Flight to Quality in the D.C. Metro Region

More than two years after the start of a global pandemic, the role of the office continues to evolve as landlords and occupiers alike have placed an increased focus on flexible office space, superior amenities, and sustainable building features. Although some level of hybrid work remains favorable among workers, CBRE’s Spring 2022 U.S. Office Occupier Sentiment Survey of corporate leaders and executives found that 85% of respondents want employees in the office at least half the time. To maximize the value of their real estate footprints and give employees a compelling reason to make the commute to work in-person, many occupiers are upgrading their space.

In this study, CBRE Mid-Atlantic Research analyzes flight to quality trends by large private-sector tenants in the Washington, D.C. metro region. Occupiers demonstrated a clear preference for quality office space, opting to relocate into upgraded space despite higher rental rates. While flight to quality was well underway before 2020, the COVID-19 pandemic has increased pressure on company decision-makers to reevaluate their corporate real estate strategies moving forward.