Mid-Atlantic Research Reflections 2022 - Technology

The technology sector has propelled occupancy gains in the D.C. metro office market, while other industries have recorded losses in the face of increased hybrid-return-to-office policies. Tech tenants have contributed 489,000 sq. ft. of occupancy gain across the region since January 2021, leading all industry sectors in net absorption.

The first half of 2022 was defined by widespread tech expansions, with tech tenants contributing a combined 170,000 sq. ft. of positive absorption year-to-date. Notable expansions include Federated Wireless’ new headquarters lease in National Landing and Robinhood’s first leased office space in the region at Capitol Crossing in Washington, D.C. Despite this growth, many tech tenants have pressed pause on additional requirements, with growing economic volatility. As many tech firms brace for headwinds, the market could record a continued slowdown in activity.