Jones Lang LaSalle Reports Slow Office Leasing in Metro Washington, D.C. Markets

10.1 million s.f. were under construction at quarter’s end with 76 percent of that space available for lease

The Washington, DC office market consists of nine submarkets including Capitol Hill, the Central Business District, East End, Georgetown, NoMa, Southeast, Southwest, Uptown and the West End.

(The nation's Capitol, top right photo)

WASHINGTON, DC--The combination of a summer slowdown, uncertainties regarding the next administration and national economy and unstable credit markets produced slow leasing and sales velocity throughout Washington, DC’s nine submarkets in the third quarter of 2008, according to Jones Lang LaSalle.

Renewals represented the majority of leasing activity with the federal government, for the first time in several years, accounting for the vast majority of the occupancy gains / expansions posted during the quarter.

Looking ahead, options for tenants will continue to increase through the fourth quarter of 2008 and into 2009 as 10.1 million s.f. were under construction at quarter’s end with 76 percent of that space available for lease.

(Federal Reserve Bank building, middle left photo)

With vacancy levels continuing to increase, rent growth will remain curbed, with rent decreases likely to continue in the outlying markets of Southeast, NoMa and Southwest and certain parts of the outer-core CBD and East End Commodity A markets.

For a detailed copy of the Jones Lang LaSalle report, please contact:

Dave Bevirt, (bottom left photo) Managing Director, Agency Leasing

Greg Lubar, (middle right photo) Managing Director, Tenant Representation

John Sikaitis, Senior Vice President, Communications, john.sikaitis@am.jll.com