Washington DC November 2020 – Key-Take Aways

• Everyone is waiting and watching to see what changes occur with tax rates.  Many clients are focusing on estate planning and working to get things in place prior to possible legislation with impacts in 2021 or 2022. 
• Bankruptcy work is picking up pace.
• While the I-95 corridor remains challenged, the Dulles corridor couldn’t get any tighter with rates and values thru the roof.  Demand between data centers and distribution centers is pushing parties to look harder at Prince William county with land prices up from $300k/acre to $800k/acre in the last 2 years.
• On the office front, things are slow all around.  New subleases are hitting each day, whereas foreclosures are yet to come.  By year end, 25% of the space on the market will be sublease space.
• Smaller office deals in the 2,000 to 10,000 sf range are getting done.  Small industrial deals are getting done but rates are at all-time highs.
• The GSA is still active in the market and will see 20% of their leases expire in the next few years.  With the office market in distress, there is opportunity for the GSA to secure new spaces in the District at rates below their ceiling of $50/sf.  The GSA continues to focus on consolidation where they can.