Metro DC Submarkets with Highest Concentration of GSA Tenancies
In light of the federal government’s push for increased space efficiency, submarkets with heavy exposure to GSA-leased space may see a pullback in tenant demand and softened of market conditions as agencies look to rightsize their office footprints.
This according to Jones Lang LaSalle's Q2 2012 market statistics for Washington, D.C. A breakdown of GSA tenancies in Washington, D.C. markets can be seen by clicking on the Full Screen button at the bottom of the SCRIBD document below these excerpts.
Within the Metro DC region, the submarkets of NoMa, Southwest and Southeast are viewed upon as federal enclaves, with roughly half of their overall tenant base or more concentrated among government users.
Although calls for government austerity may present challenges to long-term growth of the federal government, most areas are well-positioned to preserve their existing federal occupancy and weather the political storm, according to JLL.
GSA averages 32.3 years of total lease term in each building they occupy, and renewals are most often the lowest cost alternative for agencies, presenting some comfort to owners that may fear vacancy exposure due to pending rollovers.
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