Mid-Atlantic Research Reflections 2022 - Federal Government

The Federal Government remains a major driver of employment and economic activity across the National Capital Region, comprising 11.5% of total employment. With more than 90 million sq. ft. of owned and leased properties, GSA remains at the centerstage of the region’s real estate landscape. GSA has leased 4.1 million sq. ft. of office space across the region so far in 2022—more than any other industry sector—and is on pace to surpass 2021 leasing levels.

In the largest lease of the year, GSA renewed 1.6 million sq. ft. of space at 600 Dulany Street in Alexandria on behalf of the U.S. Patent and Trademark Office. The 1.6 million sq. ft. deal remains the largest single lease in the national GSA leased inventory, despite representing a 37% contraction for the tenant. The agency will return approximately 954,000 sq. ft. to the market when its original lease expires in 2024. In line with historical averages, federal government leasing in 2022 was mostly characterized by renewals and extensions, which constituted 16 of the 18 (89%) leases sized 10,000 sq. ft. or larger.