Mid Atlantic Research Reflections 2023 Nonprofits

With more than 55,000 registered organizations across Greater Washington, the nonprofit sector is a crucial part of the regional economy. Nonprofit employment accounts for 25% of total private employment in the District, more than any other state, per the most recent data available. This presence is reflected in the Mid-Atlantic office market, where nearly 1.1 million sq. ft. of office space was leased by nonprofit tenants in 2023, accounting for 8.5% of total leasing activity across the D.C. metro. Despite its strong foothold in the region, nonprofit leasing continues to record decreased demand for office space, largely because of remote work.

Trade associations and charitable organizations showed greater signs of growth in 2023 than other types of nonprofits, such as social welfare and international organizations. Despite overall occupancy loss by nonprofits across the region, trade associations and charitable organizations posted positive absorption. Together, these two subsectors accounted for 92% of gross nonprofit leasing this year.

Despite muted year-to-date leasing volume for the sector across Greater Washington, nonprofits in the District posted positive absorption for the first time since 2019, one of few industries to display signs of growth this year. Absorption numbers also improved in Suburban Maryland.