Alexandria’s Submarkets Q2 2019

Aerial USA Virginia

Old Town Alexandria

  • RBA: 10,275,321 SF
  • Vacancy Rate: 11.7%
  • 12 Month Net Absorption: (60,500 SF)
  • Average Asking Rent: $33.36
  • 12 Month Rent Growth: 2.5%

As its name denote, Old Town Alexandria is old. Over 77% of its inventory comprised of 1, 2, and 3-Star properties. The effects of the Great Recession coupled with a lack of space has resulted in no new deliveries since 2010. Due to the historic nature of the submarket’s core most new construction has taken place farther west near the King Street Metro station. The good news for the submarket is that this lack of new supply has helped vacancy rates decline since a peak in 2011 and remain well below the metro average.

Old Town has historically suffered from weak demand; resulting in negative net absorption for the past 4 years and anemic rent growth. Rents are now only slightly above prerecession levels and are the lowest of any Virginia submarket with both metro access and proximity to DC. The submarket may be one of the many “boats” lifted by the rising tide of Amazon’s HQ2; however, due to its lack of 4 & 5-Star properties that appeal to the types of companies that would benefit from close proximity to the tech giant, Old Town will most likely continue to lose tenants to surrounding submarkets despite its affordability.

I-395 Corridor

  • RBA: 11,148,336 SF
  • Vacancy Rate: 24.5%
  • 12 Month Net Absorption: 22,700 SF
  • Average Asking Rent: $30.33
  • 12 Month Rent Growth: 3.3%

Eisenhower Ave Corridor

  • RBA: 4,881,426 SF
  • Vacancy Rate: 8.8%
  • 12 Month Net Absorption: 43,000 SF
  • Average Asking Rent: $35.60
  • 12 Month Rent Growth: 3.4%

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