Rent growth continues for Class B product in the District, which once again outperformed Northern Virginia and Suburban Maryland over the past 12 months. Suburban Maryland (3.7%) slightly trailed Northern Virginia (4.1%), while the District recorded the largest year-over-year gains at 7.4%. Over the past five years, all sub-states have posted average annual rent growth at or below inflation. Suburban Maryland recorded the highest five-year annual average at 2.3%, while the District and Northern Virginia had 1.7% and 2.1% growth, respectively. Vacancy rates in Suburban Maryland decreased 210 basis points from a year prior. The District and Northern Virginia also posted strong vacancy reductions at 40 and 50 basis points, respectively. Metro-wide class B rents increased 4.3% from 2018.

• Suburban Maryland up 3.7%
• Northern Virginia up 4.1%
• District up 7.4%
• Metro-wide low-rise up 3.6%
• Metro-wide high-rise up 5.1%

Class B year-over-year rent growth (4.3%) outpaced Class A (2.6%), while vacancy in Class B buildings (2.8%) dipped 180 basis points lower than Class A (4.6%) in fourth quarter 2019. While rents continue to increase, vacancy rates are once again declining. Several contributing factors will continue to impact vacancy and rents in the coming year.

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