Washington, D.C. metro construction pipeline is 42.5 percent preleased
The construction pipeline in the metro Washington, D.C., region of about 2.1 million square feet is 42.5 percent preleased. Several projects are expected to be delivered by the end of the third quarter without substantial preleasing, according to research analysis from Jones Lang LaSalle.
While a lack of government clarity has made some developers cautious about initiating speculative construction projects, a number of new buildings set to come online during the next two quarters present an opportunity for tenants in what JLL says is some of the newest, most efficient, trophy-quality office space in the nation.
“The amount of unleased space set to deliver in this market will give smaller tenants leverage not normally associated with their size,” Michael J. DiRenzo, vice president in JLL’s Washington office, said in a statement. “Particularly since larger users of office space, specifically those who can anchor a new office development, are anticipated to remain on the sidelines for the foreseeable future.”
According to JLL, Washington’s construction pipeline is 47.8 percent preleased while suburban Maryland and Northern Virginia are 66.6 percent and 32.4 percent preleased, respectively.