Dulles Corridor Office Q2 2019

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Route 28 North Submarket (Dulles/Sterling)

  • RBA: 10,345,907 SF
  • Vacancy Rate: 15.8%
  • 12 Month Net Absorption: (1,700 SF)
  • Average Asking Rent: $26.59
  • 12 Month Rent Growth: 2.4%

The Route 28 North submarket is better known as an industrial submarket. Limited demand for office space here has kept vacancies around 15-17% for the past 2 years; however, positive net absorption coupled with no new deliveries should continue to compress vacancy rates. Despite relatively high vacancy, this submarket has seen rent growth of over 2% for the past 2 years, which ranks it among the highest in the DC metro area. Still, asking rents are affordable when compared to neighboring submarkets. It will be interesting to see the impact of the completion of the Silver Line whose last 3 stops are located in the Route 28 North submarket. If new deliveries do not outpace increased demand we should expect to see further compression a vacancy rates with rent growth keeping pace.

Route 28 South Submarket (Chantilly/Centreville)

  • RBA: 14,342,299 SF
  • Vacancy Rate: 14.8%
  • 12 Month Net Absorption: 363,000 SF
  • Average Asking Rent: $28.20
  • 12 Month Rent Growth: 2.2%

Route 7 Submarket (Ashburn)

  • RBA: 4,738,247 SF
  • Vacancy Rate: 7.5%
  • 12 Month Net Absorption: 2,500 SF
  • Average Asking Rent: $27.65
  • 12 Month Rent Growth: 1.0%

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