Changing Workforce Impacting Suburban Office Parks
A large portion of the 71.5M SF of vacant office space in the DC region resides in office parks. And another 1M SF will enter the market over the next several years as Marriott International exits its office park in Bethesda. Washington was once a veritable hub of office parks, which have become virtual ghost towns, the Washington Post reports. These days more people are telecommuting and the younger generation prefers more of an urban setting with a wealth of amenities. Government shrinkage has also contributed. The US government hasn’t signed any major leases this year and federal agencies have been instructed by the Office of Management and Budget to reduce their footprint. On a positive note, JLL reports that commercial leasing in the Washington area was up 16% in Q2, notably in midsized buildings that are attracting startups and nonprofits. [WaPo]
