Key Highlights:
- Overall Direct Vacancy Ticks Higher
Direct vacancy in Washington, D.C. increased modestly, ticking up 40 basis points in Q4, ending the year at 19.9%. - Trophy and Class AA Assets Continue to Outperform Other Classes
The top two asset classes recorded a combined vacancy rate of 15% in Q4, 490 basis points below the overall market average, reinforcing the continued flight-to-quality trend. - Trophy Absorption Remains Resilient
Despite negative absorption overall, trophy assets posted another positive quarter, ending the year with over 450,000 SF of positive absorption. - Capital Markets Show Early Recovery
Investment sales activity gained modest traction, with increased transaction volume for well-located assets.