
0
0
$34.93
2013 3q
833
38,418,051
8,045,690
20.9%
97,393
1
308,898
2
322,000
$34.73
2013 2q
832
38,109,153
7,834,185
20.6%
(80,048)
0
0
3
630,898
$34.63
2013 1q
832
38,109,153
7,754,137
20.3%
34,730
0
0
3
630,898
$35.20
2012 4q
832
38,109,153
7,788,867
20.4%
(447,191)
0
0
3
630,898
$35.55
2012 3q
832
38,109,153
7,341,676
19.3%
(446,860)
0
0
3
630,898
$35.75
2012 2q
832
38,109,153
6,894,816
18.1%
(484,813)
1
15,000
1
308,898
$35.91
2012 1q
832
38,114,153
6,415,003
16.8%
(700,476)
0
0
1
15,000
$34.94
2011 4q
832
38,114,153
5,714,527
15.0%
(543,524)
0
0
1
15,000
$34.96
2011 3q
832
38,114,153
5,171,003
13.6%
(817,245)
0
0
1
15,000
$34.39
2011 2q
832
38,114,153
4,353,758
11.4%
(264,403)
0
0
1
15,000
$33.80
2011 1q
832
38,114,153
4,089,355
10.7%
(45,442)
0
0
1
15,000
$34.03
2010 4q
832
38,114,153
4,043,913
10.6%
224,604
0
0
1
15,000
$33.97
2010 3q
832
38,114,153
4,268,517
11.2%
5,998
0
0
1
15,000
$33.98
2010 2q
832
38,114,153
4,274,515
11.2%
168,150
0
0
1
15,000
$34.34
25
B E T H E S D A / C H E V Y
C H A S E
M A R K E T
Delivered SF
Absorption SF
Vacancy
12.0%
0.100
10.0%
0.050
8.0%
0.000
6.0%
(0.050)
4.0%
(0.100)
2.0%
(0.150)
Percent Vacant
Millions SF
0.150
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
1.40
$37.00
Sublet SF
$36.80
1.20
$36.60
Dollars/SF/Year
Millions SF
1.00
0.80
0.60
$36.40
$36.20
0.40
$36.00
0.20
$35.80
$35.60
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
240
11,960,203
Vacancy
Vacant SF
Vacancy %
1,114,059
9.3%
Net
Absorption
(72,994)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
1
226,566
Quoted
Rates
$36.42
2013 4q
240
11,960,203
1,041,065
8.7%
57,342
0
0
1
226,566
$36.83
2013 3q
240
11,960,203
1,098,407
9.2%
105,847
0
0
1
226,566
$36.71
2013 2q
240
11,960,203
1,204,254
10.1%
30,576
0
0
1
226,566
$36.92
2013 1q
240
11,960,203
1,234,830
10.3%
(68,392)
0
0
1
226,566
$36.08
2012 4q
240
11,960,203
1,166,438
9.8%
(20,974)
0
0
1
226,566
$35.80
2012 3q
240
11,960,203
1,145,464
9.6%
(43,935)
0
0
0
0
$36.02
2012 2q
240
11,960,203
1,101,529
9.2%
(38,302)
0
0
0
0
$35.80
2012 1q
240
11,960,203
1,063,227
8.9%
83,568
0
0
0
0
$35.26
2011 4q
240
11,960,203
1,146,795
9.6%
134,447
0
0
0
0
$34.88
2011 3q
240
11,960,203
1,281,242
10.7%
(120,717)
0
0
0
0
$34.68
2011 2q
241
11,968,333
1,168,655
9.8%
(94,121)
1
5,074
0
0
$34.55
2011 1q
240
11,963,259
1,069,460
8.9%
10,514
0
0
1
5,074
$34.05
2010 4q
240
11,963,259
1,079,974
9.0%
101,331
0
0
1
5,074
$34.31
2010 3q
240
11,963,259
1,181,305
9.9%
(18,571)
0
0
1
5,074
$34.04
2010 2q
240
11,963,259
1,162,734
9.7%
121,813
0
0
0
0
$34.53
26
C A P I T O L
H I L L
A R E A
M A R K E T
Delivered SF
Absorption SF
Vacancy
18.0%
1.000
16.0%
0.800
14.0%
0.600
12.0%
0.400
10.0%
0.200
8.0%
0.000
6.0%
(0.200)
4.0%
(0.400)
2.0%
(0.600)
Percent Vacant
Millions SF
1.200
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
4.50
$49.00
Sublet SF
$48.95
4.00
$48.90
Dollars/SF/Year
Millions SF
3.50
3.00
2.50
2.00
1.50
$48.85
$48.80
$48.75
$48.70
$48.65
1.00
$48.60
0.50
$48.55
$48.50
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
467
34,059,917
Vacancy
Vacant SF
Vacancy %
4,163,298
12.2%
Net
Absorption
(29,536)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
2
552,000
Quoted
Rates
$48.94
2013 4q
468
34,193,596
4,267,441
12.5%
(31,786)
2
652,524
0
0
$48.76
2013 3q
466
33,541,072
3,583,131
10.7%
(155,613)
0
0
2
652,524
$48.77
2013 2q
466
33,541,072
3,427,518
10.2%
505,748
1
450,000
2
652,524
$48.66
2013 1q
465
33,091,072
3,483,266
10.5%
(253,572)
0
0
3
1,102,524
$48.74
2012 4q
465
33,091,072
3,229,694
9.8%
125,172
0
0
3
1,102,524
$48.93
2012 3q
465
33,091,072
3,354,866
10.1%
517,790
0
0
3
1,102,524
$49.08
2012 2q
465
33,091,072
3,872,656
11.7%
32,442
0
0
3
1,102,524
$48.78
2012 1q
465
33,091,072
3,905,098
11.8%
937,706
1
4,690
3
1,102,524
$48.62
2011 4q
466
33,546,382
5,298,114
15.8%
(374,468)
0
0
3
817,690
$49.00
2011 3q
466
33,546,382
4,923,646
14.7%
403,163
1
391,592
2
454,690
$49.07
2011 2q
466
33,166,530
4,946,957
14.9%
(92,895)
0
0
3
846,282
$49.06
2011 1q
466
33,166,530
4,854,062
14.6%
590,472
0
0
2
841,592
$49.55
2010 4q
466
33,166,530
5,444,534
16.4%
690,460
0
0
1
391,592
$49.81
2010 3q
466
33,166,530
6,134,994
18.5%
55,924
0
0
1
391,592
$49.11
2010 2q
466
33,166,530
6,190,918
18.7%
947,904
4
1,502,664
1
391,592
$49.14
27
D O W N T O W N
D C
M A R K E T
Delivered SF
0.600
Absorption SF
Vacancy
10.4%
0.500
10.2%
0.400
10.0%
0.200
9.8%
0.100
9.6%
0.000
9.4%
(0.100)
(0.200)
Percent Vacant
Millions SF
0.300
9.2%
(0.300)
9.0%
(0.400)
(0.500)
8.8%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
10.50
$52.50
Sublet SF
$52.00
Dollars/SF/Year
Millions SF
10.00
9.50
9.00
8.50
$51.00
$50.50
$50.00
$49.50
8.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$51.50
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
816
97,141,171
Vacancy
Vacant SF
Vacancy %
9,532,897
9.8%
Net
Absorption
193,002
Delivered Inventory
# Bldgs
Total RBA
1
293,010
UC Inventory
# Bldgs
Total RBA
5
1,329,848
Quoted
Rates
$52.22
2013 4q
815
96,848,161
9,432,889
9.7%
226,865
1
121,987
6
1,622,858
$50.88
2013 3q
814
96,726,174
9,537,767
9.9%
446,706
1
135,000
7
1,744,845
$50.56
2013 2q
813
96,591,174
9,849,473
10.2%
(7,044)
0
0
8
1,879,845
$50.66
2013 1q
814
96,742,959
9,994,214
10.3%
(285,120)
1
42,685
6
1,289,497
$51.31
2012 4q
813
96,700,274
9,666,409
10.0%
(126,693)
0
0
6
1,163,413
$51.49
2012 3q
814
96,783,461
9,622,903
9.9%
(27,349)
0
0
5
875,613
$51.43
2012 2q
814
96,783,461
9,595,554
9.9%
196,477
1
385,791
5
875,613
$51.13
2012 1q
813
96,397,670
9,406,240
9.8%
(362,952)
0
0
5
1,139,417
$50.83
2011 4q
816
96,461,469
9,107,087
9.4%
467,238
1
169,271
5
1,139,417
$50.29
2011 3q
816
96,346,975
9,459,831
9.8%
386,402
0
0
4
1,131,003
$50.73
2011 2q
816
96,346,975
9,846,233
10.2%
(410,678)
0
0
4
1,131,003
$50.39
2011 1q
816
96,346,975
9,435,555
9.8%
52,019
1
432,900
2
555,062
$50.50
2010 4q
816
95,969,685
9,110,284
9.5%
34,223
0
0
3
987,962
$50.51
2010 3q
816
95,969,685
9,144,507
9.5%
504,915
1
365,000
3
987,962
$50.31
2010 2q
816
95,615,545
9,295,282
9.7%
61,810
0
0
4
1,352,962
$49.38
28
D U L L E S
C O R R I D O R
M A R K E T
Delivered SF
0.600
Absorption SF
Vacancy
18.0%
0.500
17.5%
17.0%
0.300
16.5%
0.200
16.0%
0.100
15.5%
0.000
Percent Vacant
Millions SF
0.400
15.0%
(0.100)
14.5%
(0.200)
(0.300)
14.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
9.20
$26.20
Sublet SF
$26.10
8.80
$26.00
8.60
$25.90
Dollars/SF/Year
Millions SF
9.00
8.40
8.20
8.00
7.80
7.60
$25.70
$25.60
$25.50
$25.40
7.40
$25.30
7.20
$25.20
7.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$25.80
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
752
55,684,549
Vacancy
Vacant SF
Vacancy %
8,550,816
15.4%
Net
Absorption
70,264
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
3
424,099
Quoted
Rates
$25.57
2013 4q
752
55,684,549
8,621,080
15.5%
121,635
0
0
3
424,099
$25.86
2013 3q
752
55,684,549
8,742,715
15.7%
556,165
1
254,578
1
175,000
$26.12
2013 2q
751
55,429,971
9,044,302
16.3%
91,029
1
104,067
2
429,578
$25.98
2013 1q
750
55,325,904
9,031,264
16.3%
59,750
0
0
3
533,645
$26.09
2012 4q
750
55,325,904
9,091,014
16.4%
(111,497)
1
9,800
3
533,645
$26.22
2012 3q
749
55,316,104
8,969,717
16.2%
54,235
0
0
4
543,445
$26.46
2012 2q
749
55,316,104
9,023,952
16.3%
6,143
0
0
4
543,445
$26.30
2012 1q
749
55,316,104
9,030,095
16.3%
128,829
0
0
3
533,645
$26.20
2011 4q
749
55,316,104
9,158,924
16.6%
(258,461)
0
0
1
104,067
$26.01
2011 3q
749
55,316,104
8,900,463
16.1%
513,140
1
141,000
0
0
$26.21
2011 2q
748
55,175,104
9,272,603
16.8%
456,029
0
0
1
141,000
$26.45
2011 1q
748
55,175,104
9,728,632
17.6%
(211,572)
0
0
1
141,000
$26.50
2010 4q
748
55,175,104
9,517,060
17.2%
(60,939)
0
0
1
141,000
$26.56
2010 3q
748
55,175,104
9,456,121
17.1%
280,296
1
7,000
1
141,000
$25.96
2010 2q
747
55,168,104
9,729,417
17.6%
470,022
1
525,000
2
148,000
$26.07
29
E
P R I N C E
G E O R G E S
C O U N T Y
M A R K E T
Delivered SF
Absorption SF
Vacancy
16.0%
0.030
14.0%
0.020
12.0%
0.010
10.0%
0.000
8.0%
(0.010)
6.0%
(0.020)
4.0%
(0.030)
2.0%
(0.040)
Percent Vacant
Millions SF
0.040
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.35
$25.00
Sublet SF
0.30
$20.00
Dollars/SF/Year
Millions SF
0.25
0.20
0.15
$15.00
$10.00
0.10
$5.00
0.05
$0.00
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
112
2,329,915
Vacancy
Vacant SF
Vacancy %
267,362
11.5%
Net
Absorption
(25,937)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$21.51
2013 4q
112
2,329,915
241,425
10.4%
27,749
0
0
0
0
$20.52
2013 3q
112
2,329,915
269,174
11.6%
5,767
0
0
0
0
$19.70
2013 2q
112
2,329,915
274,941
11.8%
27,977
0
0
0
0
$22.05
2013 1q
112
2,329,915
302,918
13.0%
(27,352)
0
0
0
0
$17.37
2012 4q
112
2,329,915
275,566
11.8%
5,019
0
0
0
0
$17.40
2012 3q
112
2,329,915
280,585
12.0%
4,454
0
0
0
0
$17.58
2012 2q
112
2,329,915
285,039
12.2%
3,592
0
0
0
0
$16.91
2012 1q
112
2,329,915
288,631
12.4%
(2,710)
0
0
0
0
$17.95
2011 4q
112
2,329,915
285,921
12.3%
313
0
0
0
0
$16.87
2011 3q
112
2,329,915
286,234
12.3%
2,101
0
0
0
0
$20.91
2011 2q
112
2,329,915
288,335
12.4%
30,694
0
0
0
0
$21.00
2011 1q
112
2,329,915
319,029
13.7%
(1,492)
0
0
0
0
$21.23
2010 4q
112
2,329,915
317,537
13.6%
45,909
1
40,268
0
0
$21.64
2010 3q
111
2,289,647
323,178
14.1%
29,413
0
0
1
40,268
$22.17
2010 2q
111
2,289,647
352,591
15.4%
39,605
0
0
1
40,268
$22.96
30
E A S T
F A L L S
C H U R C H
M A R K E T
Delivered SF
0.012
Absorption SF
Vacancy
9.0%
0.010
8.0%
0.008
7.0%
Millions SF
6.0%
0.004
5.0%
0.002
4.0%
0.000
3.0%
(0.002)
(0.004)
2.0%
(0.006)
1.0%
(0.008)
Percent Vacant
0.006
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
$35.00
Sublet SF
0.06
$30.00
0.06
$25.00
Dollars/SF/Year
Millions SF
0.06
0.06
0.05
0.05
0.05
$15.00
$10.00
$5.00
0.05
$0.00
0.05
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$20.00
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
53
914,880
Vacancy
Vacant SF
Vacancy %
59,804
6.5%
Net
Absorption
(1,806)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$29.51
2013 4q
53
914,880
57,998
6.3%
2,500
0
0
0
0
$29.20
2013 3q
53
914,880
60,498
6.6%
(6,239)
0
0
0
0
$28.93
2013 2q
53
914,880
54,259
5.9%
(2,378)
0
0
0
0
$28.03
2013 1q
53
914,880
51,881
5.7%
7,725
0
0
0
0
$24.04
2012 4q
53
914,880
59,606
6.5%
1,525
0
0
0
0
$24.05
2012 3q
53
914,880
61,131
6.7%
(3,200)
0
0
0
0
$24.08
2012 2q
53
914,880
57,931
6.3%
7,614
0
0
0
0
$31.90
2012 1q
53
914,880
65,545
7.2%
613
0
0
0
0
$31.92
2011 4q
53
914,880
66,158
7.2%
500
0
0
0
0
$31.97
2011 3q
53
914,880
66,658
7.3%
10,492
0
0
0
0
$31.70
2011 2q
53
914,880
77,150
8.4%
(4,604)
0
0
0
0
$32.27
2011 1q
53
914,880
72,546
7.9%
(6,653)
0
0
0
0
$32.30
2010 4q
53
914,880
65,893
7.2%
0
0
0
0
$32.05
2010 3q
53
914,880
65,949
7.2%
(36,240)
0
0
0
0
$32.44
2010 2q
53
914,880
29,709
3.2%
(3,486)
0
0
0
0
$32.17
56
31
F R E D E R I C K
M A R K E T
Delivered SF
Absorption SF
Vacancy
18.0%
0.100
16.0%
0.050
14.0%
0.000
12.0%
(0.050)
10.0%
(0.100)
8.0%
(0.150)
6.0%
(0.200)
4.0%
(0.250)
2.0%
(0.300)
Percent Vacant
Millions SF
0.150
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
$21.00
Sublet SF
1.24
$20.80
1.22
$20.60
Dollars/SF/Year
Millions SF
1.26
1.20
1.18
1.16
1.14
$20.20
$20.00
$19.80
1.12
$19.60
1.10
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$20.40
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
633
8,363,395
Vacancy
Vacant SF
Vacancy %
1,162,803
13.9%
Net
Absorption
25,801
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
4
120,009
Quoted
Rates
$20.84
2013 4q
633
8,363,395
1,188,604
14.2%
28,197
0
0
3
77,009
$20.13
2013 3q
633
8,363,395
1,216,801
14.5%
(33,812)
0
0
2
47,009
$20.84
2013 2q
633
8,363,395
1,182,989
14.1%
51,650
0
0
2
47,009
$20.74
2013 1q
633
8,363,395
1,234,639
14.8%
(6,005)
0
0
1
26,100
$20.62
2012 4q
634
8,393,395
1,258,634
15.0%
(21,057)
0
0
0
0
$21.24
2012 3q
634
8,393,395
1,237,577
14.7%
(56,712)
0
0
0
0
$21.14
2012 2q
634
8,393,395
1,180,865
14.1%
106,445
0
0
0
0
$22.16
2012 1q
634
8,393,395
1,287,310
15.3%
66,520
0
0
0
0
$22.01
2011 4q
634
8,393,395
1,353,830
16.1%
2,718
0
0
0
0
$22.63
2011 3q
634
8,393,395
1,356,548
16.2%
(244,931)
0
0
0
0
$22.86
2011 2q
634
8,393,395
1,111,617
13.2%
11,989
0
0
0
0
$23.00
2011 1q
634
8,393,395
1,123,606
13.4%
79,063
0
0
0
0
$22.98
2010 4q
634
8,393,395
1,202,669
14.3%
(87,208)
0
0
0
0
$23.23
2010 3q
634
8,393,395
1,115,461
13.3%
24,731
0
0
0
0
$22.79
2010 2q
634
8,393,395
1,140,192
13.6%
(33,599)
1
34,788
0
0
$23.29
32
G E O R G E T O W N / U P T O W N
M A R K E T
Delivered SF
Absorption SF
Vacancy
10.0%
0.150
9.0%
0.100
8.0%
7.0%
0.050
6.0%
0.000
5.0%
(0.050)
4.0%
(0.100)
Percent Vacant
Millions SF
0.200
3.0%
(0.150)
2.0%
(0.200)
1.0%
(0.250)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
1.60
$39.40
Sublet SF
$39.30
1.40
$39.20
Dollars/SF/Year
Millions SF
1.20
1.00
0.80
0.60
$39.10
$39.00
$38.90
0.40
$38.80
0.20
$38.70
$38.60
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
800
16,669,351
Vacancy
Vacant SF
Vacancy %
1,123,593
6.7%
Net
Absorption
91,642
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
2
74,349
Quoted
Rates
$39.24
2013 4q
800
16,669,351
1,215,235
7.3%
62,776
0
0
2
74,349
$38.86
2013 3q
800
16,669,351
1,278,011
7.7%
113,971
0
0
2
74,349
$39.24
2013 2q
801
16,675,705
1,398,336
8.4%
51,650
0
0
1
46,588
$39.13
2013 1q
801
16,675,705
1,449,986
8.7%
(146,917)
0
0
1
46,588
$39.35
2012 4q
801
16,675,705
1,303,069
7.8%
91,444
1
98,243
0
0
$39.90
2012 3q
801
16,629,462
1,348,270
8.1%
22,041
0
0
1
98,243
$38.99
2012 2q
801
16,629,462
1,370,311
8.2%
166,395
1
40,828
1
98,243
$38.51
2012 1q
800
16,588,634
1,495,878
9.0%
(19,611)
0
0
2
139,071
$39.07
2011 4q
800
16,588,634
1,476,267
8.9%
13,876
1
1,243
2
139,071
$38.59
2011 3q
800
16,650,198
1,551,707
9.3%
(216,328)
0
0
3
140,314
$38.42
2011 2q
800
16,650,198
1,335,379
8.0%
105,323
0
0
3
140,314
$38.40
2011 1q
800
16,650,198
1,440,702
8.7%
80,268
1
140,000
3
140,314
$38.30
2010 4q
799
16,510,198
1,380,970
8.4%
43,519
2
5,653
2
180,828
$37.76
2010 3q
797
16,504,545
1,418,836
8.6%
115,523
0
0
4
186,481
$37.08
2010 2q
797
16,504,545
1,534,359
9.3%
(57,529)
0
0
3
145,653
$37.82
33
G R E A T E R
F A I R F A X
C O U N T Y
M A R K E T
Delivered SF
0.700
Absorption SF
Vacancy
15.5%
0.600
15.0%
0.500
Millions SF
14.5%
0.300
14.0%
0.200
0.100
13.5%
0.000
(0.100)
Percent Vacant
0.400
13.0%
(0.200)
(0.300)
12.5%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
9.20
$31.00
Sublet SF
9.00
$30.50
8.80
Dollars/SF/Year
Millions SF
8.60
8.40
8.20
8.00
7.80
7.60
$30.00
$29.50
$29.00
$28.50
7.40
$28.00
7.20
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
1,179
61,274,844
Vacancy
Vacant SF
Vacancy %
9,029,754
14.7%
Net
Absorption
(149,409)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
5
1,457,028
Quoted
Rates
$29.30
2013 4q
1,179
61,274,844
8,880,345
14.5%
(21,128)
0
0
5
1,457,028
$29.25
2013 3q
1,179
61,274,844
8,859,217
14.5%
(137,497)
1
30,000
4
1,436,364
$29.09
2013 2q
1,178
61,244,844
8,691,720
14.2%
(132,425)
0
0
4
1,144,399
$30.71
2013 1q
1,178
61,244,844
8,559,295
14.0%
1
5,377
4
1,144,399
$30.62
2012 4q
1,177
61,239,467
8,555,487
14.0%
(211,978)
0
0
4
1,037,269
$31.21
2012 3q
1,177
61,239,467
8,343,509
13.6%
202,841
3
113,499
4
1,037,269
$31.19
2012 2q
1,174
61,125,968
8,432,851
13.8%
173,627
0
0
7
1,150,768
$31.22
2012 1q
1,174
61,125,968
8,606,478
14.1%
(230,979)
0
0
5
620,412
$29.82
2011 4q
1,174
61,125,968
8,375,499
13.7%
222,380
0
0
4
143,499
$28.72
2011 3q
1,174
61,125,968
8,597,879
14.1%
575,468
0
0
4
143,499
$28.98
2011 2q
1,175
61,198,851
9,246,230
15.1%
6,289
0
0
1
78,499
$28.81
2011 1q
1,175
61,198,851
9,252,519
15.1%
139,012
0
0
0
0
$29.06
2010 4q
1,175
61,198,851
9,391,531
15.3%
29,214
0
0
0
0
$28.92
2010 3q
1,175
61,198,851
9,420,745
15.4%
(87,299)
0
0
0
0
$28.63
2010 2q
1,175
61,198,851
9,333,446
15.3%
(374,150)
1
24,987
0
0
$28.70
1,569
34
I - 2 7 0
C O R R I D O R
M A R K E T
Delivered SF
1.200
Absorption SF
Vacancy
17.0%
1.000
16.5%
0.800
16.0%
Millions SF
15.5%
0.400
15.0%
0.200
14.5%
0.000
14.0%
(0.200)
(0.400)
13.5%
(0.600)
13.0%
(0.800)
Percent Vacant
0.600
12.5%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
9.00
$27.60
Sublet SF
$27.40
8.00
$27.20
Dollars/SF/Year
Millions SF
7.00
6.00
5.00
4.00
3.00
$27.00
$26.80
$26.60
2.00
$26.40
1.00
$26.20
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
805
46,403,104
Vacancy
Vacant SF
Vacancy %
7,744,910
16.7%
Net
Absorption
(594,313)
Delivered Inventory
# Bldgs
Total RBA
1
110,000
3,029
UC Inventory
# Bldgs
Total RBA
5
883,563
Quoted
Rates
$26.69
2013 4q
805
46,295,304
7,042,797
15.2%
0
0
5
913,563
$26.83
2013 3q
806
46,345,554
7,096,076
15.3%
(207,093)
1
41,156
5
913,563
$27.00
2013 2q
805
46,304,398
6,847,827
14.8%
145,969
1
197,720
5
931,328
$27.04
2013 1q
804
46,106,678
6,796,076
14.7%
80,329
1
162,285
6
1,129,048
$27.43
2012 4q
803
45,944,393
6,714,120
14.6%
858,896
2
943,570
6
1,181,333
$27.32
2012 3q
801
45,000,823
6,629,446
14.7%
(45,077)
0
0
8
2,124,903
$27.42
2012 2q
801
45,000,823
6,584,369
14.6%
52,216
0
0
8
2,124,903
$27.57
2012 1q
801
45,000,823
6,636,585
14.7%
(35,613)
1
11,476
6
1,914,103
$27.38
2011 4q
800
44,989,347
6,589,496
14.6%
(279,657)
0
0
4
729,921
$27.45
2011 3q
800
44,989,347
6,309,839
14.0%
314,078
1
7,750
4
729,921
$27.39
2011 2q
799
44,981,597
6,616,167
14.7%
253,067
1
115,000
3
528,475
$27.64
2011 1q
798
44,866,597
6,754,234
15.1%
(96,316)
1
25,124
3
481,190
$27.44
2010 4q
797
44,841,473
6,632,794
14.8%
36,402
1
20,000
4
506,314
$27.41
2010 3q
796
44,821,473
6,649,196
14.8%
305,688
0
0
4
518,564
$27.53
2010 2q
797
44,900,811
7,034,222
15.7%
42,518
0
0
4
518,564
$27.51
35
L E E S B U R G / R O U T E
7
C O R R I D O R
M A R K E T
Delivered SF
Absorption SF
Vacancy
20.0%
0.160
18.0%
0.140
16.0%
0.120
14.0%
0.100
12.0%
0.080
10.0%
0.060
8.0%
0.040
6.0%
0.020
4.0%
0.000
2.0%
(0.020)
Percent Vacant
Millions SF
0.180
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.98
$25.20
Sublet SF
0.97
$25.10
0.96
$25.00
Dollars/SF/Year
Millions SF
0.95
0.94
0.93
0.92
0.91
$24.90
$24.80
$24.70
$24.60
0.90
$24.50
0.89
$24.40
0.88
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
390
7,754,717
Vacancy
Vacant SF
Vacancy %
933,895
12.0%
Net
Absorption
(6,096)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
2
61,281
Quoted
Rates
$24.68
2013 4q
390
7,754,717
927,799
12.0%
20,368
0
0
1
55,681
$25.11
2013 3q
390
7,754,717
948,167
12.2%
80,421
2
57,000
0
0
$24.84
2013 2q
388
7,697,717
971,588
12.6%
(10,858)
0
0
2
57,000
$25.12
2013 1q
388
7,697,717
960,730
12.5%
27,199
1
27,654
2
57,000
$24.70
2012 4q
387
7,670,063
960,275
12.5%
102,421
2
36,996
3
84,654
$24.66
2012 3q
385
7,633,067
1,025,700
13.4%
21,547
0
0
5
121,650
$24.97
2012 2q
385
7,633,067
1,047,247
13.7%
67,279
0
0
4
67,650
$25.15
2012 1q
385
7,633,067
1,114,526
14.6%
13,980
1
13,303
3
39,996
$25.46
2011 4q
384
7,619,764
1,115,203
14.6%
74,419
1
7,148
2
24,603
$25.38
2011 3q
383
7,612,616
1,182,474
15.5%
48,695
1
10,000
3
31,751
$25.55
2011 2q
382
7,602,616
1,221,169
16.1%
158,539
1
90,539
3
30,451
$25.74
2011 1q
381
7,512,077
1,289,169
17.2%
71,139
0
0
4
120,990
$25.73
2010 4q
381
7,512,077
1,360,308
18.1%
28,761
0
0
3
113,842
$25.90
2010 3q
381
7,512,077
1,389,069
18.5%
(7,074)
0
0
2
103,842
$26.21
2010 2q
381
7,512,077
1,381,995
18.4%
33,033
0
0
2
103,842
$26.34
36
M A N A S S A S / R O U T E
2 9 / I - 6 6
M A R K E T
Delivered SF
Absorption SF
Vacancy
15.0%
0.040
14.5%
0.020
14.0%
0.000
13.5%
(0.020)
13.0%
(0.040)
12.5%
(0.060)
Percent Vacant
Millions SF
0.060
12.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.82
$21.05
Sublet SF
0.80
$21.00
Dollars/SF/Year
Millions SF
0.78
0.76
0.74
0.72
$20.95
$20.90
$20.85
0.70
$20.80
0.68
$20.75
0.66
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
352
5,600,347
Vacancy
Vacant SF
Vacancy %
735,372
13.1%
Net
Absorption
49,700
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$20.90
2013 4q
352
5,600,347
785,072
14.0%
(39,904)
0
0
0
0
$20.84
2013 3q
352
5,600,347
745,168
13.3%
21,625
0
0
0
0
$20.92
2013 2q
352
5,600,347
766,793
13.7%
41,825
0
0
0
0
$21.00
2013 1q
352
5,600,347
808,618
14.4%
(12,718)
1
945
0
0
$20.86
2012 4q
351
5,599,402
794,955
14.2%
(27,249)
0
0
1
945
$20.50
2012 3q
351
5,599,402
767,706
13.7%
52,350
0
0
1
945
$21.19
2012 2q
351
5,599,402
820,056
14.6%
22,940
1
45,000
1
945
$21.44
2012 1q
350
5,554,402
797,996
14.4%
(48,359)
0
0
1
45,000
$21.29
2011 4q
350
5,554,402
749,637
13.5%
47,115
0
0
1
45,000
$21.55
2011 3q
350
5,554,402
796,752
14.3%
16,622
0
0
1
45,000
$21.84
2011 2q
350
5,554,402
813,374
14.6%
(4,453)
0
0
1
45,000
$21.75
2011 1q
350
5,554,402
808,921
14.6%
19,344
0
0
1
45,000
$21.65
2010 4q
350
5,554,402
828,265
14.9%
(12,535)
0
0
0
0
$21.50
2010 3q
350
5,554,402
815,730
14.7%
(11,740)
0
0
0
0
$21.65
2010 2q
350
5,554,402
803,990
14.5%
55,562
0
0
0
0
$22.02
37
N
P R I N C E
G E O R G E S
C O U N T Y
M A R K E T
Delivered SF
0.400
Absorption SF
Vacancy
25.0%
0.300
0.200
20.0%
Millions SF
0.000
15.0%
(0.100)
(0.200)
10.0%
Percent Vacant
0.100
(0.300)
(0.400)
5.0%
(0.500)
(0.600)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
4.50
$20.20
Sublet SF
4.40
$20.10
4.30
Dollars/SF/Year
Millions SF
4.20
4.10
4.00
3.90
3.80
3.70
$20.00
$19.90
$19.80
$19.70
3.60
$19.60
3.50
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
694
19,370,926
Vacancy
Vacant SF
Vacancy %
4,375,258
22.6%
Net
Absorption
(465,608)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
1
110,000
Quoted
Rates
$20.14
2013 4q
694
19,370,926
3,909,650
20.2%
(20,199)
0
0
1
110,000
$20.10
2013 3q
694
19,370,926
3,889,451
20.1%
53,920
0
0
0
0
$19.96
2013 2q
694
19,370,926
3,943,371
20.4%
(17,301)
0
0
0
0
$19.94
2013 1q
694
19,370,926
3,926,070
20.3%
(118,505)
0
0
0
0
$19.78
2012 4q
694
19,370,926
3,807,565
19.7%
(52,891)
0
0
0
0
$19.69
2012 3q
694
19,370,926
3,754,674
19.4%
100,882
0
0
0
0
$19.88
2012 2q
694
19,370,926
3,855,556
19.9%
209,224
1
268,762
0
0
$20.04
2012 1q
693
19,102,164
3,796,018
19.9%
(186,593)
0
0
1
268,762
$20.00
2011 4q
693
19,102,164
3,609,425
18.9%
(15,175)
0
0
1
268,762
$20.26
2011 3q
693
19,102,164
3,594,250
18.8%
53,659
0
0
1
268,762
$20.31
2011 2q
693
19,102,164
3,647,909
19.1%
(187,595)
0
0
1
268,762
$20.16
2011 1q
693
19,102,164
3,460,314
18.1%
132,733
0
0
1
268,762
$19.77
2010 4q
693
19,102,164
3,593,047
18.8%
52,024
0
0
1
268,762
$20.05
2010 3q
693
19,102,164
3,645,071
19.1%
(83,285)
0
0
1
268,762
$20.01
2010 2q
693
19,102,164
3,561,786
18.6%
37,512
0
0
0
0
$20.18
38
N O R T H E A S T / S O U T H E A S T
M A R K E T
Delivered SF
0.100
Absorption SF
Vacancy
30.0%
0.080
25.0%
20.0%
0.040
15.0%
0.020
10.0%
0.000
Percent Vacant
Millions SF
0.060
5.0%
(0.020)
(0.040)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.80
$40.00
Sublet SF
$35.00
0.78
0.76
$30.00
Dollars/SF/Year
Millions SF
0.74
0.72
0.70
0.68
0.66
0.64
$20.00
$15.00
$10.00
0.62
$5.00
0.60
$0.00
0.58
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$25.00
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
242
3,362,804
Vacancy
Vacant SF
Vacancy %
687,644
20.4%
Net
Absorption
12,095
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$35.14
2013 4q
242
3,362,804
699,739
20.8%
6,285
0
0
0
0
$34.79
2013 3q
242
3,362,804
706,024
21.0%
77,273
0
0
0
0
$34.89
2013 2q
242
3,362,804
783,297
23.3%
(3,228)
0
0
0
0
$34.93
2013 1q
242
3,362,804
780,069
23.2%
(4,300)
0
0
0
0
$26.69
2012 4q
242
3,362,804
775,769
23.1%
3,486
0
0
0
0
$9.89
2012 3q
242
3,362,804
779,255
23.2%
4,053
0
0
0
0
$10.55
2012 2q
242
3,362,804
783,308
23.3%
(4,334)
0
0
0
0
$10.73
2012 1q
242
3,362,804
778,974
23.2%
42,431
0
0
0
0
$10.80
2011 4q
242
3,362,804
821,405
24.4%
14,345
0
0
0
0
$23.03
2011 3q
242
3,362,804
835,750
24.9%
9,374
0
0
0
0
$23.22
2011 2q
242
3,362,804
845,124
25.1%
(4,476)
0
0
0
0
$22.79
2011 1q
242
3,362,804
840,648
25.0%
(31,293)
0
0
0
0
$23.09
2010 4q
242
3,362,804
809,355
24.1%
(17,499)
0
0
0
0
$22.70
2010 3q
242
3,362,804
791,856
23.5%
14,601
0
0
0
0
$22.24
2010 2q
242
3,362,804
806,457
24.0%
(78,438)
0
0
0
0
$21.65
39
R - B
C O R R I D O R
M A R K E T
Delivered SF
0.600
Absorption SF
Vacancy
25.0%
0.400
20.0%
15.0%
0.000
(0.200)
10.0%
Percent Vacant
Millions SF
0.200
(0.400)
5.0%
(0.600)
(0.800)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
6.00
$42.00
Sublet SF
$41.80
Dollars/SF/Year
Millions SF
5.00
4.00
3.00
2.00
$41.40
$41.20
$41.00
1.00
$40.80
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$41.60
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
179
25,268,092
Vacancy
Vacant SF
Vacancy %
4,878,873
19.3%
Net
Absorption
(173,963)
Delivered Inventory
# Bldgs
Total RBA
2
302,800
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$41.20
2013 4q
177
24,965,292
4,402,110
17.6%
(127,795)
1
535,381
2
302,800
$41.73
2013 3q
176
24,429,911
3,738,934
15.3%
(91,196)
0
0
3
838,181
$41.86
2013 2q
176
24,429,911
3,647,738
14.9%
127,524
0
0
3
838,181
$41.93
2013 1q
176
24,429,911
3,775,262
15.5%
(365,878)
0
0
3
838,181
$41.37
2012 4q
176
24,429,911
3,409,384
14.0%
(295,672)
1
138,535
3
838,181
$41.58
2012 3q
175
24,291,376
2,975,177
12.2%
(224,497)
0
0
4
976,716
$42.76
2012 2q
176
24,351,376
2,810,680
11.5%
193,975
0
0
2
673,916
$41.80
2012 1q
176
24,351,376
3,004,655
12.3%
163,992
1
301,895
2
673,916
$41.32
2011 4q
175
24,049,481
2,866,752
11.9%
(16,789)
1
352,740
3
975,811
$41.11
2011 3q
174
23,696,741
2,497,223
10.5%
(221,300)
0
0
4
1,328,551
$40.67
2011 2q
175
23,738,311
2,317,493
9.8%
155,899
0
0
4
1,328,551
$40.59
2011 1q
175
23,738,311
2,473,392
10.4%
(567,368)
1
144,000
3
793,170
$40.53
2010 4q
174
23,594,311
1,762,024
7.5%
112,637
0
0
3
798,635
$40.52
2010 3q
174
23,594,311
1,874,661
7.9%
108,610
2
217,536
3
798,635
$40.61
2010 2q
172
23,376,775
1,765,735
7.6%
5,863
0
0
5
1,016,171
$40.02
40
S
P R I N C E
G E O R G E S
C O U N T Y
M A R K E T
Delivered SF
0.120
Absorption SF
Vacancy
18.0%
0.100
16.0%
0.080
14.0%
Millions SF
12.0%
0.040
10.0%
0.020
8.0%
0.000
6.0%
(0.020)
(0.040)
4.0%
(0.060)
2.0%
(0.080)
Percent Vacant
0.060
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.80
$23.50
Sublet SF
0.70
$23.00
Dollars/SF/Year
Millions SF
0.60
0.50
0.40
0.30
0.20
$22.50
$22.00
$21.50
0.10
$21.00
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
323
4,505,227
Vacancy
Vacant SF
Vacancy %
552,642
12.3%
Net
Absorption
71,399
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$23.24
2013 4q
323
4,505,227
624,041
13.9%
77,198
0
0
0
0
$23.16
2013 3q
323
4,505,227
701,239
15.6%
(1,434)
0
0
0
0
$22.29
2013 2q
323
4,505,227
699,805
15.5%
(50,339)
0
0
0
0
$22.20
2013 1q
323
4,505,227
649,466
14.4%
7,172
0
0
0
0
$21.87
2012 4q
323
4,505,227
656,638
14.6%
101,401
0
0
0
0
$21.64
2012 3q
323
4,505,227
758,039
16.8%
(22,295)
0
0
0
0
$22.09
2012 2q
323
4,505,227
735,744
16.3%
(67,113)
0
0
0
0
$22.05
2012 1q
323
4,505,227
668,631
14.8%
12,340
0
0
0
0
$22.54
2011 4q
323
4,505,227
680,971
15.1%
2,456
0
0
0
0
$22.58
2011 3q
323
4,505,227
683,427
15.2%
(10,959)
0
0
0
0
$22.45
2011 2q
323
4,505,227
672,468
14.9%
(42,089)
0
0
0
0
$22.56
2011 1q
323
4,505,227
630,379
14.0%
36,302
0
0
0
0
$21.93
2010 4q
323
4,505,227
666,681
14.8%
39,422
1
21,000
0
0
$22.11
2010 3q
322
4,484,227
685,103
15.3%
12,843
0
0
1
21,000
$21.97
2010 2q
322
4,484,227
697,946
15.6%
(4,200)
0
0
1
21,000
$21.78
41
S E
F A I R F A X
C O U N T Y
M A R K E T
Delivered SF
0.400
Absorption SF
Vacancy
25.0%
0.350
0.300
20.0%
Millions SF
0.200
15.0%
0.150
0.100
10.0%
Percent Vacant
0.250
0.050
0.000
5.0%
(0.050)
(0.100)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
1.80
$28.00
Sublet SF
1.60
$27.50
Dollars/SF/Year
Millions SF
1.40
1.20
1.00
0.80
0.60
0.40
$27.00
$26.50
$26.00
$25.50
0.20
$25.00
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
283
8,573,679
Vacancy
Vacant SF
Vacancy %
1,675,884
19.5%
Net
Absorption
56,502
Delivered Inventory
# Bldgs
Total RBA
1
40,000
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$27.38
2013 4q
282
8,533,679
1,692,386
19.8%
(38,576)
1
35,002
1
40,000
$27.08
2013 3q
281
8,498,677
1,618,808
19.0%
24,286
2
242,472
2
75,002
$27.44
2013 2q
280
8,383,475
1,527,892
18.2%
(59,222)
1
110,047
4
317,474
$26.19
2013 1q
279
8,273,428
1,358,623
16.4%
51,020
1
35,704
5
427,521
$26.12
2012 4q
278
8,237,724
1,373,939
16.7%
(46,720)
1
6,500
5
423,225
$26.38
2012 3q
277
8,231,224
1,320,719
16.0%
22,535
1
240,565
5
394,723
$26.04
2012 2q
276
7,990,659
1,102,689
13.8%
125,333
0
0
4
392,816
$26.71
2012 1q
276
7,990,659
1,228,022
15.4%
(7,788)
0
0
3
357,112
$26.83
2011 4q
276
7,990,659
1,220,234
15.3%
(48,041)
1
331,174
2
350,612
$24.96
2011 3q
275
7,659,485
841,019
11.0%
54,386
0
0
3
681,786
$26.12
2011 2q
275
7,659,485
895,405
11.7%
527
0
0
2
571,739
$26.21
2011 1q
275
7,659,485
895,932
11.7%
(52,285)
1
95,000
1
331,174
$25.99
2010 4q
274
7,564,485
748,647
9.9%
86,767
0
0
2
426,174
$26.21
2010 3q
274
7,564,485
835,414
11.0%
(90,554)
0
0
2
426,174
$26.60
2010 2q
274
7,564,485
744,860
9.8%
(726)
0
0
2
426,174
$26.69
42
S E
M O N T G O M E R Y
C O U N T Y
M A R K E T
Delivered SF
0.080
Absorption SF
Vacancy
13.5%
0.060
13.0%
0.040
Millions SF
12.5%
0.000
(0.020)
12.0%
(0.040)
11.5%
(0.060)
(0.080)
Percent Vacant
0.020
11.0%
(0.100)
(0.120)
10.5%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
1.75
$26.05
Sublet SF
$26.00
1.70
$25.95
Dollars/SF/Year
Millions SF
1.65
1.60
1.55
1.50
$25.90
$25.85
$25.80
1.45
$25.75
1.40
$25.70
$25.65
1.35
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
374
12,905,844
Vacancy
Vacant SF
Vacancy %
1,658,258
12.8%
Net
Absorption
(38,294)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
1
25,239
Quoted
Rates
$26.03
2013 4q
375
12,992,664
1,706,784
13.1%
(9,321)
0
0
1
25,239
$25.80
2013 3q
375
12,992,664
1,697,463
13.1%
(8,728)
0
0
0
0
$25.90
2013 2q
375
12,992,664
1,688,735
13.0%
(101,831)
0
0
0
0
$25.89
2013 1q
375
12,992,664
1,586,904
12.2%
(49,940)
0
0
0
0
$25.80
2012 4q
375
12,992,664
1,536,964
11.8%
19,800
0
0
0
0
$25.85
2012 3q
375
12,992,664
1,556,764
12.0%
(38,404)
0
0
0
0
$25.86
2012 2q
375
12,992,664
1,518,360
11.7%
9,950
0
0
0
0
$25.92
2012 1q
375
12,992,664
1,528,310
11.8%
(10,038)
0
0
0
0
$26.28
2011 4q
375
12,992,664
1,518,272
11.7%
68,678
0
0
0
0
$26.34
2011 3q
375
12,992,664
1,586,950
12.2%
55,901
0
0
0
0
$26.17
2011 2q
375
12,992,664
1,642,851
12.6%
(101,481)
0
0
0
0
$26.08
2011 1q
375
12,992,664
1,541,370
11.9%
(23,414)
0
0
0
0
$25.75
2010 4q
375
12,992,664
1,517,956
11.7%
100,334
0
0
0
0
$26.05
2010 3q
375
12,992,664
1,618,290
12.5%
(100,984)
0
0
0
0
$26.27
2010 2q
375
12,992,664
1,517,306
11.7%
(273,156)
0
0
0
0
$26.25
43
W I N C H E S T E R
C I T Y
M A R K E T
Delivered SF
Absorption SF
Vacancy
20.0%
0.040
18.0%
0.030
16.0%
0.020
14.0%
0.010
12.0%
0.000
10.0%
(0.010)
8.0%
(0.020)
6.0%
(0.030)
4.0%
(0.040)
2.0%
(0.050)
Percent Vacant
Millions SF
0.050
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.20
$17.60
Sublet SF
$17.40
0.16
$17.20
0.14
$17.00
Dollars/SF/Year
Millions SF
0.18
0.12
0.10
0.08
0.06
$16.60
$16.40
$16.20
0.04
$16.00
0.02
$15.80
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$16.80
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
145
1,386,909
Vacancy
Vacant SF
Vacancy %
127,004
9.2%
Net
Absorption
29,792
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
1
57,695
Quoted
Rates
$16.43
2013 4q
146
1,415,406
185,293
13.1%
(40,207)
0
0
1
57,695
$17.45
2013 3q
146
1,415,406
145,086
10.3%
(9,163)
0
0
1
57,695
$17.45
2013 2q
146
1,415,406
135,923
9.6%
41,164
0
0
1
57,695
$17.20
2013 1q
146
1,415,406
177,087
12.5%
24,554
0
0
1
57,695
$16.90
2012 4q
146
1,415,406
201,641
14.2%
5,496
0
0
0
0
$17.12
2012 3q
146
1,415,406
207,137
14.6%
3,717
0
0
0
0
$17.27
2012 2q
146
1,415,406
210,854
14.9%
36,819
1
39,470
0
0
$17.27
2012 1q
145
1,375,936
208,203
15.1%
6,723
0
0
1
39,470
$17.14
2011 4q
145
1,375,936
214,926
15.6%
3,877
0
0
1
39,470
$17.23
2011 3q
145
1,375,936
218,803
15.9%
37,622
2
22,200
1
39,470
$17.58
2011 2q
143
1,353,736
234,225
17.3%
2,671
0
0
3
61,670
$17.84
2011 1q
143
1,353,736
236,896
17.5%
16,330
0
0
3
61,670
$17.82
2010 4q
143
1,353,736
253,226
18.7%
(10,958)
0
0
3
61,670
$18.81
2010 3q
143
1,353,736
242,268
17.9%
(11,042)
0
0
2
46,670
$19.39
2010 2q
143
1,353,736
231,226
17.1%
4,805
0
0
2
46,670
$19.57
44
W O O D B R I D G E / I - 9 5
C O R R I D O R
M A R K E T
Delivered SF
0.120
Absorption SF
Vacancy
18.0%
16.0%
0.100
14.0%
12.0%
0.060
10.0%
0.040
8.0%
0.020
6.0%
0.000
Percent Vacant
Millions SF
0.080
4.0%
(0.020)
2.0%
(0.040)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.41
$23.00
Sublet SF
0.40
$22.80
0.39
$22.60
Dollars/SF/Year
Millions SF
0.38
0.37
0.36
0.35
0.34
0.33
$22.20
$22.00
$21.80
$21.60
0.32
$21.40
0.31
$21.20
0.30
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$22.40
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
276
3,329,254
Vacancy
Vacant SF
Vacancy %
364,981
11.0%
Net
Absorption
(8,731)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$21.91
2013 4q
276
3,329,254
356,250
10.7%
34,856
0
0
0
0
$21.76
2013 3q
276
3,329,254
391,106
11.7%
4,715
0
0
0
0
$22.56
2013 2q
276
3,329,254
395,821
11.9%
(13,234)
0
0
0
0
$22.87
2013 1q
276
3,329,254
382,587
11.5%
9,313
0
0
0
0
$21.94
2012 4q
276
3,329,254
391,900
11.8%
33,240
0
0
0
0
$21.93
2012 3q
276
3,329,254
425,140
12.8%
29,947
0
0
0
0
$21.92
2012 2q
276
3,329,254
455,087
13.7%
(16,165)
0
0
0
0
$22.36
2012 1q
276
3,329,254
438,922
13.2%
99,884
1
43,500
0
0
$21.14
2011 4q
275
3,285,754
495,306
15.1%
(5,332)
0
0
1
43,500
$20.72
2011 3q
275
3,285,754
489,974
14.9%
42,763
1
23,537
1
43,500
$21.37
2011 2q
274
3,262,217
509,200
15.6%
34,120
2
33,061
1
23,537
$21.66
2011 1q
272
3,229,156
510,259
15.8%
36,927
1
26,495
3
56,598
$22.15
2010 4q
271
3,202,661
520,691
16.3%
0
0
4
83,093
$22.53
2010 3q
271
3,202,661
520,514
16.3%
26,948
0
0
3
59,556
$23.13
2010 2q
271
3,202,661
547,462
17.1%
56,164
1
32,400
1
26,495
$22.98
(177)
45
The CoStar
Industrial Report
F I R S T
Q U A R T E R
2 0 1 4
Washington, D.C. Industrial Market
Table of Contents
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A
Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B
Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C
Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Inventory & Development Analysis
Select Top Deliveries
Select Top Under Construction Properties
Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figures at a Glance by Building Type & Market
Figures at a Glance by Building Type & Submarket
Historical Figures at a Glance
Leasing Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Select Top Lease Transactions
Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Sales Activity Analysis
Select Top Sales Transactions
Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Arlington/Alexandria Market
Bethesda/Silver Spring Market
College Park/Cheverly Market
District of Columbia Market
Dulles Corridor Market
E Montgomery County Market
Fairfax Market
Frederick County Market
I-270 Corridor Market
Lanham/Landover/Bowie Market
Manassas/I-66 Market
North Loudoun Market
North PG County Market
PG Beltway South Market
SE PG County Market
Springfield/Newington Market
Winchester City Market
Woodbridge Market
THE COSTAR INDUSTRIAL REPORT
A
Methodology
The CoStar Industrial Report calculates Industrial statistics using CoStar Group's base of existing,
under construction and under renovation Industrial buildings in each given metropolitan area. All
Industrial building types are included, including warehouse, flex / research & development, distribution,
manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant
buildings, including owner-occupied buildings. CoStar Group's national database includes approximately
80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar
Industrial Report are calculated using the quoted rental rate for each property. The quoted rental rate is
exclusive of the expense pass through associated with the rent.
For information on subscribing to CoStar’s other products and services, please contact us at
1-877-7COSTAR, or visit our web site at www.costar.com
© Copyright 2012 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the
information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or
completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or
warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
CoStar Group, Inc.
1331 L ST NW • Washington, DC 20005• (800) 204-5960 • www.costar.com • NASDAQ: CSGP
B
Terms & Definitions
Availability Rate: The ratio of available space to total rentable
space, calculated by dividing the total available square feet by the
total rentable square feet.
Deliveries: Buildings that complete construction during a specified
period of time. In order for space to be considered delivered, a
certificate of occupancy must have been issued for the property.
Available Space: The total amount of space that is currently
being marketed as available for lease in a given time period. It
includes any space that is available, regardless of whether the
space is vacant, occupied, available for sublease, or available at
a future date.
Delivery Date: The date a building completes construction and
receives a certificate of occupancy.
Build-to-Suit: A term describing a particular property, developed
specifically for a certain tenant to occupy, with structural features,
systems, or improvement work designed specifically for the needs
of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long
term lease on the space.
Direct Space: Space that is being offered for lease directly from
the landlord or owner of a building, as opposed to space being
offered in a building by another tenant (or broker of a tenant)
trying to sublet a space that has already been leased.
Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.
Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating
income and the current market value of a particular property.
The Cap Rate is calculated by dividing the annual net operating
income by the sales price (or asking sales price).
CBD: Abbreviation for Central Business District. (See also:
Central Business District)
Central Business District: The designations of Central Business
District (CBD) and Suburban refer to a particular geographic area
within a metropolitan statistical area (MSA) describing the level
of real estate development found there. The CBD is characterized
by a high density, well organized core within the largest city of a
given MSA.
Class A: A classification used to describe buildings that generally
qualify as extremely desirable investment-grade properties and
command the highest rents or sale prices compared to other
buildings in the same market. Such buildings are well located
and provide efficient tenant layouts as well as high quality, and in
some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects.
These buildings contain a modern mechanical system, and have
above-average maintenance and management as well as the best
quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought
by investors willing to pay a premium for quality.
Class B: A classification used to describe buildings that generally
qualify as a more speculative investment, and as such, command
lower rents or sale prices compared to Class A properties. Such
buildings offer utilitarian space without special attractions, and
have ordinary design, if new or fairly new; good to excellent
design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants.
They are less appealing to tenants than Class A properties, and
may be deficient in a number of respects including floor plans,
condition and facilities. They lack prestige and must depend
chiefly on a lower price to attract tenants and investors.
Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and
command lower rents or sale prices compared to other buildings
in the same market. Such buildings typically have below-average
maintenance and management, and could have mixed or low
tenant prestige, inferior elevators, and/or mechanical/electrical
systems. These buildings lack prestige and must depend chiefly
on a lower price to attract tenants and investors.
Construction Starts: Buildings that began construction during a
specific period of time. (See also: Deliveries)
Contiguous Blocks of Space: Space within a building that is, or is
able to be joined together into a single contiguous space.
Developer: The company, entity or individual that transforms raw
land to improved property by use of labor, capital and entrepreneurial efforts.
Existing Inventory: The square footage of buildings that have
received a certificate of occupancy and are able to be occupied
by tenants. It does not include space in buildings that are either
planned, under construction or under renovation.
Flex Building: A type of building designed to be versatile, which
may be used in combination with office (corporate headquarters),
research and development, quasi-retail sales, and including but
not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the
rentable area being used as office space, have ceiling heights of 16
feet or less, and have some type of drive-in door, even though the
door may be glassed in or sealed off.
Full Service Rental Rate: Rental rates that include all operating
expenses such as utilities, electricity, janitorial services, taxes and
insurance.
Gross Absorption: The total change in occupied space over a
given period of time, counting space that is occupied but not
space that is vacated by tenants. Gross absorption differs from
leasing Activity, which is the sum of all space leased over a certain
period of time. Unless otherwise noted Gross Absorption includes
Growth in Inventory: The change in size of the existing square
footage in a given area over a given period of time, generally due
to the construction of new buildings.
Industrial Building: A type of building adapted for such uses as
the assemblage, processing, and/or manufacturing of products
from raw materials or fabricated parts. Additional uses include
warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling,
or distributing product.
Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that
represents the interests of the owner/landlord is referred to as the
Landlord Rep.
Leased Space: All the space that has a financial lease obligation.
It includes all leased space, regardless of whether the space is
currently occupied by a tenant. Leased space also includes space
being offered for sublease.
Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building
or market in a given period of time. It includes direct leases,
subleases and renewals of existing leases. It also includes any
pre-leasing activity in planned, under construction, or under
renovation buildings.
Market: Geographic boundaries that serve to delineate core areas
that are competitive with each other and constitute a generally
accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic
designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further
subdivided into Submarkets. (See also: Submarkets)
C
Multi-Tenant: Buildings that house more than one tenant at a
given time. Usually, multi-tenant buildings were designed and
built to accommodate many different floor plans and designs for
different tenant needs. (See also: Tenancy).
Net Absorption: The net change in occupied space over a given
period of time. Unless otherwise noted Net Absorption includes
Net Rental Rate: A rental rate that excludes certain expenses that
a tenant could incur in occupying office space. Such expenses
are expected to be paid directly by the tenant and may include
janitorial costs, electricity, utilities, taxes, insurance and other
related costs.
New Space: Sometimes called first generation space, refers to
space that has never been occupied and/or leased by a tenant.
Occupied Space: Space that is physically occupied by a tenant.
It does not include leased space that is not currently occupied
by a tenant.
Office Building: A type of commercial building used exclusively
or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes
have other associated uses within part of the building, i.e., retail
sales, financial, or restaurant, usually on the ground floor.
Owner: The company, entity, or individual that holds title on a
given building or property.
Planned/Proposed: The status of a building that has been
announced for future development but not yet started
construction.
Preleased Space: The amount of space in a building that has been
leased prior to its construction completion date, or certificate of
occupancy date.
Price/SF: Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable Building Area
(RBA).
Property Manager: The company and/or person responsible for
the day-to-day operations of a building, such as cleaning, trash
removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and
electrical systems, are functioning properly.
Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner.
Quoted rental rates may differ from the actual rates paid by
tenants following the negotiation of all terms and conditions in
a specific lease.
RBA: Abbreviation for Rentable Building Area. (See also:
Rentable Building Area)
Region: Core areas containing a large population nucleus, that
together with adjacent communities have a high degree of economic and social integration. Regions are further divided into
market areas, called Markets. (See also: Markets)
Relet Space: Sometimes called second generation or direct space,
refers to existing space that has previously been occupied by
another tenant.
Rentable Building Area: (RBA) The total square footage of a
building that can be occupied by, or assigned to a tenant for the
purpose of determining a tenant’s rental obligation. Generally
RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.
Rental Rates: The annual costs of occupancy for a particular
space quoted on a per square foot basis.
Sales Price: The total dollar amount paid for a particular property
at a particular point in time.
Sales Volume: The sum of sales prices for a given group of buildings in a given time period.
D
Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.
SF: Abbreviation for Square Feet.
Single-Tenant: Buildings that are occupied, or intended to be
occupied by a single tenant. (See also: Build-to-suit and Tenancy)
Sublease Space: Space that has been leased by a tenant and is
being offered for lease back to the market by the tenant with
the lease obligation. Sublease space is sometimes referred to as
sublet space.
Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each
other and constitute a generally accepted primary competitive
set, or peer group. Submarkets are building type specific (office,
industrial, retail, etc.), with distinct boundaries dependent on
different factors relevant to each building type. Submarkets are
non-overlapping, contiguous geographic designations having a
cumulative sum that matches the boundaries of the Market they
are located within (See also: Market).
Suburban: The Suburban and Central Business District (CBD)
designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all
office inventory not located in the CBD. (See also: CBD)
Tenancy: A term used to indicate whether or not a building is
occupied by multiple tenants (See also: Multi-tenant) or a single
tenant. (See also: Single-tenant)
Tenant Rep: Tenant Rep stands for Tenant Representative. In a
typical lease transaction between an owner/landlord and tenant,
the broker that represents the interests of the tenant is referred to
as a Tenant Rep.
Time On Market: A measure of how long a currently available
space has been marketed for lease, regardless of whether it is
vacant or occupied.
Under Construction: The status of a building that is in the process
of being developed, assembled, built or constructed. A building is
considered to be under construction after it has begun construction and until it receives a certificate of occupancy.
Vacancy Rate: A measurement expressed as a percentage of the
total amount of physically vacant space divided by the total
amount of existing inventory. Under construction space generally
is not included in vacancy calculations.
Vacant Space: Space that is not currently occupied by a tenant,
regardless of any lease obligation that may be on the space.
Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for
by a tenant but not occupied by that tenant, would be considered
vacant space. Likewise, space that has been leased but not yet
occupied because of finish work being done, would also be considered vacant space.
Weighted Average Rental Rate: Rental rates that are calculated by
factoring in, or weighting, the square footage associated with each
particular rental rate. This has the effect of causing rental rates
on larger spaces to affect the average more than that of smaller
spaces. The weighted average rental rate is calculated by taking
the ratio of the square footage associated with the rental rate on
each individual available space to the square footage associated
with rental rates on all available spaces, multiplying the rental rate
by that ratio, and then adding together all the resulting numbers.
Unless specifically specified otherwise, rental rate averages include
both Direct and Sublet available spaces.
Year Built: The year in which a building completed construction
and was issued a certificate of occupancy.
YTD: Abbreviation for Year-to-Date. Describes statistics that are
cumulative from the beginning of a calendar year through whatever time period is being studied.
OVERVIEW
Washington’s Vacancy Decreases to 10.1%
Net Absorption Positive 814,061 SF in the Quarter
T
he Washington Industrial market ended the first quarter
2014 with a vacancy rate of 10.1%. The vacancy rate
was down over the previous quarter, with net absorption
totaling positive 814,061 square feet in the first quarter. Vacant
sublease space decreased in the quarter, ending the quarter at
854,955 square feet. Rental rates ended the first quarter at $9.67,
a decrease over the previous quarter. A total of four buildings
delivered to the market in the quarter totaling 326,740 square
feet, with 1,577,790 square feet still under construction at the
end of the quarter.
Absorption
Net absorption for the overall Washington Industrial market
was positive 814,061 square feet in the first quarter 2014. That
2013, positive 686,316 square feet in the third quarter 2013, and
positive 158,344 square feet in the second quarter 2013.
Tenants moving out of large blocks of space in 2014 include:
Pepsi Bottling Group closed its 101,400 square foot facility at
Hampton Central 3, CURRENT Group, LLC moved out of
(19,981) square feet at Cloverleaf Center after being acquired by
Ormazabal, reducing space to only 6,000 square feet at 20459
Seneca Meadows.
Tenants moving into large blocks of space in 2014 include:
Hilldrup moving into 75,551 square feet at 8800 Walker Mill Rd,
and ASRC Federal Holding Co. moving into 50,000 square feet
at 7000 Muirkirk Rd.
The Flex building market recorded net absorption of positive 353,424 square feet in the first quarter 2014, compared to
Vacancy Rates by Building Type
Flex
498,155 in the third quarter 2013, and negative (20,657) in the
The Warehouse building market recorded net absorption of
positive 460,637 square feet in the first quarter 2014 compared to
Vacancy
The Industrial vacancy rate in the Washington market area
decreased to 10.1% at the end of the first quarter 2014. The
vacancy rate was 10.3% at the end of the fourth quarter 2013,
Flex projects reported a vacancy rate of 13.0% at the end
of the first quarter 2014, 13.3% at the end of the fourth quarter
Warehouse projects reported a vacancy rate of 8.8% at the
end of the first quarter 2014, 9.0% at the end of fourth quarter
2013, 9.0% at the end of the third quarter 2013, and 9.1% at the
end of the second quarter 2013.
Largest Lease Signings
The largest lease signings occurring in 2014 included: the
150,000-square-foot lease signed by National Institutes of Health
at Gaither Distribution Center in the I-270 Corridor market;
the 63,346-square-foot deal signed by Laboratory Corporation
of America« Holdings at Renaissance Park at Dulles 5 in the
Dulles Corridor market; and the 61,186-square-foot lease signed
1993-2014
Warehouse
Total Market
18%
16%
14%
Vacancy Rate
12%
10%
8%
6%
4%
2%
0%
1993 1993 1994 1995 1996 1996 1997 1998 1999 1999 2000 2001 2002 2002 2003 2004 2005 2005 2006 2007 2008 2008 2009 2010 2011 2011 2012 2013 2014
1q
4q
3q
2q
1q
4q
3q
2q
1q
4q
3q
2q
1q
4q
3q
2q
1q
4q
3q
1q
2q
4q
3q
2q
1q
4q
3q
2q
1q
Past 7 Quarters
Past 7 Quarters
1
OVERVIEW
by NIH Chemical Genomics Center at 9800 Medical Center Dr
- Bldg B in the I-270 Corridor market.
Sublease Vacancy
The amount of vacant sublease space in the Washington
market decreased to 854,955 square feet by the end of the first
quarter 2014, from 899,023 square feet at the end of the fourth
quarter 2013. There was 937,042 square feet vacant at the end
of the third quarter 2013 and 813,833 square feet at the end of
the second quarter 2013.
Washington’s Flex projects reported vacant sublease space of
175,736 square feet at the end of first quarter 2014, down from
the 223,101 square feet reported at the end of the fourth quarter
2013. There were 248,540 square feet of sublease space vacant
at the end of the third quarter 2013, and 256,220 square feet at
Warehouse projects reported increased vacant sublease space
993-2014 from the fourth quarter 2013 to the first quarter 2014. Sublease
vacancy went from 675,922 square feet to 679,219 square feet
Warehouse
Total Market
during that time. There was 688,502 square feet at the end of
the third quarter 2013, and 557,613 square feet at the end of the
Past 7 Quarters
Washington, D.C.
United States
12.0%
10.0%
Vacancy Rate
2002
4q
Rental Rates
The average quoted asking rental rate for available Industrial
space was $9.67 per square foot per year at the end of the first
quarter 2014 in the Washington market area. This represented a
0.2% decrease in quoted rental rates from the end of the fourth
quarter 2013, when rents were reported at $9.69 per square
foot.
The average quoted rate within the Flex sector was $12.70
per square foot at the end of the first quarter 2014, while
Warehouse rates stood at $8.23. At the end of the fourth quarter
2003 2004 2005 2005 2006 2007 2008 2008 2009 2010 2011 2011 2012 2013 2014
3q 2013,
2q
1qFlex
4q rates
3q were
1q
2q
4q
3q
1q foot,
4q
3q
1q
$12.88
per 2q
square
and2qWarehouse
rates were $8.22.
8.0%
6.0%
4.0%
Deliveries and Construction
During the first quarter 2014, four buildings totaling
326,740 square feet were completed in the Washington market
area. This compares to four buildings totaling 816,944 square
feet that were completed in the fourth quarter 2013, three buildings totaling 260,744 square feet completed in the third quarter
2013, and 218,867 square feet in eight buildings completed in the
There were 1,577,790 square feet of Industrial space under
construction at the end of the first quarter 2014.
Some of the notable 2014 deliveries include: Patriot Business
Center - Bldg. B, a 125,550-square-foot facility that delivered
in first quarter 2014 and is now 100% occupied, and 17001
Interstate Dr, a 123,068-square-foot building that delivered in
first quarter 2014 and is now 0% occupied.
The largest projects underway at the end of first quarter
2014 were 21625 Gresham Ct, a 254,911-square-foot building
with 100% of its space pre-leased, and Digital Realty Trust Bldg
K, a 252,000-square-foot facility that is 52% pre-leased.
Inventory
Total Industrial inventory in the Washington market area
amounted to 212,641,399 square feet in 6,064 buildings as of
the end of the first quarter 2014. The Flex sector consisted of
65,768,719 square feet in 1,554 projects. The Warehouse sector
consisted of 146,872,680 square feet in 4,510 buildings. Within
the Industrial market there were 411 owner-occupied buildings
accounting for 23,237,188 square feet of Industrial space.
Sales Activity
Tallying industrial building sales of 15,000 square feet or
larger, Washington industrial sales figures rose during the fourth
quarter 2013 in terms of dollar volume compared to the third
quarter of 2013.
In the fourth quarter, 36 industrial transactions closed
with a total volume of $224,868,615. The 36 buildings totaled
2,259,179 square feet and the average price per square foot
equated to $99.54 per square foot. That compares to 21 transactions totaling $97,280,238 in the third quarter. The total square
footage was 1,666,493 for an average price per square foot of
$58.37.
Total year-to-date industrial building sales activity in 2013
is down compared to the previous year. In the twelve months of
2013, the market saw 92 industrial sales transactions with a total
volume of $482,022,892. The price per square foot has averaged
$80.14 this year. In the twelve months of 2012, the market posted
96 transactions with a total volume of $498,845,012. The price
per square foot averaged $73.77.
2.0%
0.0%
2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q 2014 1q
2
4%
2%
0%
1993 1993 1994 1995 1996 1996 1997 1998 1999 1999 2000 2001 2002 2002
1q
4q
3q
2q
1q
4q
3q
2q
1q
4q
3q
2q
1q
4q
Cap rates have been lower in 2013, averaging 6.86%,
compared to the twelve months of last year when they averaged
8.12%.
One of the largest transactions that has occurred within the
last four quarters in the Washington market is the sale of Wolf
Commerce Center - Bldg A in Landover. This 539,691-squarefoot industrial building sold for $32,500,000, or $60.22 per
square foot. The property sold on 9/11/2013, at a 6.75% cap
rate.
Reports compiled by: D.J. O’Brien, CoStar Research Manager.
Past 7 Quarters
Net Absorption
Deliveries
1.0
0.9
0.9
0.9
0.8
0.8
0.7
0.8
0.7
0.7
Millions SF
OVERVIEW
0.6
0.6
0.5
0.4
0.3
0.3
0.3
0.2
0.2
0.2
0.1
0.3
0.0
0.0
0.0
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
3
MARKETS
CoStar Submarket Clusters & Submarkets
In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets,
Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population
nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided
into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms
of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate
a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.
Submarket Clusters
Submarkets
Arlington/Alexandria Ind
Arlington County Ind
Old Town Alexandria Ind
Crystal City Ind
Bethesda/Silver Spring Ind
Bethesda/Chevy Chase Ind
Silver Spring Ind
College Park/Cheverly Ind
Cheverly/Hyattsville Ind
Takoma Pk/College Pk Ind
District of Columbia Ind
Capitol Riverfront Ind
Dulles Corridor Ind
Herndon Ind
E Montgomery County Ind
Kensington/Wheaton Ind
Route 29 Corridor Ind
Fairfax Ind
Chantilly/Fairfax Ind
Tysons Corner/McLean Ind
Frederick County Ind
I-270 Corridor Ind
Eisenhower Ave Corr Ind
I-395 Corridor Ind
NE Ind
NW Ind
SW/SE Ind
Reston Ind
Rt 28/Dulles North Ind
Rt 28/Dulles South Ind
Falls Church/Baileys Ind
Merrifield Ind
Oakton/Vienna Ind
Gaithersburg Ind
North Rockville Ind
Germantown Ind
Rockville Ind
I-270 Corridor North Ind
N Bethesda/Potomac Ind
Lanham/Landover/Bowie Ind
Bowie Ind
Landover/Largo Ind
Lanham Ind
Manassas/I-66 Ind
Manassas Ind
Rt 29/I-66 Corridor Ind
North Loudoun Ind
Leesburg Ind
North PG County Ind
Beltsville Ind
Greenbelt Ind
Laurel Ind
PG Beltway South Ind
Branch Ave Corridor Ind
Capitol Heights Ind
NatHbr/OxnHill/FtWash Ind
SE PG County Ind
Brandywine/PG South Ind
Upper Marlboro Ind
Springfield/Newington Ind
Newington Ind
Springfield Ind
Winchester City Ind
Winchester City Ind
Woodbridge Ind
Woodbridge Ind
4
Penn Ave Corridor Ind
Historical Deliveries
9.0
Deliveries
8.4
Average Delivered SF
8.4
7.9
7.9
8.0
7.4
6.8
7.0
Millions of SF
1982 - 2014
6.2
6.0
5.0
5.4
5.0
4.8
4.2 4.3
4.1
4.0
4.0
4.0
3.5 3.4
3.4
3.4
3.0
1.9
2.0
1.2
1.0
2.8
2.4
2.0
1.9 1.9
1.8
1.8
1.2 1.1
1.2
0.6
0.3
0.0
1982
1984
1986
1988
1990
1992
1994
1996
1998
2002
2000
2004
2006
2008
2010
2012
2014
* Future deliveries based on current under construction buildings.
Construction Activity
Markets Ranked by Under Construction RBA
Under Construction Inventory
Total RBA
# Bldgs
Market
Average Bldg Size
Preleased SF
Preleased %
All Existing
U/C
Dulles Corridor Ind
5
697,416
488,750
70.1%
55,104
Manassas/I-66 Ind
4
337,934
0
0.0%
33,112
84,483
2
276,250
0
0.0%
63,321
138,125
2
263,082
0
0.0%
26,343
131,541
1
3,108
3,108
100.0%
46,068
3,108
Winchester City Ind
0
0
0
0.0%
68,478
0
0
0
0
0.0%
21,953
0
I-270 Corridor Ind
0
0
0
0.0%
30,763
0
North PG County Ind
0
0
0
0.0%
35,849
0
0
0
0
0.0%
15,035
0
All Other
0
0
0
0.0%
26,161
0
14
1,577,790
491,858
35,066
112,699
Totals
31.2%
139,483
Recent Deliveries
Future Deliveries
Leased & Un-Leased SF in Deliveries Since 2010
Preleased & Un-Leased SF in Properties Scheduled to Deliver
Leased
2.0
Un-Leased
1.8
Un-Leased
700
1.6
600
Thousands of SF
1.2
1.0
0.8
0.6
500
T
1.4
Millions of SF
Preleased
800
400
300
200
0.4
100
0.2
0.0
0
2010
2011
2012
2013
2014
2014 2q
2014 3q
2014 4q
5
Historical Construction Starts & Deliveries
Square Footage Per Quarter Starting and Completing Construction
Construction Starts
0.9
Deliveries
0.8
0.8
0.7
0.7
0.7
Millions of SF
0.7
0.6
0.6
0.6
0.6
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.2
0.2
0.3 0.3
0.2
0.3
0.2
0.2
0.1
0.1
0.0
0.0
0.0
0.0
2012 3q
2012 4q
0.0
0.0
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Recent Deliveries by Project Size
Building Size
# Bldgs
RBA
Breakdown of Year-to-Date Development Based on RBA of Project
SF Leased
% Leased
Avg Rate
Single-Tenant
Multi-Tenant
< 50,000 SF
1
13,600
0
0.0%
$12.95
0
13,600
50,000 SF - 99,999 SF
1
64,522
64,522
100.0%
$7.95
0
64,522
100,000 SF - 249,999 SF
2
248,618
125,550
50.5%
$7.00
0
248,618
250,000 SF - 499,999 SF
0
0
0
0.0%
$0.00
0
0
>= 500,000 SF
0
0
0
0.0%
$0.00
0
0
Recent Development by Tenancy
Existing Inventory Comparison
Based on RBA Developed for Single & Multi-Tenant Use
Based on Total RBA
2014 Deliveries
Currently Under Construction
By Building Type
0%
0%
27%
69%
6
31%
73%
100%
Multi
By Tenancy Type
100%
Single
Multi
Flex
Single
Warehouse
Multi
Single
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
7
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
��
��
��
��
��
��
��
��
��
��
��
��
�
��
8
FIGURES AT A GLANCE
Flex Market Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Total RBA
Vacancy
Direct SF
Total SF
65
1,392,400
157,635
157,635
13
329,074
20,712
19
653,494
68,041
32
1,223,709
341
33
Dulles Corridor Ind
Fairfax Ind
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
11.3%
27,667
0
0
$15.79
20,712
6.3%
0
0
0
$17.58
68,041
10.4%
0
0
0
$11.80
32,984
32,984
2.7%
1,026
0
0
$34.47
19,881,624
2,550,638
2,598,315
13.1%
116,637
0
0
$12.21
1,411,593
163,509
163,509
11.6%
1,405
0
0
$14.30
68
1,699,115
139,171
139,171
8.2%
3,913
0
0
$14.52
155
5,206,155
808,971
837,991
16.1%
(4,597)
0
0
$10.70
I-270 Corridor Ind
252
9,739,865
1,138,737
1,155,029
11.9%
38,242
0
0
$15.44
77
4,160,719
737,113
737,113
17.7%
15,262
0
0
$9.02
Manassas/I-66 Ind
160
5,628,971
495,228
505,219
9.0%
29,250
0
129,850
$9.82
North Loudoun Ind
9
482,039
54,324
54,324
11.3%
(2,083)
0
0
$12.00
North PG County Ind
83
3,334,143
641,104
643,104
19.3%
70,302
0
0
$9.50
59
1,239,888
131,894
131,894
10.6%
3,219
0
0
$9.82
SE PG County Ind
Winchester City Ind
Woodbridge Ind
Totals
4
85,580
17,350
17,350
20.3%
0
0
0
$19.75
136
7,258,418
831,477
891,506
12.3%
13,368
0
0
$15.77
9
783,361
5,000
5,000
0.6%
0
0
0
$7.21
39
1,258,571
357,041
367,768
29.2%
39,813
123,068
0
$14.50
13.0%
353,424
123,068
1,554
65,768,719
8,350,929
8,526,665
129,850
$12.70
Warehouse Market Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Total RBA
Vacancy
Direct SF
205
5,530,495
80
1,069,138
425
7,788,166
487
11,194,809
833,184
Dulles Corridor Ind
356
18,525,772
1,551,443
435,822
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
74,190
0
0
$10.01
449,537
8.1%
91,016
91,016
8.5%
(6,120)
0
0
$11.42
288,231
288,231
3.7%
(33,194)
0
0
$6.68
833,184
7.4%
58,070
0
0
$11.04
1,577,503
8.5%
37,007
64,522
697,416
$8.56
69
827,601
52,990
52,990
6.4%
(4,990)
0
0
$10.22
Fairfax Ind
133
3,418,021
263,815
263,815
7.7%
(1,690)
0
0
$13.33
381
12,204,867
1,248,021
1,453,106
11.9%
2,056
I-270 Corridor Ind
467
12,378,375
969,884
984,346
8.0%
(3,505)
0
0
$6.04
13,600
0
$11.56
280
18,444,863
1,524,630
1,669,466
9.1%
Manassas/I-66 Ind
356
11,456,842
453,666
554,003
4.8%
34,270
0
276,250
$6.21
378,696
125,550
208,084
$7.84
17
373,654
0
0
0.0%
134,127
0
0
$0.00
North PG County Ind
299
10,359,987
810,810
883,610
8.5%
46,539
0
0
$7.08
435
11,773,440
1,194,530
1,213,430
10.3%
(248,714)
0
263,082
$6.29
53
2,011,060
122,996
122,996
6.1%
5,780
0
0
$6.60
321
13,794,830
1,660,455
1,743,479
12.6%
46,997
0
3,108
$9.05
44
2,845,966
449,230
449,230
15.8%
3,600
0
0
$9.22
102
2,874,794
258,109
258,109
9.0%
(62,482)
0
0
$7.18
8.8%
460,637
North Loudoun Ind
SE PG County Ind
Winchester City Ind
Woodbridge Ind
Totals
4,510
146,872,680
12,208,832
12,888,051
203,672
1,447,940
$8.23
9
FIGURES AT A GLANCE
Total Industrial Market Statistics
Existing Inventory
Market
# Blds
Total RBA
First Quarter 2014
Vacancy
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Rates
0
0
$11.58
$11.60
270
6,922,895
593,457
607,172
8.8%
93
1,398,212
111,728
111,728
8.0%
(6,120)
0
0
444
8,441,660
356,272
356,272
4.2%
(33,194)
0
0
$7.19
519
12,418,518
866,168
866,168
7.0%
59,096
0
0
$11.53
Dulles Corridor Ind
697
38,407,396
4,102,081
4,175,818
10.9%
153,644
102
2,239,194
216,499
216,499
9.7%
Fairfax Ind
201
5,117,136
402,986
402,986
536
17,411,022
2,056,992
2,291,097
I-270 Corridor Ind
719
22,118,240
2,108,621
2,139,375
9.7%
34,737
357
22,605,582
2,261,743
2,406,579
10.6%
49,532
Manassas/I-66 Ind
516
17,085,813
948,894
1,059,222
6.2%
North Loudoun Ind
26
855,693
54,324
54,324
6.3%
North PG County Ind
382
13,694,130
1,451,914
1,526,714
494
13,013,328
1,326,424
1,345,324
SE PG County Ind
Winchester City Ind
Woodbridge Ind
Totals
101,857
Quoted
64,522
697,416
$10.49
(3,585)
0
0
$12.86
7.9%
2,223
0
0
$13.72
13.2%
(2,541)
0
0
$7.46
13,600
0
$13.29
0
276,250
$6.81
407,946
125,550
337,934
$8.34
132,044
0
0
$12.00
11.1%
116,841
0
0
$8.03
10.3%
(245,495)
0
263,082
$6.51
57
2,096,640
140,346
140,346
6.7%
5,780
0
0
$6.94
457
21,053,248
2,491,932
2,634,985
12.5%
60,365
0
3,108
$11.43
53
3,629,327
454,230
454,230
12.5%
3,600
0
0
$9.14
141
4,133,365
615,150
625,877
15.1%
(22,669)
123,068
0
$9.58
10.1%
814,061
326,740
6,064
212,641,399
20,559,761
21,414,716
1,577,790
$9.67
10
FIGURES AT A GLANCE
Flex Submarket Statistics
First Quarter 2014
Existing Inventory
Market
# Blds
Vacancy
Total RBA
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
5
178,987
57,976
57,976
32.4%
(3,076)
0
0
$20.33
52
2,179,679
442,530
444,530
20.4%
47,757
0
0
$9.51
3
47,232
8,112
8,112
17.2%
0
0
0
$0.00
Bowie Ind
24
1,256,805
267,493
267,493
21.3%
26,970
0
0
$7.72
19
426,551
33,855
33,855
7.9%
(2,053)
0
0
$12.57
Beltsville Ind
2
47,680
16,200
16,200
34.0%
0
0
0
$21.00
19
414,194
60,431
60,431
14.6%
3,000
0
0
$7.91
1
6,086
0
0
0.0%
0
0
0
$0.00
12
257,510
17,708
17,708
6.9%
0
0
0
$10.03
9
404,948
35,029
35,029
8.7%
0
0
0
$12.47
Crystal City Ind
0
0
0
0
0.0%
0
0
0
$0.00
17
220,616
10,790
10,790
4.9%
(1,063)
0
0
$19.08
Capitol Heights Ind
13
206,318
15,558
15,558
7.5%
4,465
0
0
$14.49
155
5,206,155
808,971
837,991
16.1%
(4,597)
0
0
$10.70
Gaithersburg Ind
93
3,334,502
410,185
410,185
12.3%
41,176
0
0
$13.82
Germantown Ind
20
991,283
98,092
102,882
10.4%
(28,369)
0
0
$11.67
Greenbelt Ind
2
193,022
72,190
72,190
37.4%
0
0
0
$9.84
Herndon Ind
26
974,586
110,819
110,819
11.4%
1,474
0
0
$16.24
24
908,609
85,395
85,395
9.4%
0
0
0
$11.38
I-395 Corridor Ind
28
798,211
82,169
82,169
10.3%
31,806
0
0
$13.10
9
134,694
8,034
8,034
6.0%
0
0
0
$15.27
Landover/Largo Ind
20
1,108,102
200,912
200,912
18.1%
5,524
0
0
$10.66
Lanham Ind
33
1,795,812
268,708
268,708
15.0%
(17,232)
0
0
$8.95
Laurel Ind
29
961,442
126,384
126,384
13.1%
22,545
0
0
$8.85
Leesburg Ind
9
482,039
54,324
54,324
11.3%
(2,083)
0
0
$12.00
Manassas Ind
70
2,107,103
132,040
132,040
6.3%
15,992
0
0
$8.90
Merrifield Ind
28
784,647
74,372
74,372
9.5%
(2,352)
0
0
$14.79
14
295,270
47,607
47,607
16.1%
0
0
0
$18.20
5
54,563
0
0
0.0%
0
0
0
$0.00
NE Ind
19
578,761
28,884
28,884
5.0%
1,026
0
0
$39.85
Newington Ind
84
4,688,233
580,888
632,784
13.5%
6,438
0
0
$16.19
North Rockville Ind
61
3,039,628
284,527
293,529
9.7%
25,499
0
0
$20.06
NW Ind
9
215,308
4,100
4,100
1.9%
0
0
0
$14.63
Oakton/Vienna Ind
3
55,765
3,133
3,133
5.6%
0
0
0
$19.34
15
194,586
6,700
6,700
3.4%
0
0
0
$8.05
16
344,580
37,608
37,608
10.9%
2,272
0
0
$11.65
Reston Ind
16
921,637
183,271
200,601
21.8%
(9,770)
0
0
$16.23
Rockville Ind
40
1,170,573
212,931
215,431
18.4%
(64)
0
0
$19.82
24
1,276,899
155,475
155,475
12.2%
1,405
0
0
$14.15
175
11,285,449
1,326,990
1,348,583
11.9%
77,533
0
0
$11.03
124
6,699,952
929,558
938,312
14.0%
47,400
0
0
$11.96
90
3,521,868
363,188
373,179
10.6%
13,258
0
129,850
$10.09
Silver Spring Ind
10
281,842
12,600
12,600
4.5%
0
0
0
$17.58
Springfield Ind
52
2,570,185
250,589
258,722
10.1%
6,930
0
0
$14.46
3
423,554
0
0
0.0%
0
0
0
$0.00
10
248,546
33,012
33,012
13.3%
0
0
0
$11.07
SW/SE Ind
12
394,875
28,400
28,400
7.2%
1,800
0
0
$15.39
Upper Marlboro Ind
2
37,900
1,150
1,150
3.0%
0
0
0
$13.04
Winchester City Ind
9
783,361
5,000
5,000
0.6%
0
0
0
$7.21
39
1,258,571
357,041
367,768
29.2%
39,813
123,068
0
$14.50
13.0%
353,424
123,068
Woodbridge Ind
Totals
1,554
65,768,719
8,350,929
8,526,665
129,850
$12.70
11
FIGURES AT A GLANCE
Warehouse Submarket Statistics
Existing Inventory
Market
Beltsville Ind
Bowie Ind
Capitol Heights Ind
# Blds
Total RBA
First Quarter 2014
Vacancy
Direct SF
Total SF
YTD Net
YTD
Under
Vac %
Absorption
Deliveries
Const SF
Quoted
Rates
12.3%
0
0
0
$14.00
10
93,432
11,500
11,500
240
7,313,664
399,098
399,098
5.5%
28,364
0
0
$6.77
13
77,085
14,000
14,000
18.2%
3,600
0
0
$20.00
45
3,467,749
146,807
146,807
4.2%
20,766
0
0
$6.07
132
2,934,870
512,714
512,714
17.5%
(224,738)
0
0
$4.96
17
1,100,865
0
0
0.0%
5,780
0
0
$6.75
136
4,862,821
284,703
284,703
5.9%
(12,729)
0
263,082
$6.99
16
285,930
0
0
0.0%
0
0
0
$20.00
$13.30
34
533,354
27,220
27,220
5.1%
1,000
0
0
380
6,723,051
234,865
234,865
3.5%
(22,861)
0
0
$6.47
Crystal City Ind
10
369,554
0
0
0.0%
68,000
0
0
$10.00
38
892,347
1,900
1,900
0.2%
3,900
0
0
$11.92
23
356,210
9,662
9,662
2.7%
0
0
0
$18.61
381
12,204,867
1,248,021
1,453,106
11.9%
2,056
0
0
$6.04
Gaithersburg Ind
155
4,442,201
299,863
306,825
6.9%
(15,815)
0
0
$10.76
Germantown Ind
6
234,195
0
0
0.0%
0
0
0
$11.57
Greenbelt Ind
8
332,594
144,513
144,513
43.5%
0
0
0
$11.50
Herndon Ind
10
386,730
34,646
34,646
9.0%
0
0
0
$9.08
19
200,899
14,848
14,848
7.4%
(4,900)
0
0
$8.95
I-395 Corridor Ind
93
3,056,282
341,583
355,298
11.6%
22,360
0
0
$9.66
53
357,087
37,590
37,590
10.5%
(4,990)
0
0
$10.28
Landover/Largo Ind
203
13,548,540
1,354,984
1,499,820
11.1%
16,960
0
276,250
$6.16
Lanham Ind
32
1,428,574
22,839
22,839
1.6%
(3,456)
0
0
$7.51
Laurel Ind
51
2,713,729
267,199
339,999
12.5%
18,175
0
0
$5.57
Leesburg Ind
17
373,654
0
0
0.0%
134,127
0
0
$0.00
Manassas Ind
171
4,353,345
121,274
121,274
2.8%
3,504
0
0
$8.41
Merrifield Ind
53
1,772,723
148,332
148,332
8.4%
(12,065)
0
0
$13.02
34
959,833
113,061
113,061
11.8%
8,470
0
0
$11.82
37
451,403
18,100
18,100
4.0%
(4,220)
0
0
$10.89
NE Ind
397
9,489,282
802,436
802,436
8.5%
55,970
0
0
$10.89
Newington Ind
217
6,966,930
855,850
863,250
12.4%
(75,262)
0
3,108
$9.34
North Rockville Ind
105
3,536,611
285,032
285,032
8.1%
6,546
0
0
$12.28
NW Ind
45
1,003,405
30,748
30,748
3.1%
2,100
0
0
$16.67
Oakton/Vienna Ind
16
267,922
6,400
6,400
2.4%
0
0
0
$15.85
54
1,118,880
80,839
80,839
7.2%
(20,070)
0
0
$10.19
130
3,524,346
379,013
397,913
11.3%
(7,027)
0
0
$6.48
2
32,785
0
0
0.0%
0
0
0
$0.00
148
3,004,636
257,080
264,580
8.8%
2,194
13,600
0
$11.60
Reston Ind
Rockville Ind
16
470,514
15,400
15,400
3.3%
0
0
0
$9.00
267
13,515,802
1,054,323
1,080,383
8.0%
39,092
64,522
697,416
$8.57
77
4,590,455
462,474
462,474
10.1%
(2,085)
0
0
$8.52
185
7,103,497
332,392
432,729
6.1%
125,550
208,084
$7.73
67
992,053
77,016
77,016
7.8%
0
0
$10.44
Silver Spring Ind
Springfield Ind
375,192
(9,720)
104
6,827,900
804,605
880,229
12.9%
122,259
0
0
$8.43
SW/SE Ind
29
416,192
0
0
0.0%
0
0
0
$12.00
45
1,065,115
53,366
53,366
5.0%
(10,333)
0
0
$8.31
7
487,812
72,201
72,201
14.8%
9,375
0
0
$12.37
Upper Marlboro Ind
36
910,195
122,996
122,996
13.5%
0
0
0
$6.41
Winchester City Ind
44
2,845,966
449,230
449,230
15.8%
3,600
0
0
$9.22
102
2,874,794
258,109
258,109
9.0%
(62,482)
0
0
$7.18
8.8%
460,637
Woodbridge Ind
Totals
4,510
146,872,680
12,208,832
12,888,051
203,672
1,447,940
$8.23
12
FIGURES AT A GLANCE
Total Industrial Submarket Statistics
Existing Inventory
Market
Beltsville Ind
Bowie Ind
Capitol Heights Ind
# Blds
Total RBA
First Quarter 2014
Vacancy
Direct SF
Total SF
Vac %
15
272,419
69,476
69,476
292
9,493,343
841,628
16
124,317
22,112
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted
Rates
$19.23
25.5%
(3,076)
0
0
843,628
8.9%
76,121
0
0
$8.09
22,112
17.8%
3,600
0
0
$20.00
69
4,724,554
414,300
414,300
8.8%
47,736
0
0
$6.50
151
3,361,421
546,569
546,569
16.3%
(226,791)
0
0
$5.47
19
1,148,545
16,200
16,200
1.4%
5,780
0
0
$7.31
155
5,277,015
345,134
345,134
6.5%
(9,729)
0
263,082
$7.06
17
292,016
0
0
0.0%
0
0
0
$20.00
$11.42
46
790,864
44,928
44,928
5.7%
1,000
0
0
389
7,127,999
269,894
269,894
3.8%
(22,861)
0
0
$6.83
Crystal City Ind
10
369,554
0
0
0.0%
68,000
0
0
$10.00
55
1,112,963
12,690
12,690
1.1%
2,837
0
0
$15.20
36
562,528
25,220
25,220
4.5%
4,465
0
0
$16.71
536
17,411,022
2,056,992
2,291,097
13.2%
(2,541)
0
0
$7.46
Gaithersburg Ind
248
7,776,703
710,048
717,010
9.2%
25,361
0
0
$11.96
Germantown Ind
26
1,225,478
98,092
102,882
8.4%
(28,369)
0
0
$11.66
Greenbelt Ind
10
525,616
216,703
216,703
41.2%
0
0
0
$10.88
Herndon Ind
36
1,361,316
145,465
145,465
10.7%
1,474
0
0
$14.86
43
1,109,508
100,243
100,243
9.0%
(4,900)
0
0
$11.11
121
3,854,493
423,752
437,467
11.3%
54,166
0
0
$10.39
62
491,781
45,624
45,624
9.3%
(4,990)
0
0
$11.30
223
14,656,642
1,555,896
1,700,732
11.6%
22,484
0
276,250
$6.52
Lanham Ind
65
3,224,386
291,547
291,547
9.0%
(20,688)
0
0
$8.53
Laurel Ind
80
3,675,171
393,583
466,383
12.7%
40,720
0
0
$6.10
Leesburg Ind
26
855,693
54,324
54,324
6.3%
132,044
0
0
$12.00
Manassas Ind
241
6,460,448
253,314
253,314
3.9%
19,496
0
0
$8.57
Merrifield Ind
81
2,557,370
222,704
222,704
8.7%
(14,417)
0
0
$13.61
48
1,255,103
160,668
160,668
12.8%
8,470
0
0
$13.37
42
505,966
18,100
18,100
3.6%
(4,220)
0
0
$10.89
NE Ind
416
10,068,043
831,320
831,320
8.3%
56,996
0
0
$11.38
Newington Ind
301
11,655,163
1,436,738
1,496,034
12.8%
(68,824)
0
3,108
$11.92
North Rockville Ind
166
6,576,239
569,559
578,561
8.8%
32,045
0
0
$15.22
NW Ind
54
1,218,713
34,848
34,848
2.9%
2,100
0
0
$16.08
Oakton/Vienna Ind
19
323,687
9,533
9,533
2.9%
0
0
0
$16.16
69
1,313,466
87,539
87,539
6.7%
(20,070)
0
0
$9.85
146
3,868,926
416,621
435,521
11.3%
(4,755)
0
0
$6.64
18
954,422
183,271
200,601
21.0%
(9,770)
0
0
$16.23
I-395 Corridor Ind
Landover/Largo Ind
Reston Ind
188
4,175,209
470,011
480,011
11.5%
2,130
13,600
0
$13.71
40
1,747,413
170,875
170,875
9.8%
1,405
0
0
$14.00
442
24,801,251
2,381,313
2,428,966
9.8%
116,625
64,522
697,416
$9.45
201
11,290,407
1,392,032
1,400,786
12.4%
45,315
0
0
$10.89
275
10,625,365
695,580
805,908
7.6%
388,450
125,550
337,934
$8.29
77
1,273,895
89,616
89,616
7.0%
0
0
$10.67
Rockville Ind
Silver Spring Ind
Springfield Ind
(9,720)
156
9,398,085
1,055,194
1,138,951
12.1%
129,189
0
0
$10.22
SW/SE Ind
32
839,746
0
0
0.0%
0
0
0
$12.00
55
1,313,661
86,378
86,378
6.6%
(10,333)
0
0
$9.18
19
882,687
100,601
100,601
11.4%
11,175
0
0
$13.29
Upper Marlboro Ind
38
948,095
124,146
124,146
13.1%
0
0
0
$6.47
Winchester City Ind
53
3,629,327
454,230
454,230
12.5%
3,600
0
0
$9.14
141
4,133,365
615,150
625,877
15.1%
(22,669)
123,068
0
$9.58
10.1%
814,061
326,740
Woodbridge Ind
Totals
6,064
212,641,399
20,559,761
21,414,716
1,577,790
$9.67
13
FIGURES AT A GLANCE
Flex Market Statistics
Existing Inventory
Period
# Blds
2014 1q
2013 4q
2013 3q
2013 2q
2013 1q
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
1,554
1,553
1,552
1,549
1,548
1,548
1,544
1,539
1,536
1,519
1,488
1,451
1,431
1,400
1,372
1,353
Total RBA
65,768,719
65,645,651
65,586,657
65,325,913
65,394,933
65,279,513
64,769,502
63,979,376
63,736,957
62,616,502
60,790,505
59,170,443
58,271,433
56,063,114
54,745,165
54,030,011
First Quarter 2014
Vacancy
Direct SF
8,350,929
8,533,920
8,669,128
8,898,859
8,948,398
8,724,502
9,048,447
8,722,508
8,606,460
7,458,645
6,894,816
5,906,471
6,169,938
6,788,335
7,544,665
6,929,029
Total SF
Net
Deliveries
Vac %
Absorption
# Blds
13.0%
13.3%
13.6%
14.0%
14.1%
13.8%
14.2%
14.4%
14.7%
13.0%
12.0%
10.7%
11.3%
12.8%
15.1%
14.5%
353,424
219,641
498,155
(20,657)
(92,767)
738,729
808,522
345,540
(88,441)
1,013,366
620,578
1,166,287
2,778,340
2,395,887
283,979
300,543
1
1
3
2
1
4
7
5
17
31
37
20
31
29
20
27
8,526,665
8,757,021
8,917,668
9,155,079
9,203,442
8,995,255
9,223,973
9,242,369
9,345,490
8,136,594
7,323,963
6,324,479
6,591,756
7,161,777
8,239,715
7,808,540
Total RBA
123,068
58,994
260,744
40,980
150,000
510,011
888,876
360,564
1,120,455
1,825,997
1,620,062
837,766
2,208,319
1,350,982
915,154
1,463,531
UC Inventory
# Blds
1
2
2
5
6
7
5
9
4
16
23
33
22
20
22
11
Total RBA
129,850
252,918
182,062
442,806
424,792
574,792
534,011
1,254,147
289,054
1,118,247
1,454,421
1,547,854
1,096,208
1,443,056
1,063,869
709,023
Quoted
Rates
$12.70
$12.88
$12.83
$12.67
$12.55
$12.46
$13.03
$12.84
$12.45
$13.39
$13.96
$14.11
$13.15
$12.13
$13.26
$13.36
Warehouse Market Statistics
Existing Inventory
Period
# Blds
2014 1q
2013 4q
2013 3q
2013 2q
2013 1q
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
4,510
4,507
4,504
4,507
4,501
4,500
4,497
4,494
4,493
4,479
4,440
4,400
4,362
4,304
4,277
4,252
Total RBA
146,872,680
146,669,008
145,911,058
145,924,685
145,746,798
145,443,986
145,451,996
145,168,490
145,239,587
144,654,014
142,443,671
140,669,136
138,450,950
135,454,963
134,063,380
133,239,411
First Quarter 2014
Vacancy
Direct SF
12,208,832
12,469,094
12,423,833
12,756,510
12,731,775
12,718,060
13,718,160
14,940,117
15,181,129
12,306,993
10,310,436
9,602,548
9,279,746
8,507,789
9,009,008
9,490,560
Net
Deliveries
Total SF
Vac %
Absorption
# Blds
12,888,051
13,145,016
13,112,335
13,314,123
13,315,237
13,433,487
14,783,935
15,876,342
16,030,539
13,300,984
10,813,674
10,067,380
9,604,055
8,827,997
9,813,553
10,304,222
8.8%
9.0%
9.0%
9.1%
9.1%
9.2%
10.2%
10.9%
11.0%
9.2%
7.6%
7.2%
6.9%
6.5%
7.3%
7.7%
460,637
725,269
188,161
179,001
421,062
1,342,438
1,375,913
83,100
(2,143,982)
(276,967)
1,028,241
1,754,861
2,219,929
2,377,139
1,314,638
(242,055)
3
3
0
6
4
9
6
6
18
40
42
47
61
31
26
28
Total RBA
203,672
757,950
0
177,887
414,256
586,222
347,501
249,227
690,164
2,290,641
1,793,998
2,536,362
3,186,365
1,418,943
835,969
946,845
UC Inventory
# Blds
13
10
9
5
8
12
9
6
5
18
27
35
41
55
24
19
Total RBA
1,447,940
945,759
1,243,625
1,138,411
756,437
1,170,693
637,294
347,501
225,827
690,164
1,635,648
1,853,206
2,150,388
2,637,615
1,167,604
735,172
Quoted
Rates
$8.23
$8.22
$8.11
$8.02
$7.81
$7.77
$7.73
$7.93
$8.21
$8.62
$8.71
$8.49
$8.30
$7.59
$7.42
$6.50
Total Industrial Market Statistics
Existing Inventory
Period
# Blds
2014 1q
2013 4q
2013 3q
2013 2q
2013 1q
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
6,064
6,060
6,056
6,056
6,049
6,048
6,041
6,033
6,029
5,998
5,928
5,851
5,793
5,704
5,649
5,605
Total RBA
212,641,399
212,314,659
211,497,715
211,250,598
211,141,731
210,723,499
210,221,498
209,147,866
208,976,544
207,270,516
203,234,176
199,839,579
196,722,383
191,518,077
188,808,545
187,269,422
First Quarter 2014
Vacancy
Direct SF
20,559,761
21,003,014
21,092,961
21,655,369
21,680,173
21,442,562
22,766,607
23,662,625
23,787,589
19,765,638
17,205,252
15,509,019
15,449,684
15,296,124
16,553,673
16,419,589
Net
Deliveries
Total SF
Vac %
Absorption
# Blds
21,414,716
21,902,037
22,030,003
22,469,202
22,518,679
22,428,742
24,007,908
25,118,711
25,376,029
21,437,578
18,137,637
16,391,859
16,195,811
15,989,774
18,053,268
18,112,762
10.1%
10.3%
10.4%
10.6%
10.7%
10.6%
11.4%
12.0%
12.1%
10.3%
8.9%
8.2%
8.2%
8.3%
9.6%
9.7%
814,061
944,910
686,316
158,344
328,295
2,081,167
2,184,435
428,640
(2,232,423)
736,399
1,648,819
2,921,148
4,998,269
4,773,026
1,598,617
58,488
4
4
3
8
5
13
13
11
35
71
79
67
92
60
46
55
Total RBA
326,740
816,944
260,744
218,867
564,256
1,096,233
1,236,377
609,791
1,810,619
4,116,638
3,414,060
3,374,128
5,394,684
2,769,925
1,751,123
2,410,376
UC Inventory
# Blds
14
12
11
10
14
19
14
15
9
34
50
68
63
75
46
30
Total RBA
1,577,790
1,198,677
1,425,687
1,581,217
1,181,229
1,745,485
1,171,305
1,601,648
514,881
1,808,411
3,090,069
3,401,060
3,246,596
4,080,671
2,231,473
1,444,195
Quoted
Rates
$9.67
$9.69
$9.57
$9.47
$9.27
$9.21
$9.40
$9.46
$9.56
$10.29
$10.58
$10.41
$10.14
$9.49
$10.03
$8.20
14
LEASING ACTIVITY
Historical Rental Rates
Based on Quoted Rental Rates
Flex
Warehouse
Total Market
$14.00
$12.00
Dollars/SF/Year
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacancy by Available Space Type
Vacancy by Building Type
Percent of All Vacant Space in Direct vs. Sublet
Percent of All Vacant Space by Building Type
Washington
United States
4%
Washington
United States
2%
15%
60%
40%
96%
Direct
85%
98%
Sublet
Direct
Flex
Sublet
Warehouse
Flex
Warehouse
U.S. Rental Rate Comparison
Future Space Available
Based on Average Quoted Rental Rates
Space Scheduled to be Available for Occupancy*
Washington, D.C.
United States
1.4
$12.00
1.2
1.2
$10.00
Millions
Dollars/SF/Year
1.0
$8.00
$6.00
$4.00
0.8
0.8
0.6
0.4
$2.00
0.2
$0.00
0.0
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
0.3
0.1
2014 2q
2014 3q
2014 4q
2015 1q
0.0
0.0
2015 2q
2015 3q
* Includes Under Construction Space
15
LEASING ACTIVITY
Select Top Industrial Leases
Based on Leased Square Footage For Deals Signed in 2014
Building
Submarket
SF
Qtr
Tenant Name
Tenant Rep Company
Landlord Rep Company
1
Gaither Distribution Center*
North Rockville Ind
150,000
1st
National Institutes of Health
N/A
2
Renaissance Park at Dulles 5*
63,346
1st
Laboratory Corporation of America« Holdings
Direct Deal
3
9800 Medical Center Dr - Bldg B*
North Rockville Ind
61,186
1st
NIH Chemical Genomics Center
N/A
N/A
4
45200 Prologis Plz
34,446
1st
CSVA Services, LLC
N/A
CBRE
5
The Brick Yard - Building G
Laurel Ind
33,600
1st
Metropolitan Moving and Storage
N/A
TSC Realty Services, LLC
6
Fullerton Square
Newington Ind
31,150
1st
MVLE
EDGE Commercial Real Estate
7
Beltsville Business Park - Bldg 1
Beltsville Ind
28,600
1st
N/A
Trimark
8
Beaumeade Corporate Park - Building III
28,060
1st
N/A
N/A
Transwestern
9
Pickett Industrial Park Bldg 1
I-395 Corridor Ind
24,053
1st
N/A
N/A
Transwestern
10
Cloverleaf Center - Bldg 3
Germantown Ind
24,000
1st
Worldshine International
N/A
First Potomac Realty Trust
11
Gude Commerce Center
North Rockville Ind
21,914
1st
N/A
N/A
12
45190 Prologis Plz
19,358
1st
Air Cartage Express
N/A
CBRE
13
6021 Farrington Ave
Springfield Ind
18,650
1st
Two Marines Moving, Inc.
The Genau Group
14
5000 Boiling Brook Pky
17,475
1st
M&T Marble & Granite
Metropolitan Asset Management, Inc.
15
Virginia 95 Business Park 2
Newington Ind
16,212
1st
FICPA
Boston Properties, Inc.
16
Beaumeade Corporate Park - Building V
16,000
1st
N/A
N/A
Merritt Properties, LLC
17
Beaumont @ Lafayette A
15,923
1st
N/A
N/A
Cambridge Property Group, LLC
18
Fullerton Industrial Center
Newington Ind
15,531
1st
Smart Source Rentals
Donohoe Real Estate Services
JLL
19
East Gude Center
North Rockville Ind
15,357
1st
N/A
Sperry Van Ness Commercial Real Est
RM Associates
20
1728 Shookstown Rd
15,124
1st
N/A
N/A
Grady O’Rear
21
Earhart Bldg*
15,058
1st
L3 Communications
Cassidy Turley
Transwestern
22
15918 Tournament Dr*
North Rockville Ind
14,850
1st
Arata Expositions
Cresa Washington DC
HBW Group
23
Westview Business Park - Building I
14,280
1st
N/A
N/A
St. John Properties
24
Northpointe 11
14,229
1st
N/A
N/A
Transwestern
25
Dulles Summit Court Bldg D-2
14,060
1st
Ferguson
JLL
26
Ammendale Tech Park Ph 1
Beltsville Ind
13,750
1st
N/A
N/A
JLL
27
Riverside Tech. Park - Building D
12,735
1st
N/A
N/A
St. John Properties
28
Southgate 8
Lanham Ind
12,253
1st
N/A
N/A
Transwestern
29
Fleet Ind Park Bldg 2
Springfield Ind
12,000
1st
Ferguson Bath
30
5910 Farrington Ave
I-395 Corridor Ind
10,960
1st
Two Men and A Truck Moving
Avison Young
31
Prosperity Business Center
Merrifield Ind
10,770
1st
N/A
N/A
32
Beaumont @ Lafayette D
10,700
1st
N/A
Direct Deal
Cambridge Property Group, LLC
33
Enterprise Center-Bldg 3
10,544
1st
Karma Vitality Studio
N/A
34
Wellington Center - Building A
10,540
1st
N/A
N/A
Lincoln Property Company
35
Northern VA Industrial 5
Newington Ind
10,090
1st
GSA
N/A
JLL
36
Brookfield Park Ph 2 Bldg A
10,088
1st
N/A
Sherlin Corporation
Sherlin Corporation
37
Ammendale Business Campus E
Beltsville Ind
9,600
1st
Leaf Guard of Maryland, LLC
Lee & Associates
Avison Young
38
Southgate One
9,400
1st
EKFOX
The Ezra Company
BECO Management, Inc.
39
Northern VA Industrial 3
Newington Ind
9,400
1st
Environamics
Direct Deal
JLL
40
Renaissance Park at Dulles 9
8,720
1st
US Government
Direct Deal
* Renewal
16
SALES ACTIVITY
The Optimist Sales Index
Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter
Price/SF
$500
9.0%
$450
8.0%
$400
7.0%
$350
6.0%
$300
5.0%
$250
4.0%
$200
3.0%
$150
2.0%
$100
1.0%
$50
0.0%
Dollars/SF
Cap Rate Percentage
Cap Rate
10.0%
$0
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
Sales Volume & Price
Sales Analysis by Building Size
Based on Industrial Building Sales of 15,000 SF and Larger
Based on Industrial Bldg Sales From Jan. 2013 - Dec. 2013
Sales Volume
Bldg Size
Price/SF
$250
$140
RBA
$ Volume
Price/SF Cap Rate
< 25,000 SF
115
1,189,203
$
130,693,364
$ 109.90
8.50%
25K-99K SF
45
2,006,213
$
214,007,351
$ 106.67
7.49%
100K-249K SF
16
2,194,482
$
162,920,000
$ 74.24
6.51%
>250K SF
3
1,289,747
$
63,050,000
$ 48.89
6.75%
$200
$120
$100
$150
$80
$100
Price/SF
Millions of Sales Volume Dollars
#
$160
$60
$40
$50
$20
$0
$0
2010 1q 2010 3q 2011 1q 2011 3q 2012 1q 2012 3q 2013 1q 2013 3q
U.S. Price/SF Comparison
U.S. Cap Rate Comparison
Washington
$160
US
$140
US
10.0%
Cap Rate Percentage
$120
Dollars per SF
Washington
12.0%
$100
$80
$60
$40
8.0%
6.0%
4.0%
2.0%
$20
$0
0.0%
2010
1q
2010
3q
2011
1q
2011
3q
2012
1q
2012
3q
2013
1q
2013
3q
2010
1q
2010
3q
2011
1q
2011
3q
2012
1q
2012
3q
2013
1q
2013
3q
17
SALES ACTIVITY
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
18
A R L I N G T O N / A L E X A N D R I A
MARKET HIGHLIGHTS - FLEX & WAREHOUSE
M A R K E T
Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse
Delivered SF
0.150
Absorption SF
Vacancy
14.0%
12.0%
10.0%
0.050
8.0%
0.000
6.0%
(0.050)
Percent Vacant
Millions SF
0.100
4.0%
(0.100)
2.0%
(0.150)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Historical Analysis, Flex and Warehouse
Direct SF
0.80
$11.85
Sublet SF
$11.80
0.70
$11.75
Dollars/SF/Year
Millions SF
0.60
0.50
0.40
0.30
$11.70
$11.65
$11.60
$11.55
0.20
$11.50
0.10
$11.45
$11.40
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
270
6,922,895
Vacancy
Vacant SF
Vacancy %
607,172
8.8%
Net
Absorption
101,857
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$11.58
2013 4q
270
6,922,895
709,029
10.2%
(69,005)
0
0
0
0
$11.82
2013 3q
270
6,922,895
640,024
9.2%
53,451
0
0
0
0
$11.65
2013 2q
270
6,922,895
693,475
10.0%
22,516
0
0
0
0
$11.75
2013 1q
270
6,922,895
715,991
10.3%
4,338
0
0
0
0
$11.54
2012 4q
274
7,068,919
866,353
12.3%
(116,478)
0
0
0
0
$11.46
2012 3q
274
7,068,919
749,875
10.6%
(64,337)
0
0
0
0
$11.26
2012 2q
274
7,068,919
685,538
9.7%
16,787
1
72,850
0
0
$11.46
2012 1q
273
6,996,069
629,475
9.0%
20,935
0
0
1
72,850
$10.93
2011 4q
276
7,073,973
728,314
10.3%
(60,207)
0
0
1
72,850
$11.13
2011 3q
277
7,142,723
736,857
10.3%
(68,930)
0
0
1
72,850
$11.40
2011 2q
277
7,142,723
667,927
9.4%
(19,145)
0
0
0
0
$11.61
2011 1q
277
7,142,723
648,782
9.1%
10,564
0
0
0
0
$11.90
2010 4q
277
7,142,723
659,346
9.2%
(139,461)
0
0
0
0
$12.10
2010 3q
278
7,241,723
618,885
8.5%
(43,138)
0
0
0
0
$12.32
2010 2q
278
7,241,723
575,747
8.0%
37,449
0
0
0
0
$12.77
19
B E T H E S D A / S I LV E R
S P R I N G
M A R K E T
Delivered SF
0.040
Absorption SF
Vacancy
12.0%
0.030
10.0%
8.0%
0.010
6.0%
0.000
4.0%
(0.010)
Percent Vacant
Millions SF
0.020
2.0%
(0.020)
(0.030)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.14
$12.60
Sublet SF
$12.40
0.12
$12.20
Dollars/SF/Year
Millions SF
0.10
0.08
0.06
0.04
$11.80
$11.60
$11.40
$11.20
0.02
$11.00
$10.80
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$12.00
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
93
1,398,212
Vacancy
Vacant SF
Vacancy %
111,728
8.0%
Net
Absorption
(6,120)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$11.60
2013 4q
93
1,398,212
105,608
7.6%
3,028
0
0
0
0
$11.48
2013 3q
93
1,398,212
108,636
7.8%
21,140
0
0
0
0
$11.67
2013 2q
93
1,398,212
129,776
9.3%
(3,104)
0
0
0
0
$11.40
2013 1q
93
1,398,212
126,672
9.1%
6,254
0
0
0
0
$12.34
2012 4q
93
1,398,212
132,926
9.5%
(19,181)
0
0
0
0
$12.31
2012 3q
93
1,398,212
113,745
8.1%
(16,559)
0
0
0
0
$12.13
2012 2q
93
1,398,212
97,186
7.0%
28,160
0
0
0
0
$12.17
2012 1q
93
1,398,212
125,346
9.0%
(1,691)
0
0
0
0
$11.88
2011 4q
93
1,398,212
123,655
8.8%
16,191
0
0
0
0
$10.90
2011 3q
93
1,398,212
139,846
10.0%
(15,140)
0
0
0
0
$10.81
2011 2q
93
1,398,212
124,706
8.9%
3,687
0
0
0
0
$10.83
2011 1q
93
1,398,212
128,393
9.2%
(2,990)
0
0
0
0
$10.75
2010 4q
93
1,398,212
125,403
9.0%
(13,026)
0
0
0
0
$10.66
2010 3q
93
1,398,212
112,377
8.0%
(11,830)
0
0
0
0
$11.02
2010 2q
93
1,398,212
100,547
7.2%
4,291
0
0
0
0
$10.96
20
C O L L E G E
P A R K / C H E V E R LY
M A R K E T
Delivered SF
Absorption SF
Vacancy
9.0%
0.200
8.0%
0.150
7.0%
0.100
6.0%
0.050
5.0%
0.000
4.0%
(0.050)
3.0%
(0.100)
2.0%
(0.150)
1.0%
(0.200)
Percent Vacant
Millions SF
0.250
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.45
$7.30
Sublet SF
$7.20
0.40
$7.10
Dollars/SF/Year
Millions SF
0.35
0.30
0.25
0.20
0.15
$7.00
$6.90
$6.80
0.10
$6.70
0.05
$6.60
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
444
8,441,660
Vacancy
Vacant SF
Vacancy %
356,272
4.2%
Net
Absorption
(33,194)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$7.19
2013 4q
444
8,441,660
323,078
3.8%
50,007
0
0
0
0
$6.91
2013 3q
444
8,441,660
373,085
4.4%
18,955
0
0
0
0
$6.97
2013 2q
444
8,441,660
392,040
4.6%
5,262
0
0
0
0
$6.92
2013 1q
444
8,441,660
397,302
4.7%
208,769
0
0
0
0
$6.83
2012 4q
444
8,441,660
606,071
7.2%
2,236
0
0
0
0
$6.93
2012 3q
444
8,441,660
608,307
7.2%
68,271
0
0
0
0
$6.80
2012 2q
444
8,441,660
676,578
8.0%
(157,042)
0
0
0
0
$6.64
2012 1q
444
8,441,660
519,536
6.2%
(25,828)
0
0
0
0
$6.68
2011 4q
444
8,441,660
493,708
5.8%
9,099
0
0
0
0
$6.61
2011 3q
444
8,441,660
502,807
6.0%
14,802
0
0
0
0
$6.55
2011 2q
444
8,441,660
517,609
6.1%
(20,898)
0
0
0
0
$6.69
2011 1q
444
8,441,660
496,711
5.9%
(68,972)
0
0
0
0
$6.82
2010 4q
444
8,441,660
427,739
5.1%
80,016
0
0
0
0
$7.20
2010 3q
444
8,441,660
507,755
6.0%
(51,671)
0
0
0
0
$7.52
2010 2q
444
8,441,660
456,084
5.4%
53,493
0
0
0
0
$7.45
21
D I S T R I C T
O F
C O L U M B I A
M A R K E T
Delivered SF
Absorption SF
Vacancy
12.0%
0.150
10.0%
0.100
8.0%
0.050
6.0%
0.000
4.0%
(0.050)
2.0%
(0.100)
Percent Vacant
Millions SF
0.200
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
$14.00
Sublet SF
0.94
$12.00
0.92
$10.00
Dollars/SF/Year
Millions SF
0.96
0.90
0.88
0.86
0.84
$6.00
$4.00
$2.00
0.82
$0.00
0.80
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$8.00
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
519
12,418,518
Vacancy
Vacant SF
Vacancy %
866,168
7.0%
Net
Absorption
59,096
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$11.53
2013 4q
519
12,418,518
925,264
7.5%
13,707
0
0
0
0
$11.10
2013 3q
519
12,418,518
938,971
7.6%
(15,372)
0
0
0
0
$10.33
2013 2q
522
12,432,145
937,226
7.5%
(78,656)
0
0
0
0
$10.14
2013 1q
522
12,432,145
858,570
6.9%
(26,254)
0
0
0
0
$9.37
2012 4q
522
12,432,145
832,316
6.7%
100,084
0
0
0
0
$8.81
2012 3q
522
12,432,145
932,400
7.5%
140,324
0
0
0
0
$8.59
2012 2q
522
12,432,145
1,072,724
8.6%
3,940
0
0
0
0
$8.54
2012 1q
522
12,432,145
1,076,664
8.7%
128,280
0
0
0
0
$8.59
2011 4q
522
12,432,145
1,204,944
9.7%
(59,308)
0
0
0
0
$9.14
2011 3q
522
12,432,145
1,145,636
9.2%
(72,110)
0
0
0
0
$9.47
2011 2q
522
12,432,145
1,073,526
8.6%
114,352
1
121,608
0
0
$9.61
2011 1q
521
12,310,537
1,066,270
8.7%
6,164
0
0
1
121,608
$9.18
2010 4q
522
12,340,537
1,102,434
8.9%
(3,893)
0
0
1
121,608
$9.57
2010 3q
523
12,505,537
1,263,541
10.1%
(155,491)
0
0
1
121,608
$9.52
2010 2q
524
12,519,581
1,122,094
9.0%
(81,814)
0
0
0
0
$9.49
22
D U L L E S
C O R R I D O R
M A R K E T
Delivered SF
0.800
Absorption SF
Vacancy
16.0%
0.700
14.0%
12.0%
0.500
10.0%
0.400
8.0%
0.300
6.0%
0.200
Percent Vacant
Millions SF
0.600
4.0%
0.100
2.0%
0.000
(0.100)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
$10.60
Sublet SF
$10.50
4.30
$10.40
4.25
$10.30
Dollars/SF/Year
Millions SF
4.35
4.20
4.15
4.10
$10.10
$10.00
$9.90
$9.80
4.05
$9.70
4.00
$9.60
$9.50
3.95
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$10.20
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
697
38,407,396
Vacancy
Vacant SF
Vacancy %
4,175,818
10.9%
Net
Absorption
153,644
Delivered Inventory
# Bldgs
Total RBA
1
64,522
UC Inventory
# Bldgs
Total RBA
5
697,416
Quoted
Rates
$10.49
2013 4q
696
38,342,874
4,264,940
11.1%
449,257
2
397,400
4
595,417
$10.16
2013 3q
694
37,945,474
4,316,797
11.4%
248,075
3
260,744
5
740,817
$9.97
2013 2q
691
37,684,730
4,304,128
11.4%
131,930
3
121,744
6
913,055
$9.93
2013 1q
688
37,562,986
4,314,314
11.5%
144,338
1
150,000
7
600,488
$9.86
2012 4q
687
37,412,986
4,308,652
11.5%
332,078
0
0
8
750,488
$9.85
2012 3q
687
37,412,986
4,640,730
12.4%
359,662
1
11,484
3
388,000
$9.77
2012 2q
686
37,401,502
4,988,908
13.3%
236,266
3
293,746
4
399,484
$9.85
2012 1q
683
37,107,756
4,931,428
13.3%
(7,341)
3
188,874
6
475,230
$9.78
2011 4q
681
36,977,503
4,793,834
13.0%
89,201
2
229,164
7
502,620
$9.76
2011 3q
679
36,748,339
4,653,871
12.7%
418,598
2
274,920
5
381,788
$9.88
2011 2q
677
36,473,419
4,797,549
13.2%
717,742
1
152,138
4
504,084
$9.69
2011 1q
676
36,321,281
5,363,153
14.8%
244,010
3
188,155
5
656,222
$10.22
2010 4q
673
36,133,126
5,419,008
15.0%
369,360
0
0
8
844,377
$9.72
2010 3q
673
36,133,126
5,788,368
16.0%
39,267
0
0
5
391,223
$9.84
2010 2q
673
36,133,126
5,827,635
16.1%
275,669
3
249,814
2
108,420
$9.87
23
E
M O N T G O M E R Y
C O U N T Y
M A R K E T
Delivered SF
Absorption SF
Vacancy
16.0%
0.060
14.0%
0.040
12.0%
0.020
10.0%
0.000
8.0%
(0.020)
6.0%
(0.040)
4.0%
(0.060)
2.0%
(0.080)
Percent Vacant
Millions SF
0.080
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.30
$13.40
Sublet SF
$13.20
$13.00
Dollars/SF/Year
Millions SF
0.25
0.20
0.15
0.10
$12.80
$12.60
$12.40
$12.20
0.05
$12.00
$11.80
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
102
2,239,194
Vacancy
Vacant SF
Vacancy %
216,499
9.7%
Net
Absorption
(3,585)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$12.86
2013 4q
102
2,239,194
212,914
9.5%
(1,938)
0
0
0
0
$12.41
2013 3q
102
2,239,194
210,976
9.4%
70,302
0
0
0
0
$12.48
2013 2q
102
2,239,194
281,278
12.6%
(8,732)
0
0
0
0
$12.92
2013 1q
102
2,239,194
272,546
12.2%
10,220
0
0
0
0
$13.27
2012 4q
102
2,239,194
282,766
12.6%
13,325
0
0
0
0
$13.45
2012 3q
102
2,239,194
296,091
13.2%
1,900
0
0
0
0
$13.31
2012 2q
102
2,239,194
297,991
13.3%
31,190
0
0
0
0
$13.23
2012 1q
102
2,239,194
329,181
14.7%
(58,068)
0
0
0
0
$12.86
2011 4q
102
2,239,194
271,113
12.1%
(22,346)
0
0
0
0
$13.18
2011 3q
102
2,239,194
248,767
11.1%
4,525
0
0
0
0
$13.37
2011 2q
102
2,239,194
253,292
11.3%
4,482
0
0
0
0
$12.94
2011 1q
102
2,239,194
257,774
11.5%
(3,834)
0
0
0
0
$12.68
2010 4q
102
2,239,194
253,940
11.3%
(33,825)
0
0
0
0
$12.87
2010 3q
102
2,239,194
220,115
9.8%
(38,892)
0
0
0
0
$13.23
2010 2q
102
2,239,194
181,223
8.1%
57,733
0
0
0
0
$13.86
24
F A I R F A X
M A R K E T
Delivered SF
Absorption SF
Vacancy
12.0%
0.050
10.0%
0.000
8.0%
(0.050)
6.0%
(0.100)
4.0%
(0.150)
2.0%
(0.200)
Percent Vacant
Millions SF
0.100
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.43
$14.60
Sublet SF
0.42
$14.40
0.42
$14.20
Dollars/SF/Year
Millions SF
0.41
0.41
0.40
0.40
0.39
0.39
$14.00
$13.80
$13.60
$13.40
0.38
$13.20
0.38
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
201
5,117,136
Vacancy
Vacant SF
Vacancy %
402,986
7.9%
Net
Absorption
2,223
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$13.72
2013 4q
201
5,117,136
405,209
7.9%
13,085
0
0
0
0
$13.73
2013 3q
201
5,117,136
418,294
8.2%
(13,751)
0
0
0
0
$13.92
2013 2q
201
5,117,136
404,543
7.9%
(11,048)
0
0
0
0
$14.31
2013 1q
201
5,117,136
393,495
7.7%
(28,475)
0
0
0
0
$14.50
2012 4q
201
5,117,136
365,020
7.1%
(4,083)
0
0
0
0
$14.69
2012 3q
201
5,117,136
360,937
7.1%
43,687
0
0
0
0
$14.63
2012 2q
202
5,229,843
517,331
9.9%
(168,378)
0
0
0
0
$14.67
2012 1q
202
5,229,843
348,953
6.7%
9,793
0
0
0
0
$14.64
2011 4q
202
5,229,843
358,746
6.9%
63,561
0
0
0
0
$14.05
2011 3q
202
5,229,843
422,307
8.1%
(538)
0
0
0
0
$13.65
2011 2q
204
5,270,473
462,399
8.8%
(43,945)
0
0
0
0
$13.62
2011 1q
204
5,270,473
418,454
7.9%
(4,206)
0
0
0
0
$13.57
2010 4q
205
5,293,838
437,613
8.3%
16,559
0
0
0
0
$13.55
2010 3q
205
5,293,838
454,172
8.6%
37,962
0
0
0
0
$13.72
2010 2q
205
5,293,838
492,134
9.3%
17,274
0
0
0
0
$13.83
25
F R E D E R I C K
C O U N T Y
M A R K E T
Delivered SF
0.500
Absorption SF
Vacancy
20.0%
18.0%
0.400
16.0%
14.0%
12.0%
0.200
10.0%
0.100
8.0%
Percent Vacant
Millions SF
0.300
6.0%
0.000
4.0%
(0.100)
2.0%
(0.200)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
3.00
$7.50
Sublet SF
$7.40
$7.30
Dollars/SF/Year
Millions SF
2.50
2.00
1.50
1.00
$7.20
$7.10
$7.00
$6.90
$6.80
0.50
$6.70
$6.60
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
536
17,411,022
Vacancy
Vacant SF
Vacancy %
2,291,097
13.2%
Net
Absorption
(2,541)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$7.46
2013 4q
536
17,411,022
2,288,556
13.1%
74,100
0
0
0
0
$7.44
2013 3q
536
17,411,022
2,362,656
13.6%
289,246
0
0
0
0
$7.25
2013 2q
536
17,411,022
2,651,902
15.2%
35,512
0
0
0
0
$7.11
2013 1q
536
17,411,022
2,687,414
15.4%
(105,508)
0
0
0
0
$6.95
2012 4q
536
17,411,022
2,581,906
14.8%
110,468
0
0
0
0
$6.93
2012 3q
536
17,411,022
2,692,374
15.5%
(30,567)
0
0
0
0
$6.82
2012 2q
536
17,411,022
2,661,807
15.3%
397,067
1
341,271
0
0
$6.75
2012 1q
535
17,069,751
2,717,603
15.9%
137,819
0
0
1
341,271
$6.80
2011 4q
535
17,069,751
2,855,422
16.7%
81,779
0
0
1
341,271
$6.84
2011 3q
535
17,069,751
2,937,201
17.2%
(53,683)
0
0
1
341,271
$7.10
2011 2q
535
17,069,751
2,883,518
16.9%
162,450
0
0
1
341,271
$7.08
2011 1q
535
17,069,751
3,045,968
17.8%
(106,862)
1
8,578
1
341,271
$6.85
2010 4q
534
17,061,173
2,930,528
17.2%
(134,780)
0
0
2
349,849
$6.84
2010 3q
534
17,061,173
2,795,748
16.4%
310,512
0
0
2
349,849
$6.64
2010 2q
534
17,061,173
3,106,260
18.2%
(117,888)
0
0
1
341,271
$6.62
26
I - 2 7 0
C O R R I D O R
M A R K E T
Delivered SF
Absorption SF
Vacancy
12.0%
0.300
11.5%
0.200
11.0%
0.100
10.5%
0.000
10.0%
(0.100)
9.5%
(0.200)
9.0%
(0.300)
Percent Vacant
Millions SF
0.400
8.5%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
2.50
$13.40
Sublet SF
$13.30
$13.20
2.40
Dollars/SF/Year
Millions SF
$13.10
2.30
2.20
2.10
$13.00
$12.90
$12.80
$12.70
$12.60
$12.50
2.00
$12.40
$12.30
1.90
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
719
22,118,240
Vacancy
Vacant SF
Vacancy %
2,139,375
9.7%
Net
Absorption
34,737
Delivered Inventory
# Bldgs
Total RBA
1
13,600
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$13.29
2013 4q
718
22,104,640
2,160,512
9.8%
129,974
0
0
1
13,600
$13.23
2013 3q
718
22,104,640
2,290,486
10.4%
420
0
0
1
13,600
$12.77
2013 2q
718
22,104,640
2,290,906
10.4%
50,561
0
0
0
0
$12.68
2013 1q
719
22,214,640
2,451,467
11.0%
(211,207)
0
0
0
0
$12.89
2012 4q
719
22,214,640
2,240,260
10.1%
324,328
0
0
0
0
$12.34
2012 3q
719
22,214,640
2,564,588
11.5%
(23,234)
0
0
0
0
$12.63
2012 2q
719
22,214,640
2,541,354
11.4%
(84,907)
0
0
0
0
$12.74
2012 1q
719
22,214,640
2,456,447
11.1%
42,785
0
0
0
0
$12.95
2011 4q
719
22,214,640
2,499,232
11.3%
(8,102)
0
0
0
0
$12.86
2011 3q
719
22,214,640
2,491,130
11.2%
(18,413)
0
0
0
0
$12.90
2011 2q
719
22,214,640
2,472,717
11.1%
58,089
0
0
0
0
$12.90
2011 1q
719
22,214,640
2,530,806
11.4%
32,576
0
0
0
0
$12.64
2010 4q
719
22,214,640
2,563,382
11.5%
(83,309)
0
0
0
0
$12.53
2010 3q
720
22,325,200
2,590,633
11.6%
(7,055)
0
0
0
0
$12.54
2010 2q
720
22,325,200
2,583,578
11.6%
(217,560)
0
0
0
0
$13.02
27
L A N H A M / L A N D O V E R / B O W I E
M A R K E T
Delivered SF
Absorption SF
Vacancy
14.0%
0.300
12.0%
0.200
10.0%
0.100
8.0%
0.000
6.0%
(0.100)
4.0%
(0.200)
2.0%
(0.300)
Percent Vacant
Millions SF
0.400
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
3.00
$7.20
Sublet SF
$7.10
2.50
Dollars/SF/Year
Millions SF
$7.00
2.00
1.50
1.00
0.50
$6.80
$6.70
$6.60
$6.50
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$6.90
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
357
22,605,582
Vacancy
Vacant SF
Vacancy %
2,406,579
10.6%
Net
Absorption
49,532
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
2
276,250
Quoted
Rates
$6.81
2013 4q
357
22,605,582
2,456,111
10.9%
30,041
1
360,550
0
0
$6.97
2013 3q
356
22,245,032
2,125,602
9.6%
(59,890)
0
0
1
360,550
$7.00
2013 2q
356
22,245,032
2,065,712
9.3%
(182,408)
0
0
1
360,550
$7.11
2013 1q
356
22,245,032
1,883,304
8.5%
(71,188)
0
0
1
360,550
$6.75
2012 4q
356
22,245,032
1,812,116
8.1%
116,619
0
0
1
360,550
$6.85
2012 3q
356
22,245,032
1,928,735
8.7%
318,375
0
0
0
0
$6.82
2012 2q
357
22,590,032
2,592,110
11.5%
69,896
0
0
0
0
$6.42
2012 1q
357
22,590,032
2,662,006
11.8%
(139)
0
0
0
0
$6.39
2011 4q
357
22,590,032
2,661,867
11.8%
(29,198)
0
0
0
0
$6.51
2011 3q
357
22,590,032
2,632,669
11.7%
41,732
0
0
0
0
$6.56
2011 2q
357
22,590,032
2,674,401
11.8%
235,835
0
0
0
0
$6.60
2011 1q
357
22,590,032
2,910,236
12.9%
27,565
0
0
0
0
$6.67
2010 4q
357
22,590,032
2,937,801
13.0%
(94,986)
2
78,240
0
0
$6.69
2010 3q
355
22,511,792
2,764,575
12.3%
96,229
0
0
2
78,240
$6.74
2010 2q
355
22,511,792
2,860,804
12.7%
(46,741)
0
0
2
78,240
$6.75
28
M A N A S S A S / I - 6 6
M A R K E T
Delivered SF
0.500
Absorption SF
Vacancy
12.0%
0.400
10.0%
8.0%
0.200
6.0%
0.100
4.0%
0.000
Percent Vacant
Millions SF
0.300
2.0%
(0.100)
(0.200)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
1.60
$8.60
Sublet SF
$8.55
1.40
$8.50
Dollars/SF/Year
Millions SF
1.20
1.00
0.80
0.60
$8.45
$8.40
$8.35
$8.30
0.40
$8.25
0.20
$8.20
$8.15
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
516
17,085,813
Vacancy
Vacant SF
Vacancy %
1,059,222
6.2%
Net
Absorption
407,946
Delivered Inventory
# Bldgs
Total RBA
1
125,550
UC Inventory
# Bldgs
Total RBA
4
337,934
Quoted
Rates
$8.34
2013 4q
515
16,960,263
1,341,618
7.9%
3,789
0
0
5
463,484
$8.32
2013 3q
515
16,960,263
1,345,407
7.9%
55,092
0
0
1
125,550
$8.31
2013 2q
515
16,960,263
1,400,499
8.3%
123,816
1
5,060
1
125,550
$8.38
2013 1q
514
16,955,203
1,519,255
9.0%
214,250
1
117,600
1
5,060
$8.53
2012 4q
513
16,837,603
1,615,905
9.6%
20,797
1
49,600
2
122,660
$8.60
2012 3q
512
16,788,003
1,587,102
9.5%
(10,066)
0
0
2
167,200
$8.71
2012 2q
512
16,788,003
1,577,036
9.4%
(143,950)
0
0
2
167,200
$8.70
2012 1q
512
16,788,003
1,433,086
8.5%
219,263
0
0
1
49,600
$8.65
2011 4q
512
16,788,003
1,652,349
9.8%
147,601
0
0
0
0
$9.07
2011 3q
512
16,788,003
1,799,950
10.7%
0
0
0
0
$8.86
2011 2q
512
16,788,003
1,799,106
10.7%
129,852
1
124,800
0
0
$8.88
2011 1q
511
16,663,203
1,804,158
10.8%
59,043
0
0
1
124,800
$8.57
2010 4q
511
16,663,203
1,863,201
11.2%
19,086
0
0
1
124,800
$8.56
2010 3q
511
16,663,203
1,882,287
11.3%
314,124
1
23,400
1
124,800
$8.68
2010 2q
510
16,639,803
2,173,011
13.1%
30,418
0
0
1
23,400
$8.77
(844)
29
N O R T H
L O U D O U N
M A R K E T
Delivered SF
0.150
Absorption SF
Vacancy
25.0%
0.100
20.0%
15.0%
0.000
(0.050)
10.0%
Percent Vacant
Millions SF
0.050
(0.100)
5.0%
(0.150)
(0.200)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.25
$13.40
Sublet SF
$13.20
$13.00
$12.80
Dollars/SF/Year
Millions SF
0.20
0.15
0.10
$12.60
$12.40
$12.20
$12.00
$11.80
0.05
$11.60
$11.40
$11.20
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
26
855,693
Vacancy
Vacant SF
Vacancy %
54,324
6.3%
Net
Absorption
132,044
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$12.00
2013 4q
26
855,693
186,368
21.8%
0
0
0
0
0
$12.00
2013 3q
26
855,693
186,368
21.8%
0
0
0
0
0
$12.99
2013 2q
26
855,693
186,368
21.8%
10,615
0
0
0
0
$13.11
2013 1q
26
855,693
196,983
23.0%
0
0
0
0
$13.24
2012 4q
26
855,693
196,822
23.0%
1,500
0
0
0
0
$12.82
2012 3q
26
855,693
198,322
23.2%
0
0
0
0
0
$12.23
2012 2q
26
855,693
198,322
23.2%
(2,259)
0
0
0
0
$12.23
2012 1q
26
855,693
196,063
22.9%
(2,400)
0
0
0
0
$13.94
2011 4q
26
855,693
193,663
22.6%
9,413
0
0
0
0
$14.23
2011 3q
26
855,693
203,076
23.7%
0
0
0
0
$13.11
2011 2q
26
855,693
65,949
7.7%
4,250
0
0
0
0
$13.16
2011 1q
26
855,693
70,199
8.2%
16,291
0
0
0
0
$13.17
2010 4q
26
855,693
86,490
10.1%
1,455
0
0
0
0
$12.04
2010 3q
26
855,693
87,945
10.3%
(11,795)
0
0
0
0
$14.51
2010 2q
26
855,693
76,150
8.9%
(10,693)
0
0
0
0
$13.25
(161)
(137,127)
30
N O R T H
P G
C O U N T Y
M A R K E T
Delivered SF
0.200
Absorption SF
Vacancy
16.0%
14.0%
0.150
12.0%
10.0%
0.050
8.0%
0.000
6.0%
(0.050)
Percent Vacant
Millions SF
0.100
4.0%
(0.100)
2.0%
(0.150)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
2.00
$8.35
Sublet SF
$8.30
1.80
$8.25
1.60
Dollars/SF/Year
Millions SF
1.40
1.20
1.00
0.80
$8.20
$8.15
$8.10
$8.05
0.60
$8.00
0.40
$7.95
0.20
$7.90
$7.85
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
382
13,694,130
Vacancy
Vacant SF
Vacancy %
1,526,714
11.1%
Net
Absorption
116,841
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$8.03
2013 4q
382
13,694,130
1,643,555
12.0%
178,938
1
58,994
0
0
$8.24
2013 3q
381
13,635,136
1,763,499
12.9%
(28,723)
0
0
1
58,994
$8.24
2013 2q
381
13,635,136
1,734,776
12.7%
(119,505)
0
0
1
58,994
$8.29
2013 1q
381
13,635,136
1,615,271
11.8%
15,368
0
0
0
0
$8.32
2012 4q
381
13,635,136
1,630,639
12.0%
19,912
0
0
0
0
$8.23
2012 3q
381
13,635,136
1,650,551
12.1%
(47,808)
0
0
0
0
$8.52
2012 2q
381
13,635,136
1,602,743
11.8%
79,809
0
0
0
0
$8.48
2012 1q
381
13,635,136
1,682,552
12.3%
93,012
0
0
0
0
$8.40
2011 4q
381
13,635,136
1,775,564
13.0%
44,448
0
0
0
0
$8.58
2011 3q
381
13,635,136
1,820,012
13.3%
(5,707)
0
0
0
0
$8.46
2011 2q
381
13,635,136
1,814,305
13.3%
19,011
0
0
0
0
$8.47
2011 1q
381
13,635,136
1,833,316
13.4%
(12,146)
0
0
0
0
$8.73
2010 4q
381
13,635,136
1,821,170
13.4%
53,709
0
0
0
0
$9.32
2010 3q
381
13,635,136
1,874,879
13.8%
(60,160)
0
0
0
0
$9.29
2010 2q
381
13,635,136
1,814,719
13.3%
144,331
0
0
0
0
$9.24
31
P G
B E LT W A Y
S O U T H
M A R K E T
Delivered SF
0.250
Absorption SF
Vacancy
14.0%
0.200
12.0%
0.150
10.0%
0.050
8.0%
0.000
(0.050)
6.0%
(0.100)
Percent Vacant
Millions SF
0.100
4.0%
(0.150)
(0.200)
2.0%
(0.250)
(0.300)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
1.60
$7.10
Sublet SF
$7.00
1.40
$6.90
Dollars/SF/Year
Millions SF
1.20
1.00
0.80
0.60
$6.80
$6.70
$6.60
$6.50
0.40
$6.40
0.20
$6.30
$6.20
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
494
13,013,328
Vacancy
Vacant SF
Vacancy %
1,345,324
10.3%
Net
Absorption
(245,495)
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
2
263,082
Quoted
Rates
$6.51
2013 4q
494
13,013,328
1,099,829
8.5%
174,359
0
0
0
0
$7.03
2013 3q
494
13,013,328
1,274,188
9.8%
35,061
0
0
0
0
$7.05
2013 2q
494
13,013,328
1,309,249
10.1%
41,752
3
68,063
0
0
$6.63
2013 1q
491
12,945,265
1,282,938
9.9%
(6,973)
2
184,156
3
68,063
$6.61
2012 4q
489
12,761,109
1,091,809
8.6%
177,162
0
0
5
252,219
$6.81
2012 3q
489
12,761,109
1,268,971
9.9%
20,866
0
0
5
252,219
$7.03
2012 2q
489
12,761,109
1,289,837
10.1%
72,243
0
0
5
252,219
$6.87
2012 1q
489
12,761,109
1,362,080
10.7%
152,450
1
69,567
3
157,693
$6.91
2011 4q
488
12,691,542
1,444,963
11.4%
16,098
0
0
2
161,723
$6.84
2011 3q
488
12,691,542
1,461,061
11.5%
(31,256)
0
0
2
161,723
$7.01
2011 2q
488
12,691,542
1,429,805
11.3%
(244,279)
0
0
0
0
$7.06
2011 1q
488
12,691,542
1,185,526
9.3%
149,382
0
0
0
0
$6.85
2010 4q
488
12,691,542
1,334,908
10.5%
141,069
0
0
0
0
$6.90
2010 3q
488
12,691,542
1,475,977
11.6%
(79,138)
0
0
0
0
$6.91
2010 2q
488
12,691,542
1,396,839
11.0%
25,182
0
0
0
0
$6.71
32
S E
P G
C O U N T Y
M A R K E T
Delivered SF
0.030
Absorption SF
Vacancy
8.0%
7.0%
0.020
6.0%
5.0%
0.000
4.0%
(0.010)
3.0%
(0.020)
Percent Vacant
Millions SF
0.010
2.0%
(0.030)
1.0%
(0.040)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
$7.80
Sublet SF
0.14
$7.60
0.12
$7.40
Dollars/SF/Year
Millions SF
0.16
0.10
0.08
0.06
0.04
$7.00
$6.80
$6.60
0.02
$6.40
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$7.20
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
57
2,096,640
Vacancy
Vacant SF
Vacancy %
140,346
6.7%
Net
Absorption
5,780
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$6.94
2013 4q
57
2,096,640
146,126
7.0%
(1,150)
0
0
0
0
$6.94
2013 3q
57
2,096,640
144,976
6.9%
(30,780)
0
0
0
0
$6.87
2013 2q
57
2,096,640
114,196
5.4%
14,604
1
24,000
0
0
$7.47
2013 1q
56
2,072,640
104,800
5.1%
(10,000)
0
0
1
24,000
$7.57
2012 4q
56
2,072,640
94,800
4.6%
(12,700)
0
0
1
24,000
$7.39
2012 3q
56
2,072,640
82,100
4.0%
(7,600)
0
0
1
24,000
$7.39
2012 2q
56
2,072,640
74,500
3.6%
12,500
0
0
1
24,000
$7.44
2012 1q
56
2,072,640
87,000
4.2%
300
0
0
1
24,000
$7.40
2011 4q
56
2,072,640
87,300
4.2%
3,600
0
0
1
24,000
$7.40
2011 3q
56
2,072,640
90,900
4.4%
1,140
0
0
1
24,000
$7.42
2011 2q
56
2,072,640
92,040
4.4%
3,025
0
0
1
24,000
$7.42
2011 1q
56
2,072,640
95,065
4.6%
21,280
0
0
1
24,000
$7.40
2010 4q
56
2,072,640
116,345
5.6%
1,800
0
0
1
24,000
$7.48
2010 3q
56
2,072,640
118,145
5.7%
18,500
0
0
1
24,000
$5.59
2010 2q
56
2,072,640
136,645
6.6%
14,960
0
0
1
24,000
$5.60
33
S P R I N G F I E L D / N E W I N G T O N
M A R K E T
Delivered SF
0.500
Absorption SF
Vacancy
14.0%
0.400
12.0%
0.300
10.0%
Millions SF
0.100
8.0%
0.000
6.0%
(0.100)
(0.200)
Percent Vacant
0.200
4.0%
(0.300)
2.0%
(0.400)
(0.500)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
2.75
$12.10
Sublet SF
$12.00
2.70
$11.90
2.65
Dollars/SF/Year
Millions SF
2.60
2.55
2.50
2.45
$11.80
$11.70
$11.60
$11.50
2.40
$11.40
2.35
$11.30
2.30
$11.20
$11.10
2.25
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
457
21,053,248
Vacancy
Vacant SF
Vacancy %
2,634,985
12.5%
Net
Absorption
60,365
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
1
3,108
Quoted
Rates
$11.43
2013 4q
457
21,053,248
2,695,350
12.8%
(115,094)
0
0
1
3,108
$11.99
2013 3q
457
21,053,248
2,580,256
12.3%
50,669
0
0
1
3,108
$11.86
2013 2q
457
21,053,248
2,630,925
12.5%
42,139
0
0
0
0
$11.95
2013 1q
457
21,053,248
2,673,064
12.7%
168,907
1
112,500
0
0
$11.59
2012 4q
456
20,940,748
2,729,471
13.0%
(25,466)
0
0
1
112,500
$11.57
2012 3q
456
20,940,748
2,704,005
12.9%
(31,724)
0
0
1
112,500
$11.38
2012 2q
456
20,940,748
2,672,281
12.8%
(411,785)
1
36,116
0
0
$11.57
2012 1q
455
20,904,632
2,224,380
10.6%
52,158
0
0
1
36,116
$12.36
2011 4q
455
20,904,632
2,276,538
10.9%
(36,207)
0
0
1
36,116
$12.84
2011 3q
455
20,904,632
2,240,331
10.7%
370,660
1
82,293
0
0
$12.70
2011 2q
454
20,822,339
2,528,698
12.1%
150,918
1
54,721
1
82,293
$12.70
2011 1q
453
20,767,618
2,624,895
12.6%
(191,442)
0
0
2
137,014
$12.48
2010 4q
453
20,767,618
2,433,453
11.7%
(165,022)
1
71,510
2
137,014
$12.67
2010 3q
452
20,696,108
2,196,921
10.6%
(233,082)
0
0
2
126,231
$11.06
2010 2q
452
20,696,108
1,963,839
9.5%
(30,101)
1
111,095
2
126,231
$11.10
34
W I N C H E S T E R
C I T Y
M A R K E T
Delivered SF
0.150
Absorption SF
Vacancy
16.0%
0.100
14.0%
12.0%
0.000
10.0%
(0.050)
8.0%
(0.100)
6.0%
(0.150)
Percent Vacant
Millions SF
0.050
4.0%
(0.200)
2.0%
(0.250)
(0.300)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.53
$10.00
Sublet SF
$9.00
0.51
$8.00
0.50
$7.00
Dollars/SF/Year
Millions SF
0.52
0.49
0.48
0.47
0.46
0.45
$5.00
$4.00
$3.00
$2.00
0.44
$1.00
0.43
$0.00
0.42
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
$6.00
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
53
3,629,327
Vacancy
Vacant SF
Vacancy %
454,230
12.5%
Net
Absorption
3,600
Delivered Inventory
# Bldgs
Total RBA
0
0
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$9.14
2013 4q
53
3,629,327
457,830
12.6%
11,063
0
0
0
0
$4.20
2013 3q
53
3,629,327
468,893
12.9%
(9,643)
0
0
0
0
$4.37
2013 2q
53
3,629,327
459,250
12.7%
57,886
0
0
0
0
$4.31
2013 1q
53
3,629,327
517,136
14.2%
11,009
0
0
0
0
$4.40
2012 4q
53
3,629,327
528,145
14.6%
3,550
0
0
0
0
$4.27
2012 3q
53
3,629,327
531,695
14.6%
(40,004)
0
0
0
0
$4.31
2012 2q
53
3,629,327
491,691
13.5%
(251,570)
0
0
0
0
$5.22
2012 1q
53
3,629,327
240,121
6.6%
600
0
0
0
0
$5.03
2011 4q
53
3,629,327
240,721
6.6%
15,800
0
0
0
0
$5.07
2011 3q
53
3,629,327
256,521
7.1%
(1,010)
0
0
0
0
$5.09
2011 2q
53
3,629,327
255,511
7.0%
4,970
0
0
0
0
$5.02
2011 1q
53
3,629,327
260,481
7.2%
118,414
0
0
0
0
$5.01
2010 4q
53
3,629,327
378,895
10.4%
(8,625)
0
0
0
0
$5.03
2010 3q
53
3,629,327
370,270
10.2%
4,200
0
0
0
0
$4.93
2010 2q
53
3,629,327
374,470
10.3%
(27,082)
0
0
0
0
$5.05
35
W O O D B R I D G E
M A R K E T
Delivered SF
0.150
Absorption SF
Vacancy
16.0%
14.0%
0.100
12.0%
10.0%
0.000
8.0%
(0.050)
6.0%
(0.100)
Percent Vacant
Millions SF
0.050
4.0%
(0.150)
2.0%
(0.200)
0.0%
2011 1q
2011 2q
2011 3q
2011 4q
2012 1q
2012 2q
2012 3q
2012 4q
2013 1q
2013 2q
2013 3q
2013 4q
2014 1q
Vacant Space
Quoted Rental Rates
Direct SF
0.70
$10.60
Sublet SF
$10.40
0.60
$10.20
Dollars/SF/Year
Millions SF
0.50
0.40
0.30
$10.00
$9.80
$9.60
0.20
$9.40
0.10
$9.20
$9.00
0.00
2013 1q
2013 2q
2013 3q
2013 4q
2013 1q
2014 1q
Period
2014 1q
2013 2q
2013 3q
2013 4q
2014 1q
Existing Inventory
# Bldgs
Total RBA
141
4,133,365
Vacancy
Vacant SF
Vacancy %
625,877
15.1%
Net
Absorption
(22,669)
Delivered Inventory
# Bldgs
Total RBA
1
123,068
UC Inventory
# Bldgs
Total RBA
0
0
Quoted
Rates
$9.58
2013 4q
140
4,010,297
480,140
12.0%
749
0
0
1
123,068
$10.00
2013 3q
140
4,010,297
480,889
12.0%
2,064
0
0
1
123,068
$10.44
2013 2q
140
4,010,297
482,953
12.0%
25,204
0
0
1
123,068
$9.86
2013 1q
140
4,010,297
508,157
12.7%
4,608
0
0
1
123,068
$10.25
2012 4q
140
4,010,297
512,765
12.8%
(180,544)
0
0
1
123,068
$10.48
2012 3q
140
4,010,297
332,221
8.3%
32,336
1
32,725
1
123,068
$10.69
2012 2q
139
3,977,572
331,832
8.3%
393
0
0
1
32,725
$10.66
2012 1q
139
3,977,572
332,225
8.4%
13,750
0
0
1
32,725
$10.84
2011 4q
139
3,977,572
345,975
8.7%
(4,304)
0
0
1
32,725
$10.50
2011 3q
139
3,977,572
341,671
8.6%
(8,748)
0
0
1
32,725
$10.59
2011 2q
139
3,977,572
332,923
8.4%
(77,216)
0
0
1
32,725
$11.08
2011 1q
139
3,977,572
255,707
6.4%
(28,652)
0
0
0
0
$10.66
2010 4q
139
3,977,572
227,055
5.7%
36,722
0
0
0
0
$10.26
2010 3q
139
3,977,572
263,777
6.6%
1,713
0
0
0
0
$10.20
2010 2q
139
3,977,572
265,490
6.7%
(6,528)
0
0
0
0
$10.48
36
MARYLAND OFFICE CORPORATE HEADQUARTERS
656 Quince Orchard Road, Suite 700
Gaithersburg, Maryland 20878
Phone: 301-222-0200
VIRGINIA OFFICE
8618 Westwood Center Drive, Suite 405
Vienna, Virginia 22182
Phone: 703-334-5600
w w w.edgecre.com

First Quarter Office Report - EDGE Commercial Real Estate

Transcription

Similar documents

CoStar Office Report

CAN Company