Report | Intelligent Investment

Flight to Quality in Northern Virginia

Strength and Opportunity in Today’s Office Market

September 12, 2023 15 Minute Read

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In a soft market with overall rising vacancy and muted demand, two segments buck the trend:

  • Trophy buildings are the highest quality buildings in Northern Virginia, consistently achieving rents in the top 10% of their submarket. They are predominantly new construction, and have the highest quality and quantity of building amenities.
  • Class A+ achieve rents in the top 15% of buildings in their submarket, and include a successful suite of building amenities. Buildings in this set are typically earlier generation buildings that underwent extensive recent renovations.

These properties perform very differently from the rest of the market, capturing a disproportionate share of demand, seeing a lower vacancy rate, and garnering higher rental rates.