• BAE Systems and two GSA agencies returned a combined 160,000 sq. ft. to the market in Q4 2018, leading to a 10-bps increase in the overall vacancy rate over the previous quarter.
  • The life sciences industry has been 2018’s most significant driver of growth, contributing three leases each over 100,000 sq. ft. and a combined 216,000 sq. ft. of positive absorption. By contrast, the business services sector and the GSA together posted 227,500 sq. ft. of occupancy loss.
  • Both build-to-suit and speculative construction remains robust with 2.4 million sq. ft. under construction, the market’s highest level since CBRE began tracking. New Trophy development in Bethesda has attracted several high-profile users, such as Host Hotels & Resorts, Booz Allen Hamilton and Orano.