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.