The Bauwo Grundstucks/ Kanada Bau – Elsdorf Bauka Logistics Park Development – Lower Saxony project was the second-largest project with a project value of $130 million, on which construction work started in Q4 2022. The CCP/ VRE – East Side Cubes Office Building – Berlin project is located in Germany and initially announced in Q4 2019 with an estimated completion in Q4 2023. Twenty percent of these buildings are concentrated in NoMa and Southwest, driven by the large number of single-occupant users like the federal government,” Hartnett said.īeing a Class A or trophy building is not the only ticket to a low vacancy rate, with 119 of the buildings with zero vacancy being Class B or Class C buildings, JLL said.With a project value of $235 million, the CCP/ VRE – East Side Cubes Office Building – Berlin project was the largest Office Buildings construction project in Germany on which construction started in Q4 2022. “Government entities occupy many of the fully occupied buildings in D.C., as do many nonprofits and associations, because many of those buildings are single-tenanted. A good share of them are fully occupied by just one tenant. JLL said 23% of D.C.’s office buildings have zero vacancy, and many more have negligible vacancy rates. Those newer or recently renovated, amenity-rich buildings in D.C. And mechanical upgrades, plumbing, reconfigurations, those also pose challenges,” Hartnett said. are mid-block with deep floor plates, and both of those really limit the amount of natural light needed for an apartment. “Many of the older vacant buildings in downtown D.C. buildings are good candidates for apartment or condo conversion. That’s 10% of older buildings in downtown D.C., and 4.6 million square feet of those properties are already in various stages of conversion.īut not all older D.C. The District and developers are actively pursuing office-to-residential conversions of older buildings, and JLL has identified 8.5 million square feet of existing office stock as residential redevelopment targets. As a result, owners of older buildings are left with real critical investment decisions today,” said Michael Hartnett, Mid-Atlantic Research Lead at JLL. “The pandemic has created a bifurcation in the office market of ‘haves and have-nots’ now, so if you’re an owner of an older building, you are facing challenges as tenants flock to new or recently renovated space that offer more in the way of amenities and more of a commute-worthy experience for those employees. Office buildings constructed before 2000 account for 75% of the city’s vacancy, and that is more than double a decade ago.
is concentrated in just 60 buildings, and overwhelmingly older buildings. The office vacancy rate in the District is now a record high 18.9%, but a small share of office buildings account for a substantial portion of empty office space.Ĭommercial real estate firm JLL reports 41% of the office vacancy rate in D.C. Business & Finance Click to expand menu.
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