Washington Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $52.54 2023 Avg. Asking Rent
  • -0.80% Y-o-Y Avg. Asking Rent Change
  • 21.52% 2023 Office Vacancy Rate
  • $898.5M2023 Total Office Sales
  • $383.93Avg. Sale Price/SF

Washington office price per square foot in 2023 was $52.54 on average. This marked a -0.80% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 21.52% across all asset classes combined. The 12 transactions that closed here throughout 2023 amounted to a total sale volume of $898.5M. Washington office space commanded an average sale price per square foot of $383.93.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Washington Class A & A+ Office Space$55.06
  • Washington Class B Office Space$48.34
  • Washington Class C Office Space$37.57
  • District of Columbia Class A & A+ Office Space$55.06
  • District of Columbia Class B Office Space$48.34
  • District of Columbia Class C Office Space$52.54

Washington, DC Office Asking Rents by Class

Average office rent in Washington rested at $52.54 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Washington averaged $55.06 per square foot. Across all submarkets, class B office space recorded an average asking rent of $48.34 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $37.57 per square foot, on average. Comparably, statewide District of Columbia average office rents by class in 2023 were: $55.06 per square foot for class A office space; $48.34 per square foot for class B office space; $52.54 per square foot for class C office space.

2023 Office Vacancy Rates in Washington

Submarket Asking Rents Vacancy Rates
Seventh Street Corridor $59.71 22.03%
NoMa $56.55 13.72%
East End $56.04 24.00%
Washington DC CBD $53.03 25.85%
Capitol Hill $51.91 17.45%
Southwest DC $49.71 18.35%
Capitol Riverfront $49.61 21.52%
West End $49.43 14.88%
Chevy Chase $47.60 27.35%
Northwest DC $45.22 21.49%
Embassy Row $45.10 11.16%
Southeast DC $44.93 6.34%
Georgetown $42.06 19.50%
Northeast DC $32.67 10.13%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Washington market was 21.52% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Washington was 6.34% in the Southeast DC submarket, while the highest office vacancy in the market was 27.35%, recorded in Chevy Chase.

Office Spaces for Rent in District of Columbia

Washington Office Sale Price per SF

  • $383.932023 Avg. Price per SF
  • -7.01%Y-o-Y Avg. PpSF Change
  • $898.5M2023 Office Sales Volume
  • 122023 Number of Transactions

Washington, DC Sale Price per SF Trend

  • Washington Avg. Sale Price per SF in 2023$383.93
  • District of Columbia Avg. Sale Price per SF in 2023$383.93
Washington office space cost in 2023 marked a -7.01% change compared to the previous year. The sale price for office space in Washington averaged $383.93 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide District of Columbia average office sale price during the same time period was $383.93 per square foot.

2023 Office Sales Volume

  • Washington, DC Total Office Sales Volume in 2023 $898.5M
  • Washington, DC Total Number of Office Sales Closed in 2023 12
A total of 12 deals closed on the Washington office market in 2023, adding up to a yearly sales volume of $898.5M. Notably, the largest transaction on the market saw Metropolitan Square change hands for $305,000,000 on 10/3/2023.

Largest Washington Office Sales in 2023

Property name Address Date Price
Metropolitan Square 655 15th Street NW 10/3/2023 $305,000,000
Station Place III 700 2nd Street NE 11/15/2023 $197,750,000
2021 K Street NW 2021 K Street NW 1/9/2023 $78,250,000
2100 M Street NW 2100 M Street NW 5/10/2023 $66,765,870
1050 17th Street NW 1050 17th Street NW 3/31/2023 $59,812,500
Data provided by Commercial Edge

Coworking Spaces in District of Columbia

2023 Office Construction in Washington, DC

  • Washington, DC Total SF completed in 2023 605,015
  • Washington, DC Total SF under construction in 2024 720,000

During 2023, 605,015 square feet of new office space were delivered across the market. At the close of 2023, the Washington office inventory included 4 buildings equal to or larger than 25,000 square feet, which comprised 605,015 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 720,000 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Washington
Office building Address SF Completed
The Campbell Building 1401 Massachusetts Avenue NW, 20005 52,000 2024
20 Mass 20 Massachusetts Avenue NW, 20001 421,691 2023
1530 1st St SW 1530 1st St SW, 20024 8,500 2023
Chemonics HQ 1275 New Jersey Ave SE, 20003 315,000 2021
Signal House 350 Morse Street NE, 20002 214,501 2021
The Bank Building 699 14th Street, NW, 20005 164,000 2021
6100 Chillum Pl NE 6100 Chillum Pl NE, 20011 10,000 2021
Capitol Crossing - 250 Massachusetts 250 Massachusetts Avenue NW, 20001 548,842 2020
1050 17th Street NW 1050 17th Street NW, 20036 155,901 2020
1201 New York Ave 1201 New York Avenue NW, 20005 444,442 2019

Worth noting among recent office completions on the Washington market is The Campbell Building, which is currently the largest new office development in the city, at 52,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Washington commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.