Arlington Office Market is Prime for Development

Office market demand continues to grow in Northern Virginia with vacancy rates dipping as low as 20.8% during the second quarter of the year. This is the lowest vacancy rate the area seen since 2014.

Low Vacancy Rates in Northern Virginia

All three building classes experienced a decrease in vacancies last quarter, driving up demand for all types of office space in Northern Virginia. Class A office space experienced the fastest rate of absorption this year. As more and more tenants move into nicer office spaces, vacancy rates continue to fall.

Although plans for development are on the horizon, no new development was completed in Northern Virginia during the second quarter.

Office Space in High Demand

As Northern Virginia’s economy grows, the creation of new jobs has declined. Media and telecommunication companies in Northern Virginia cut as many as 770 positions during the second quarter of the year. The loss of jobs in these and other sectors has led to an increase in job growth in other industries that rely on office space for their operations. The professional, business services, financial and government sectors have all experienced marked growth this year.

New office space in all parts of Northern Virginia is being preleased at an alarming rate. In addition to new development, upgrades to existing office space are also in high demand.

New Office Space Development Needed in Arlington, Virginia

Arlington, Virginia is a popular office location for a number of associations, government affair groups, government contractors, consultants and creative firms. Located just a few miles from Washington DC, Arlington provides ample opportunity for businesses of all shapes and sizes.

Recently, development in Arlington has been focused on residential projects. That might change due to the current demand for office space in Northern Virginia. Without adequate available office space, potential new tenants will be forced to look elsewhere for their offices. This could mean a loss of jobs and revenue for the city.

Northpoint Realty Partners provides smart real estate development in Arlington, Virginia. Please contact us for more information about our real estate development services.