Mid-Atlantic Research Reflections 2024: Technology

The Washington, D.C. metro region is the fifth largest tech talent market in the U.S. and the technology industry remains one of the largest drivers of office market fundamentals across the region. Year-to-date, technology companies have leased 2.2 million sq. ft., accounting for 16% of all activity in the region. In keeping with historic trends, activity is concentrated in Northern Virginia where tenants leased 1.7 million sq. ft. through November. Leasing was dominated by renewals, six of which were larger than 100,000 sq. ft.

Technology tenants increased their overall office footprint in Northern Virginia through the third quarter, with 62,000 sq. ft. of positive absorption, a significant improvement from the 526,000 sq. ft. of negative absorption recorded in 2023. In contrast, technology tenants posted negative absorption in both Washington, D.C. and Suburban Maryland through Q3 2024.

Since the onset of the pandemic, technology tenants have been very active on the sublease market. Currently, 45 technology tenants are listing blocks larger than 10,000 sq. ft. for a total of 1.5 million sq. ft. across the metro region. Notably, there are two tenants listing over 100,000 sq. ft., with Meta and Leidos each listing 122,000 sq. ft. at two separate locations, in the East End and North Rockville, respectively.