flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Office bust hits suburban Washington D.C.: metro area awash in vacant office buildings

Office Buildings

Office bust hits suburban Washington D.C.: metro area awash in vacant office buildings

Most of the building and buying is happening within the city’s limits.


By John Caulfield, Senior Editor | July 23, 2015
Office bust hits suburban Washington D.C.: metro area awash in vacant office buildings

Photo: Carol M. Highsmith

There are 71.5 million sf of vacant office space in the Washington D.C. region. The national real estate brokerage Marcus and Millichap expects one-fifth of metro D.C.’s total office space to be empty by the end of this year. And another 1 million sq of office space could come onto this market over the next several years as businesses vacate older buildings once their leases expire.

The D.C. suburbs are fast becoming the latest American ghost towns, according to the Washington Post, as work styles have changed, preferences have shifted toward walkable commutes, and government—the area’s biggest employer—has shrunk.

The corporate campus is far from dead—just ask Google, Facebook, and other Silicon Valley companies that are building massive new headquarters and reinventing this concept to be transit-oriented and Millennial-friendly.

The D.C. suburbs are fast becoming the latest American ghost towns, as work styles have changed, preferences have shifted toward walkable commutes, and government—the area’s biggest employer—has shrunk.

The U.S. Bureau of the Census’ latest estimate for the value of private office construction put in place was up, year-to-year, 24.6% in May to $55.4 billion. Spending on public office construction in May rose 26.9% to $46.6 billion.

But in certain states, there have been mass evacuations of office spaces. In New Jersey, pharmaceutical firms that once operated sprawling suburban campuses have left millions of square feet of office space, warehouses, and labs deserted.

Empty office buildings have been a fact of life in D.C. and its suburbs for a while. By mid-2014, 11 Montgomery County, Md., office buildings totaling 2.25 million sf stood almost or totally vacant, and another nine, totaling 1.4 million sf, were “almost totally available”.

A portion of vacancies is attributable to federal government cutbacks. The Post reports that government agencies have been evacuating office and warehouse spaces in droves. They vacated 7,315 buildings with 47 million sf of office space in 2014 alone, reports Federal News Radio.

Still, office construction continues in D.C., and some developers and AEC firms view this market’s office space surfeit as an opportunity, although most of the recent activity is occurring within the city’s limits.

Skanska disclosed last week that it is investing $116 million in a new office building in D.C. The giant contractor will develop and build a new 11-story, Class-A office building with ground floor retail and four below-grade parking levels in Washington’s Capitol Riverfront submarket. The total leasable space will be about 22,000 sm (237,000 sf). Construction is scheduled to begin later this summer.

Tishman Speyer recently paid $30.5 million to acquire 2020 M Street N.W., the longtime D.C. bureau of CBS News, which it will redevelop into a modern office, newsroom and studio space for the media giant.

On July 21, Carr Properties, a local owner/operator/developer, acquired Columbia Center, a 393,815-sf, 12-story Class A office building in Washington D.C., for an undisclosed amount. In May, the Post reported that Carr Properties had raised $300 million from Alony Htez Properties and Investments, one of Israel’s largest real estate investment companies, to invest in local office buildings and development projects.

Related Stories

Mixed-Use | Jun 1, 2023

The Moore Building, a 16-story office and retail development, opens in Nashville’s Music Row district

Named after Elvis Presley’s onetime guitarist, The Moore Building, a 16-story office building with ground-floor retail space, has opened in Nashville’s Music Row district. Developed by Portman and Creed Investment Company and designed by Gresham Smith, The Moore Building offers 236,000 sf of office space and 8,500 sf of ground-floor retail. 

Office Buildings | May 24, 2023

The future of work: What to expect in 2023

While no one disagrees that the workplace has undergone tectonic changes, it is less clear how to understand these shifts and synthesize them into practical action for the coming year.

Multifamily Housing | May 23, 2023

One out of three office buildings in largest U.S. cities are suitable for residential conversion

Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.

Headquarters | May 16, 2023

Workplace HQ for party clothing company Shinesty celebrates its bold, whimsical products

The new Denver headquarters for Shinesty, a party clothing company, was designed to match the brand’s fun image with an iconic array of colors, textures, and prints curated by the design agency, Maximalist. Shinesty’s mission, to challenge the world to live more freely and “take itself less seriously,” is embodied throughout the office interior.

Office Buildings | May 15, 2023

Sixteen-story office tower will use 40% less energy than an average NYC office building

This month marks the completion of a new 16-story office tower that is being promoted as New York City’s most sustainable office structure. That boast is backed by an innovative HVAC system that features geothermal wells, dedicated outdoor air system (DOAS) units, radiant heating and cooling, and a sophisticated control system to ensure that the elements work optimally together.

Headquarters | May 15, 2023

The new definition of Class A property

Dan Cheetham, Managing Director and Founder of FYOOG, believes organizations returning to a "hub and spoke" model could have a profound effect on properties once considered Class B.

Headquarters | May 9, 2023

New Wells Fargo development in Texas will be bank’s first net-positive campus

A new Wells Fargo development in the Dallas metroplex will be the national bank’s first net-positive campus, expected to generate more energy than it uses. The 850,000-sf project on 22 acres will generate power from solar panels and provide electric vehicle charging stations.

Digital Twin | May 8, 2023

What AEC professionals should know about digital twins

A growing number of AEC firms and building owners are finding value in implementing digital twins to unify design, construction, and operational data.

Office Buildings | May 5, 2023

9 workplace design trends for 2023

HOK Director of WorkPlace Kay Sargent and Director of Interiors Tom Polucci discuss the trends shaping office design in 2023.

Office Buildings | May 4, 2023

In Southern California, a former industrial zone continues to revitalize with an award-winning office property

In Culver City, Calif., Del Amo Construction, a construction company based in Southern California, has completed the adaptive reuse of 3516 Schaefer St, a new office property. 3516 Schaefer is located in Culver City’s redeveloped Hayden Tract neighborhood, a former industrial zone that has become a technology and corporate hub.

boombox1
boombox2
native1

More In Category



Sustainable Design and Construction

Northglenn, a Denver suburb, opens a net zero, all-electric city hall with a mass timber structure

Northglenn, Colo., a Denver suburb, has opened the new Northglenn City Hall—a net zero, fully electric building with a mass timber structure. The 32,600-sf, $33.7 million building houses 60 city staffers. Designed by Anderson Mason Dale Architects, Northglenn City Hall is set to become the first municipal building in Colorado, and one of the first in the country, to achieve the Core certification: a green building rating system overseen by the International Living Future Institute.


MFPRO+ News

San Francisco unveils guidelines to streamline office-to-residential conversions

The San Francisco Department of Building Inspection announced a series of new building code guidelines clarifying adaptive reuse code provisions and exceptions for converting office-to-residential buildings. Developed in response to the Commercial to Residential Adaptive Reuse program established in July 2023, the guidelines aim to increase the viability of converting underutilized office buildings into housing by reducing regulatory barriers in specific zoning districts downtown. 

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021