The Manassas Submarket is expansive, stretching from Yorkshire down to Marine Corps Base Quantico, but nearly all of the inventory is in the northern portion, near Central Manassas. The submarket has one of the highest proportions of 1 & 2 Star inventory in the metro—this asset class comprises more than half of the office stock in the submarket. Vacancy has been below the metro average since 2011 but started a steep descent in 2014 due to several years of above-average demand. This demand can partially be attributed to low rents—Manassas is one of the most affordable submarkets in the metro, and rents haven’t experienced meaningful growth in years. As a result, rents are still well below the pre-recession peak.
The lack of supply has also played a role in declining vacancies: One, 16,000-SF, build-to-suit office property delivered this year, the first new construction since 2013, and no projects are underway. Sales volume occasionally jumps into double-digit territory, but it’s not uncommon for it to stay below $5 million. Sales were particularly slow in 2016, when just $3.4 million was recorded. At almost $7 million, volume in 2017 was better but still failed to break the $10 million mark. As of mid-October, volume for 2018 was at roughly $6 million.
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