The Washington D.C. office market experienced strong leasing activity from law firms, which comprised 40% of total leasing in Q1, according to data from Cushman & Wakefield, with 227,000 square feet of new leasing and 224,000 square feet of renewals.  

C&W finds that Class A space saw positive absorption of 124,000 square feet, with the East End leading with 194,000 square feet and new moves coming from Boston Consulting, Industrious, Apple, National Women’s Law Center, and CSBS.  

Rents in D.C. decreased by 1.5% year-over-year, while concession packages remained elevated with $175 in TIs and 20 plus free months for large leases over 20,000 square feet. Leasing over 20,000 square feet accounted for only 17% of overall leasing in Q1, with 640,000 square feet signed compared to 19,000 square feet in Q1 2022. However, this was up from the 420,000 square feet reported in Q4 2022, according to data from the report.