CW DC Survey 2Q16 PDF

Market Report
Washington, DC | 2nd Quarter 2016
cushmanwakefield.com
Contents
DC Metropolitan Area Overview..............................................................................3

Washington, DC & Map..........................................................................................4-6
Core (CBD/East End)...............................................................................................7-8
Non-Core...........................................................................................................................9
West End/Georgetown..............................................................................................10
Capitol Hill/NoMa.........................................................................................................11
Southwest/Capitol Riverfront..................................................................................12
Appendix..........................................................................................................................13
Tables..........................................................................................................................13-22
Methodology & Definitions......................................................................................23
About Cushman & Wakefield.................................................................................24
Cushman & Wakefield | 2
Washington, DC Metropolitan Area

WASHINGTON, DC METRO
At mid-year 2016, the Washington, DC metropolitan regions

economy continues to grow at a fast clip. The regions unemployment
rate is among the lowest among major metropolitan areas in the
nation, ending the second quarter of 2016 at 3.8%. Meanwhile, job
growth remains well above the historical annual average of 36,000
jobs. As of June 2016, the Washington, DC Metro economy had
added 75,000 net new nonfarm jobs since June of 2015, the fourth
highest number of new jobs among major markets after the New
York, Los Angeles and Dallas metropolitan regions. The annual
job growth rate of 2.4% (year-over-year) has actually eclipsed job
growth rates in the New York, Chicago and Boston metropolitan
regions. And job growth was well distributed throughout the region,
led by Northern Virginia with nearly 32,000 new jobs, Suburban
Maryland with 22,900, and the District of Columbia with 8,800 jobs.
The balance of the 75,000 jobs were in outlying areas.
Economic Indicators
Breaking down the jobs data by sector, growth in office-using

employment continues to promise increased demand for office
space in the coming quarters for the Washington, DC Metro region.
As it has done during the regional economic recovery from the
negative effects of sequestration starting in early 2015, Professional
and Business Services led the way in job creation with 17,600 new
positions since June of 2015. Perhaps the most encouraging data
comes from the federal government sector, which after losing
nearly 20,000 employees in the Washington, DC region from
2012-2014, has recently ramped up hiring and added over 7,000
positions since the nadir in total federal employment in June 2014.
Such a positive economic backdrop should go far in dispelling
any perceived notions of a slowdown in the local economy due to
uncertainty surrounding the upcoming presidential elections no
evidence supporting this scenario is present in the jobs data.
Under Construction
4.6M
6.8M
Deliveries
303K
764K
$35.91
$36.19
The outlook for the Washington, DC Metro region from an investment

standpoint continues to be bullish. Year-to-date office sales volume
is $2.8 billion, less than volume in the previous two years, but the
reduction in volume is a function of the type of product being
brought to market. While there is plenty of global demand for wellleased, well-located core assets, there is a shortage of supply of
these assets in the sales pipeline, as both offshore and institutional
long-term holders have scooped up such assets with vigor over the
past several years. With more value-add and opportunistic assets
as well as large suburban portfolios hitting the market, average
values should start to slowly come down compared to the previous
two years. With turmoil continuing in the Middle East and much
uncertainty remaining in Europe, the gateway markets in the U.S.
and the relative safety and stability of the Washington, DC Metro
region in particular, will continue to be a go-to location for global
capital hungry for commercial real estate.
2Q 16
DC Metro Employment
3.16M
3.23M
DC Metro Unemployment
4.5%
3.8%
U.S. Unemployment
5.4%
4.9%
2Q 15
2Q 16
Overall Vacancy
18.0%
17.9%
Net Absorption
289K
915k
12-Month
Forecast
Market Indicators
Average Asking Rent (FS)
12-Month
Forecast
Net Absorption/Asking Rent

4Q TRAILING AVERAGE
$39.00
2.0
$38.50
$38.00
$37.50
1.0
$37.00
$36.50
$36.00
0.0
$35.50
$35.00
$34.50
-1.0
2010
2011
2012
2013
Net Absorption, MSF
2014
2015
2016
$34.00
Asking Rent, $ PSF
Washington, DC Metropolitan Area

NET ABSORPTION - DELIVERIES - VACANCY
10.0
20%
8.0
16%
6.0
MSF
This robust job growth bodes well for improved leasing fundamentals
in the coming quarters, but the tightening will continue to be slow in
most asset classes. A significant amount of vacancy still remains to
be absorbed: 53 million square feet (MSF) is currently vacant in the
regions 300 MSF-inventory, which equates to a 17.9% vacancy rate.
Net absorption year to date is 830,000 square feet. Tenants are
largely seeking quality whether that is new construction, renovated
Class A space or the best of the Class B market. Quality space close
to transit and amenities is where the vast majority of the positive net
absorption is taking place. After several years of deliveries below
historical averages, new supply is finally ramping up to meet the
demand for quality space. Currently 6.8 MSF is under construction,
mostly in the District of Columbia and in Northern Virginia.
2Q 15
4.0
12%
2.0
8%
0.0
-2.0
4%
-4.0
-6.0
Vacancy Rate
Strong Economic Growth Continues
05
06 07 08 09
Net Absorption
10 11 12 13 14 15
Deliveries
Vacancy Rate
16
0%
cushmanwakefield.com | 3
Washington, DC
The Washington, DCs labor market added 9,500 new jobs between
January and May 2016, an additional 7,100 new jobs than were added
during the same period in 2015. Within the office-using sectors,
Professional and Business Services led the way, adding 3,300 new
payrolls between January and May 2016 of which, the Legal
Services comprised 2,100 new jobs and the Federal Government
adding 1,100 new jobs in the same time period.
Market Overview
Retrained market trends throughout the second quarter of 2016,
left the Washington, DC market with torpid conditions. Leasing
activity remained tepid, closing nearly 2.0 million square feet
(MSF) of new leases year-to-date, 761,629 square feet (SF) of
which closed during the second quarter 2016. With the lions share
of large law firm lease expirations all but spoken for through 2019,
mid-year 2016 leasing activity declined by 37.5% since second
quarter 2015. DC Government signed the largest new lease of the
quarter, taking 51,299 SF at 955 LEnfant Plaza, SW, followed by
MakeOffices, which signed a 48,880-SF prelease at The Wharfs
800 Maine Avenue, SW.
Despite lackluster second-quarter leasing activity, several large
leases that signed in prior quarters helped fuel positive absorption
for the first half of 2016, as tenants moved into their new space.
Year-to-date, the DC market experienced 526,193-SF positive
absorption, 475,307 SF of which was from second quarter 2016.
Law firm Bracewell took occupancy of their 52,851-SF office at the
newly delivered 2001 M Street, NW, and the American Association
of University Women moved from their previously owned-occupied
building to leased space at 1310 L Street, NW delivering a net
positive of 55,528 SF to the market. However, net absorption was
not shared evenly across all submarkets nor classes. Class B and
C product experienced negative year-to-date absorption, closing
with -83,708 SF and -26,698 SF, respectively. However, as tenants
have continued their flight to quality particularly as asking rents
have experienced nearly flat growth Class A inventory registered
739,599 SF of positive absorption for the first half of 2016.
Overall vacancy for the second quarter 2016 remained nearly flat,
with only a slight dip of 30 basis points (BP) year-over-year. As
the next wave of development kicked off, and existing product
was taken offline, Class B overall vacancy declined by 70 BP since
second quarter 2015. With vacancys slow decline, overall asking
rents have continued to hold, closing the second quarter at $51.74
per square foot (PSF), up 1.1% year-over-year.
Outlook
Relocations are expected to continue to dominate leasing activity,
particularly as concession packages remain at peak levels, thus
affording tenants the opportunity to offset the cost of relocation.
With tightening within the core Class B and C markets, and nearly
flat rental growth, many tenants with expirations in the next 12 to
18 months can expect to find favorable market conditions to tradeup, helping to chip away at lingering large blocks of Class A space,
further tightening already declining vacancy
Market Indicators
Overall Vacancy
Net Absorption
Under Construction
Deliveries
Average Asking Rent
12-Month
Forecast
2Q 15
2Q 16
12.0%
11.7%
491,138
475,307
2.11 M
3.5 M
478K
458K
$51.18
$51.74
Overall Net Absorption/Overall Asking Rent

District of Columbia, 4Q Trailing Average
12
$52
$51
$51
$50
$50
$49
$49
$48
$48
$47
10
8
6
4
2
0
-2
2011
2012
2013
2014
2015
Net Absorption, SF (thousands)
2016
Asking Rent, $ PSF
Overall Vacancy Rate

15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
2010
2011
2012
2013
2014
2015
2016
New Leasing Activity

8
7.3
6.8
7
5.9
5.8
5.2
Millions
Economy
4.8
4.5
5.2
4.7
3.3
3
1.9
2
1
0
06
Capitol Hill/NoMa
07
08
East End
09
CBD
10
11
West End/Georgetown
12
Uptown
13
14
Southwest
15
YTD'16
Capitol Riverfront
Washington, DCDC
Submarkets
Washington,
Submarkets
NORTHEAST
UPTOWN
WEST END/
GEORGETOWN
50
CBD
EAST END
NOMA
29
CAPITOL HILL
66
50
395
DI
ST
RIC
T
VIR OF
GI CO
L
NI
A UM
395
SOUTHWEST
BI
A
395
395
CAPITOL RIVERFRONT/
SOUTHEAST
295
Top Transactions
Key Lease Transactions 2Q 2016
PROPERTY
SF
TENANT
TRANSACTION TYPE
SUBMARKET
470-490 LEnfant Plaza SW
65,734
GSA Federal Aviation Administration
Renewal
Southwest
4000 Connecticut Avenue NW
57,709
Medstar
Renewal + Expansion
Uptown
955 LEnfant Plaza SW
51,299
DC Government
New Lease
Southwest
1333 H Street NW
49,206
Thomson Reuters
Renewal
East End
800 Maine Avenue SW
48,880
MakeOffices
Prelease
Southwest
Key Sales Transactions 2Q 2016

PROPERTY
SF
SELLER/BUYER
PRICE
SUBMARKET
1808 Eye Street, NW
32,529
Binswanger / Deutche Asset & Wealth Management
$17,800,000
CBD
1400 L Street, NW
169,500
Mack-Cali Realty Corporation / Meridian Group
$70,000,000
East End
1155 15th Street, NW
98,372
JAmestown Properties / Sidra Real Estate
$34,870,000
East End
National Press Building
468,251
AEW Capital JV Quadrangle / Normandy Real Estate Partners
$155,500,000
East End
Washington, DC Office Market
Washington, DC Office Market
12%
MSF
8%
1
4%
MSF
16%
Vacancy Rate
Inventory by Class, Second Quarter 2016

400
21%
350
19%
300
17%
250
15%
200
13%
150
11%
100
9%
50
7%
-1
05
06
07 08 09
Net Absorption
10 11 12
Deliveries
13 14 15
Vacancy Rate
16
0%
Capitol Hill/ East End

NoMa
Class A
Class B
CBD
West End/ Uptown

Georgetown
Class C
Vacancy %
Southwest
Capitol
Riverfront
Vacancy Rate
Net Absorption - Deliveries - Vacancy, Second Quarter 2016
5%
DC Overall Vacancy
Core (CBD/East End)

CBD
Market Indicators
Vacancy
9.8%
Net Absorption
Under Construction
57,000 SF
1,227,700 SF
Asking Rent
Deliveries
$53.19 FS
516,700 SF
*Arrows = Current Qtr Trend
1.0
16%
0.5
12%
0.0
8%
-0.5
4%
-1.0
Core market.
The Core market accounted for 64.3% of all new leasing activity in
the second quarter 2016 as well as 66.1% of all new leasing activity
for the first half of the year a total of 1.3 MSF of the 2.0 MSF of
new leases signed between January and June 2016. Core market
Class B new leasing activity alone accounted for 306,833 SF in
the first half of 2016. Across the entire Washington, DC market,
new leasing activity during the second quarter was comprised of
small and mid-sized tenants with sub-60,000-SF requirements.
The largest Core market lease of the second quarter 2016 was
the renewal by Thompson Reuters for 49,206 SF at 1333 H Street,
NW, in the East End which is undergoing extensive renovations.
Clark Hill signed the second-largest lease in the market during the
quarter, a 38,884-SF sublease at 1001 Pennsylvania Avenue, NW.
The law firm will relocate from 601 Pennsylvania Avenue, NW.
While the Core market has certainly felt the effects from the bulk
of large, law-firm lease expirations through 2018most of which
have already been addresseda handful of non-legal sector,
non-government agencies are expected to execute leases before
year-end 2016, helping to boost leasing activity for the year.
06
07 08 09
Net Absorption
10 11 12 13 14 15
Deliveries
Vacancy Rate
16
0%
New Leasing Activity (CBD)

3.50
3.00
MSF
2.50
2.00
1.50
1.00
0.50
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Q1
Q2
Q3
Q4
Asking Rent (CBD)

$70
$65
Full Service PSF
Overall Core market vacancy declined by 10 basis points (BP)

year-over-year to 10.9%, with Class B vacancy declining 130 BP
year-over-year, ending the second quarter 2016 at 12.7%. CBD
Class B overall vacancy slipped by 50 BP to 9.9%, a result of
redevelopment of Class B and C product expected through 2022
which has caused some tenants to shift their focus east. East
End Class B overall vacancy fell by 250 BP to 16.1%. The East End
began to experience some market softening in recent quarters
due to relocation of several federal agencies to more costcompetitive, non-core locations. In addition, law firms chasing
new product deliveries have turned their focus to the next wave
of new deliveries slated for the CBD, as was the case with Miller
Chevaliers first-quarter 2016 relocation to 900 16th Street, NW,
from the East End.
05
Vacancy Rate
Net Absorption Deliveries Vacancy (CBD)
MSF
The Washington, DC market experienced restrained leasing

activity during the first half of 2016, closing 2.0 million square
feet (MSF) of new leasing activity at the end of the second
quarter a 35.2% decline from the second quarter 2015. The Core
market accounted for 51.3% of Washington, DCs year-to-date
absorption, closing the second quarter 2016 at 270,172 square
feet (SF), the bulk of which was in the CBD with 236,792 SF. Yearover-year, however, overall net absorption declined by 86.5% as
fewer large tenants took occupancy and several federal tenants
that have become price-sensitive vacated for non-core options.
However, the softening conditions do not necessarily signal a
market decline, and overall, fundamentals have continued to
steadily tighten after several years of softness, particularly in the
$60
$55
$50
$45
$40
$35
2009
2010
2011
Class A
2012
2013
2014
2015
2016
Class B, $ PSF
Core (Continued...)
East End
Market Indicators
Vacancy
11.6%
Net Absorption
Under Construction
Deliveries
Asking Rent
153,600 SF
487,300 SF
0 SF
$55.95 FS
Net Absorption Deliveries Vacancy (East End)
1.5
12%
1.0
With current concession rates holding at peak levels, tenants

remain focused on a flight-to-quality. Relocations are expected to
continue to dominate leasing activity, particularly as concession
packages are likely to remain at peak levels, thus affording tenants
the opportunity to offset relocation costs. With tightening
among Core market Class B and C product and nearly flat rental
growth, many tenants with lease expirations in the next 12 to 18
months can expect to find favorable conditions in order to tradeup. That will help chip away at lingering large blocks of Class A
space, and further tighten already- declining vacancy across the
CBD and East End. While tenant flight-to-quality remains a key
market driver, it does not rule out demand for existing product,
particularly as more tenants become displaced.
16%
0.5
8%
0.0
4%
-0.5
-1.0
Vacancy Rate
2.0
MSF
With 14 proposed and under-construction development sites

in the CBD expected to deliver by 2022, several landlords have
commenced the process of delivering lease-termination notices.
New leasing activity is expected to remain robust throughout
the Core market over the next few years as new product comes
online and tenants that are displaced by slated redevelopments
are forced to relocate.
05
06
07 08 09
Net Absorption
10 11 12 13 14 15
Deliveries
Vacancy Rate
16
0%
New Leasing Activity (East End)

3.50
3.00
MSF
2.50
2.00
1.50
1.00
0.50
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Outlook
Q2
Q3
Q4
Asking Rent (East End)

$65
$60
Full Service PSF
While fundamentals in the Core market were softer in the

first half of 2016 compared to those in the first half of 2015,
the overall strength of the CBD and East End submarkets
remains healthy. The Core markets growing tenant base
from expanding industries and emerging sectors shows no
signs of slowing. With several leases expected to be finalized
before year-end 2016, new leasing activity will continue
to pick up. Additionally, the increasingly fluid blending of
the CBD and East End submarkets into the Core market
is expected to accelerate over the next 12 to 18 months as
tenants particularly those seeking larger blocks of space
are displaced by future redevelopments in the CBD and
look to the East End for existing options. While the leasing
momentum experienced in 2015 dialed back in the first half
of 2016, positive absorption, declining vacancy, and steady
rents are expected to persevere throughout the second half
of 2016.
Q1
$55
$50
$45
$40
$35
2009
2010
2011
Class A
2012
2013
2014
2015
2016
Class B, $ PSF
Non-Core
Vacancy
13.8%
Net Absorption
Under Construction
Deliveries
Asking Rent
264,700 SF
1,992,400 SF
341,300 SF
$47.33 FS
With the exception of a strong performance from the Wharf

development at 800 Maine Avenue, SW, the non-core submarkets
experienced relatively slow activity in the second quarter of
2016. Leasing activity for the non-core market as a whole totaled
201,600 square feet (SF), and only four direct leases exceeded
10,000 SF: MakeOffices and Van Scoyoc signed at 800 Maine
Avenue, NW for 43,900 and 21,900 SF, respectively; Acumen
signed for 14,800 SF at 440 1st Street, NW in Capitol Hill/NoMa;
and LearnZillion signed for 12,000 SF at 4001 Brandywine Street,
NW in Uptown. The non-core market accounted for 33.9% of all
leasing activity in the Washington, DC office market during second
quarter 2016. Despite the relative slowdown in leasing activity,
net absorption in the non-core market ended the quarter with
264,700 SF of positive demand. The two largest move-ins during
the second quarter were the District of Columbia Government
occupying nearly 117,600 SF at 250 E Street, NW and the National
League of Cities/National Association of Counties moving into
the newly delivered project at 660 North Capitol Street, NW.
Net Absorption Deliveries Vacancy

3.5
24%
3.0
20%
2.5
16%
2.0
1.5
12%
1.0
8%
0.5
4%
0.0
-0.5
Vacancy Rate
MSF
Market Indicators
07
08
09
10
Net Absorption
11
12
Deliveries
13
14
15
Vacancy Rate
16
0%

3,000.00
2,500.00
2,000.00
THSF
The non-core submarkets continue to be a great value play for

many of the tenants in the District of Columbia. Average asking
rents for non-core product are nearly 13% lower than those in
the core markets of the East End and CBD. Year-over-year, the
average asking rent has ticked downward 1% to $47.73 per square
foot (PSF) on a full-service basis (FS). Vacancy rates are another
notable story. Government tenants continue to be pushed out
of core East End product due to the $50.00 PSF/FS rent cap,
leading to increased competitiveness for GSA leasing activity
in non-core product. The vacancy rate across the non-core
market has declined 50 basis points (BP) from 13.8% a year ago
to 13.3% at the end of second quarter 2016. Southwest, Capitol
Riverfront and Capitol Hill/NoMa have all experienced positive
net absorption over the last four quarters totaling 140,000 SF,
223,200 SF, and 50,900 SF, respectively.
1,500.00
1,000.00
500.00
0.00
2007
2008
2009
2010
Q1
2011
Q2
Q3
2012
2013
2014
2015
2016
Q4
Asking Rent
$60
Outlook
Overall, the diverse tenant base of the non-core market,
and new, class A developments particularly those in the
emerging markets of Capitol Hill/NoMa, Capitol Riverfront,
and Southwest will continue to attract tenants in both
the private and public sectors who are seeking non-core
pricing in amenity-rich locations.
Full Service PSF
$55
$50
$45
$40
$35
2009
2010
2011
A
2012
2013
2014
2015
2016
West End/Georgetown/Uptown
West End
Market Indicators
Vacancy
11.4%
Net Absorption
Under Construction
Deliveries
Asking Rent
(28,300)SF
0 SF
0 SF
$52.18 FS
Net Absorption Deliveries Vacancy (WE/Gtown)

0.5
20%
12%
0.0
8%
4%
-0.5
05
development potential is limited.
06
07 08 09
Net Absorption
10 11 12 13 14 15
Deliveries
Vacancy Rate
16
0%
New Leasing Activity (WE/Gtown)

0.60
0.50
0.40
MSF
The Uptown submarket has seen market fundamentals over the

last four quarters move steadily back to those prior to Intelsats
relocation to Northern Virginia. Vacancy has declined 440 BP
over the last four quarters as leasing activity exceeded the 2015
level in the first two quarters alone. The market has absorbed
73,200 SF of inventory over the last four quarters as smaller local
tenants look to remain closer to residential neighborhoods in the
Washington, DC Metro area.
Vacancy Rate
16%
MSF
The West End/Georgetown area has experienced a relative

slowdown in market fundamentals over the last four quarters. In
two of the last four quartersincluding second quarter 2016the
submarket has failed to register more than 10,000 SF of leasing
activity, and in each of those two quarters tepid leasing activity
has been coupled with negative net absorption. But its not all
bad news for West End/Georgetown. The submarket continues
to have the strongest market fundamentals among non-core
submarkets. Overall asking rents are nearly $3.00 PSF/FS
more than those in the second highest non-core market, overall
vacancy (11.4%) is the lowest of all markets in the District of
Columbia except the CBD, and the submarket remains the most
land-constrained market in Washington, DC, so that true, new
0.30
0.20
0.10
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Q1 Q2 Q3 Q4
Asking Rent (WE/Gtown)

$68
The West End appears to be experiencing a renaissance as

several new development projects are set to change the
landscape of the commercial market and reinvigorate the
area. Of note are: the redevelopment and repurposing of
1255 22nd Street, NW into a multifamily (MF) project; 2501
M Street, NW which is adding 60 Class A MF units and is
rumored to have signed Nobu as the high-end retail tenant;
EastBancs projects on Squares 37 and 50 which will bring
over 250 MF units, a 21,000 SF library, 10,000 SF of retail
space, a fire station, and a squash club.
$63
Full Service PSF
Outlook
$58
$53
$48
$43
$38
$33
2009
2010
2011
Class A
2012
2013
2014
2015
2016
Class B, $ PSF
Capitol Hill/NoMa
Vacancy
13.1%
Net Absorption
Under Construction
Deliveries
Asking Rent
146,700 SF
1,288,100 SF
196,700 SF
$49.75 FS
Capitol Hill/NoMa was one of the strongest markets in second

quarter 2016, registering 146,600 SF of positive net absorption
and 97,600 SF of gross leasing activity. With only 10,000 SF of
leasing activity from federal government tenants, Capitol Hill/
oMa have recently captured a higher percentage of leasing from
the private sector, much of which is small-to-mid-size tenants.
Median deal size for the quarter was 4,364 SF, solidifying the
small-tenant market for Capitol Hill/NoMa. The largest deal of
the quarter was that of Acumen which signed for 14,750 SF at
440 1st Street, NW after an extensive search to remain close to
the Capitol Building. The GSA signed the largest renewal of the
quarter, a 10,000 SF lease at 121 M Street, NW.
The well-located assets within the Capitol Hill/NoMa area drove
much of the market activity in the second quarter. 660 North
Capitol Street, NW delivered in May, with the National League of
Cities and National Association of Counties occupying 76,900
SF. The Marine Engineers Benefits Council renewed for 6,900 SF
and Liberty Mutual signed a new deal for 4,400 SF at 400-444
North Capitol Street, NW, while AT&T took occupancy at 601 New
Jersey Avenue, NW.

24%
2.0
20%
16%
1.0
12%
8%
0.0
Vacancy Rate
MSF
Market Indicators
4%
-1.0
05
06
07 08 09
Net Absorption
10 11 12 13 14 15
Deliveries
Vacancy Rate
16
0%

1.40
1.20
MSF
1.00
Vacancy in the Capitol Hill/NoMa submarket rose slightly from

the previous quarter, ending second quarter 2016 at 13.3%, while
average asking rents declined 1.3% year-over-year to $49.75
PSF/FS. While the market experienced positive net absorption
in the second quarter, move-ins offset the relocations out of the
submarket during the first quarter; year-to-date net absorption
totals 9,700 SF.
0.80
0.60
0.40
0.20
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Q1
Q2
Q3
Q4
Asking Rent
$65
Outlook
Expect more federal moves out of the core submarkets

to the emerging markets such as NoMA as it offers new
production that gives the GSA the efficiency desires at
an attractive price point below prospectus rent caps.
Capitol Hill/NoMas proximity to the Capitol,
transportation options, and growing amenity base will
continue to remain attractive for private and public
sector tenants alike particularly those who are
seeking core-quality assets at non-core pricing.
$60
Full Service PSF
$55
$50
$45
$40
$35
2009
2010
2011
Class A
2012
2013
2014
2015
2016
Class B, $ PSF
Southwest/Capitol Riverfront
Vacancy
13.7%
Net Absorption
Under Construction
140,000 SF
427,400 SF
At mid-year 2016, demand across both Capitol Riverfront and

Southwest remains strong. The Capitol Riverfront submarket
experienced 97,500 SF of positive net absorption and 71,800
SF of gross leasing activity at mid-year, while the Southwest
submarket experienced over 182,000 SF of gross leasing activity
and registered 147,000 SF of positive net absorption during
the same period. Each quarter had a clear winner though.
The Capitol Riverfront submarket registered 104,400 SF of
positive net absorption in the first quarter only to follow up that
strong performance with negative 6,900 SF of net absorption
in the second quarter. The opposite occurred in Southwest:
net absorption was a negative 30,700 SF in the first quarter;
however, a number of significant relocations resulted in 147,000
SF of positive net absorption in the second quarter. The Wharf in
Southwest was home to the two largest private-sector deals of
second quarter 2016 in non-core submarkets: MakeOffices and
Van Scoyoc signed for 43,900 SF and 21,900 SF, respectively.
Deliveries
Asking Rent
341,300 SF
$46.30 FS

1.5
28%
24%
20%
16%
0.5
12%
8%
Vacancy Rate
MSF
Market Indicators
4%
-0.5
05
06
07
08
09
10
Net Absorption
11
12
13
Deliveries
14
15
16
0%
Vacancy Rate

1.80
1.60
1.40
1.20
MSF
The Capitol Riverfront/Southwest submarket has experienced

increased activity throughout the first half of 2016 and vacancy
in has declined 80 BP year-over-year to end second quarter 2016
at 12.3%. But the market has become unpredictable; demand
from the private sector continues to be spotty (as it was over the
last four quarters) in what was traditionally an emerging market
chasing government tenants.
1.00
0.80
0.60
0.40
0.20
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Q1
Q2
Q3
Q4
Asking Rent
Outlook
The combined submarket also continues to be one of the
most active development locations across the Washington,
DC Metropolitan area. Many developers continue to vie
for new land in the submarket to take advantage of the
emerging market. Along with multifamily development
in the area around Nationals Park and along the Capitol
Riverfront, the development of The Wharf and Skanskas
99 M Street, SE is positioned attract new-found activity.
Full Service PSF
$55
$50
$45
$40
$35
2009
2010
2011
Class A
2012
2013
2014
2015
2016
Class B, $ PSF
Appendix
Table Summaries
Metro Washington Office
Market Summary
13
Employment Data
13
Office Availability, Vacancy,
and Net Absorption
14
Metro Washington Office Market Summary: Second Quarter 2016p

Inventory
Total Vacant
Space
Vacancy
Rate
Q22016 Absorption
Year to Date
Absorption
Washington, DC
109,154,672
12,723,903
11.7%
475,307
526,193
Northern Virginia
130,922,599
28,258,456
21.6%
370,820
51,688
Suburban Maryland
56,710,165
12,035,509
21.2%
118,279
252,192
Regional Totals
296,787,436
53,017,868
17.9%
964,406
830,073
Trailing 12-Month Data

15
Historical Year-End Data
16
Metro Washington Current Employment Data

Non Farm
Employment
(Jan-Jun 2016)
Non Farm
Employment
(Jan-Jun 2016p)
Jobs Added/
Lost*
Percent Change
Washington, DC
765,500
776,467
10,967
1.4%
Northern Virginia
1,393,667
1,426,933
33,266
2.4%
971,717
993,567
21,850
2.2%
3,130,884
3,196,967
66,083
2.1%
Market Statistics by Class

17-18
Survey of New Office Space
by Submarket
19-22
Methodology & Definitions
23
Suburban Maryland
Regional Totals
SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted)

* Average per year to date
p - preliminary
37,496,445
5,097,432
13,603,173
10,931,247
4,674,326
4,070,754
109,154,672
East End
West End/
Georgetown
Capitol Hill/NoMa
Southwest
Capitol Riverfront/
Southeast
Uptown
TOTAL
p - preliminary
33,281,295
CBD
Total
Inventory
11,872,721
772,394
590,224
1,291,607
1,756,887
508,179
4,015,092
2,938,338
New/
Relet Space
Vacant
851,182
19,046
31,784
11,164
46,043
73,354
344,825
324,966
Sublet Space
Vacant
12,723,903
791,440
622,008
1,302,771
1,802,930
581,533
4,359,917
3,263,304
Total Space
Vacant
11.7%
19.4%
13.3%
11.9%
13.3%
11.4%
11.6%
9.8%
Vacancy Rate
(%)
Office Availability, Vacancy, and Net Absorption, Second Quarter 2016p
570,080
7,722
4,948
145,170
127,786
9,567
178,401
96,486
New/
Relet Space
Absorption
(94,773)
(1,335)
(11,887)
1,780
18,787
(37,869)
(24,809)
(39,440)
Sublet Space
Absorption
475,307
6,387
(6,939)
146,950
146,573
(28,302)
153,592
57,046
Total
Absorption
Appendix
37,686,959
5,097,432
13,249,755
10,667,091
4,674,326
4,014,207
108,447,228
East End
West End/
Georgetown
Capitol Hill/NoMa
Southwest
Capitol Riverfront/
Southeast
Uptown
TOTAL
p - preliminary
33,057,458
CBD
3rd Qtr
2015
Trailing 12-Month Data
108,447,228
4,014,207
4,674,326
10,667,091
13,249,755
5,097,432
37,686,959
33,057,458
4th Qtr
2015
109,130,610
4,070,754
4,674,326
10,931,247
13,406,451
5,097,432
37,713,248
33,237,152
1st Qtr
2016
Total Inventory
109,154,672
4,070,754
4,674,326
10,931,247
13,603,173
5,097,432
37,496,445
33,281,295
2nd Qtr
2016 p
11.0%
23.5%
15.9%
10.9%
12.2%
11.4%
12.7%
9.9%
3rd Qtr
2015
11.6%
23.2%
15.4%
10.8%
12.2%
11.2%
12.0%
9.3%
4th Qtr
2015
11.8%
19.6%
13.2%
13.9%
13.1%
10.9%
12.2%
9.1%
1st Qtr
2016
Vacancy Rate (%)
11.7%
19.4%
13.3%
11.9%
13.3%
11.4%
11.6%
9.8%
2nd Qtr
2016 p
281,776
15,017
102,365
8,192
41,337
(11,870)
32,843
93,892
3rd Qtr
2015
501,971
13,085
23,326
15,596
(134)
11,555
253,698
184,845
4th Qtr
2015
50,886
38,711
104,401
(30,701)
(136,862)
15,803
(120,212)
179,746
1st Qtr
2016
Total Absorption
475,307
6,387
(6,939)
146,950
146,573
(28,302)
153,592
57,046
2nd Qtr
2016 p
Appendix
36,708,570
5,194,432
13,249,755
10,765,786
4,674,326
3,912,915
107,953,141
East End
West End/
Georgetown
Capitol Hill/NoMa
Southwest
Capitol Riverfront/
Southeast
Uptown
TOTAL
p - preliminary
33,447,357
CBD
2013
Historical Year-End Data
107,461,314
3,751,857
4,674,326
10,667,091
13,249,755
5,097,432
36,940,570
33,080,283
2014
108,447,228
4,014,207
4,674,326
10,667,091
13,249,755
5,097,432
37,686,959
33,057,458
2015
Total Inventory
109,154,672
4,070,754
4,674,326
10,931,247
13,603,173
5,097,432
37,496,445
33,281,295
2016p
14.4%
13.5%
17.1%
20.1%
15.5%
9.2%
13.2%
14.1%
2013
13.0%
22.6%
18.9%
17.2%
13.4%
12.2%
11.7%
11.2%
2014
11.6%
23.2%
15.4%
10.8%
12.2%
11.2%
12.0%
9.3%
2015
Vacancy Rate (%)
11.7%
19.4%
13.3%
11.9%
13.3%
11.4%
11.6%
9.8%
2016p
(29,475)
(48,155)
(20,648)
(251,582)
158,132
128,765
(40,940)
44,953
2013
962,536
(370,052)
(81,409)
232,425
153,842
(181,106)
487,410
721,426
2014
1,884,188
(28,187)
162,242
403,406
165,215
54,773
534,436
592,303
2015
Total Absorption
526,193
45,098
97,462
116,249
9,711
(12,499)
33,380
236,792
2016P
Appendix
Market Statistics
Washington, DC 2nd Quarter 2016 Market Statistics
Buildings
Total
Inventory
(SF)
New/Relet
Vacancy
(%)
Sublet
Vacancy
(%)
Total
Vacancy*
(%)
Net
Absorption
Current QTR
(SF)
Under
Construction
(SF)
Average
Asking Rent
(FS)
51
12,760,758
9.7%
0.6%
10.3%
138,160
1,227,659
$64.45
57
10,892,731
8.2%
1.1%
9.3%
(85,142)
$47.85
77
9,627,806
8.4%
1.3%
9.7%
4,028
$43.33
TOTAL
182
33,281,295
8.8%
0.6%
9.8%
57,046
1,227,659
$53.19
75
22,299,997
9.9%
1.1%
11.0%
67,346
487,286
$59.93
41
9,028,426
15.3%
0.8%
16.1%
110,676
$55.91
43
6,168,022
7.0%
0.4%
7.4%
(24,430)
$43.90
TOTAL
158
37,496,445
10.7%
0.6%
11.6%
153,592
487,286
$55.95
CBD
Class
East End
Class
West End/Georgetown
Class
A
1,437,437
21.8%
0.8%
22.6%
150
$56.79
10
1,938,420
7.3%
3.1%
10.5%
(25,564)
$44.20
14
1,721,575
3.1%
0.0%
3.1%
(2,888)
$40.79
TOTAL
31
5,097,432
10.0%
0.6%
11.4%
(28,302)
$52.18
23
7,204,305
15.3%
0.5%
15.9%
121,051
1,288,086
$60.85
18
5,122,825
9.6%
0.1%
9.7%
11,061
$45.34
11
1,276,043
12.6%
0.0%
12.6%
14,461
$28.43
TOTAL
19
13,603,173
12.9%
0.6%
13.3%
146,573
1,288,086
$49.75
19
8,188,245
10.6%
0.0%
10.6%
124,668
211,787
$51.15
1,593,948
19.3%
0.7%
20.0%
25,303
$44.83
1,149,054
9.8%
0.0%
9.8%
(3,021)
$47.08
TOTAL
31
10,931,247
11.8%
0.6%
11.9%
146,950
211,787
$47.91
Capitol Hill
Class
Southwest
Class
* Total Vacancy - the vacancy rate is calculated using the combined total of relet, sublet and new vacant space.
Market Statistics
Washington, DC 2nd Quarter 2016 Market Statistics
Buildings
Total
Inventory
(SF)
New/Relet
Vacancy
(%)
Sublet
Vacancy
(%)
Total
Vacancy*
(%)
Net
Absorption
Current QTR
(SF)
Under
Construction
(SF)
Average
Asking Rent
(FS)
Capitol Riverfront
Class
A
10
3,596,764
10.4%
0.9%
11.3%
(6,939)
215,616
$44.15
0.0%
0.0%
0.0%
$0.00
1,077,562
20.1%
0.0%
20.1%
$39.00
TOTAL
12
4,674,326
12.6%
0.6%
13.3%
(6,939)
215,616
$41.39
367,832
0.5%
2.3%
2.9%
82,919
$46.00
1,928,639
33.1%
0.0%
33.2%
150
$42.98
21
1,774,283
7.4%
0.5%
8.0%
6,237
$38.70
TOTAL
31
4,070,754
19.0%
0.6%
19.4%
6,387
82,919
$42.25
Uptown
Class
Washington, DC
Class
A
187
55,855,338
10.9%
0.8%
11.7%
444,436
3,513,353
$59.41
141
30,504,989
12.6%
0.9%
13.5%
36,484
$49.16
174
22,794,345
8.4%
0.7%
9.1%
(5,613)
$41.52
TOTAL
501
109,154,672
9.2%
0.6%
11.7%
475,307
3,513,353
$51.74
* Total Vacancy - the vacancy rate is calculated using the combined total of relet, sublet and new vacant space.
Skanska USA
2112 Pennsylvania Avenue, NW
$64.00 - $66.00 FS
N/A
RREEF / Prudential
Tishman Speyer / Farragut
Development Co
1800 K Street, NW
2000 K Street, NW
Douglas Development Corporation

Gould Property Company
1000 F Street, NW
600 Massachusetts Avenue, NW
FS
N
U/C = Under Construction
U/R = Under Renovation

NNN = Net of all Operating Expenses and Taxes
= Plus Electric NT = Plus Taxes
= Full Service NN = Plus Electric & Char
Operating Expense and Real Estate Tax Base
Low to Mid $50's NNN
Status
Total
TA Realty / Robert C Elder Associate $71.00 - $80.00 FS
1333 H Street, NW
$55.00-$65.00 NNN
OWNER/DEVELOPER
BUILDING ADDRESS
East End
RENTAL RATE
$67.00 - $71.00 FS
Tishman Speyer / Olver T Carr

Company
900 19th Street, NW
Total
N/A
Rockrose Development
Corporation/Spitzer Enterprises
N/A
N/A
RENTAL RATE
2001 K Street, NW (Alexander Court)
1100 15th Street, NW (Midtown Center Carr Properties

Fannie Mae)
OWNER/DEVELOPER
BUILDING ADDRESS
CBD
U/C
U/C
U/R
STATUS
U/R
U/R
U/R
U/C
U/R
U/C
STATUS
3Q16
4Q16
4Q16
DELIVERY
DATE
2Q17
3Q16
1Q17
4Q17
2Q18
1Q18
DELIVERY
DATE
752,370
401,172
86,114
265,084
RENTABLE
BUILDING
AREA
1,752,819
222,118
201,226
101,816
177,659
810,000
240,000
RENTABLE
BUILDING
AREA
Washington, DC Survey of Office Space Under Construction/Under Renovation
259,644
103,382
86,114
70,148
AVAILABLE
SPACE
842,481
222,118
172,485
101,816
177,659
43,000
125,403
AVAILABLE
SPACE
65%
74%
0%
74%
PERCENT
PRELEASED
52%
0%
14%
0%
0%
95%
48%
PERCENT
PRELEASED
Venable
N/A
N/A
MAJOR TENANTS
N/A
N/A
N/A
Cornerstone Research
Fannie Mae
Cleary Gottlieb
MAJOR TENANTS

Eastbanc / Stanton Development
Property Group Partners
Property Group Partners
1140 3rd Street, NE
700 Pennsylvania Avenue, SE
1328-1346 Florida Avenue, NW

(Manhattan Laundry
2,223,121
4,303,597
2018 DELIVERIES
TOTAL CURRENTLY UNDER

CONSTRUCTION/RENOVATION
AVAILABLE
SPACE
RENTABLE
BUILDING
AREA
2,724,144
1,341,524
806,944
575,676
13,849
13,849
AVAILABLE
SPACE
364,386
215,616
148,770
AVAILABLE
SPACE
1,243,784
532,209
425,296
156,581
129,698
AVAILABLE
SPACE
82,919
82,919
RENTABLE
BUILDING
AREA
869,961
3Q16
DELIVERY
DATE
427,403
215,616
211,787
RENTABLE
BUILDING
AREA
1,288,086
532,209
425,296
156,581
174,000
RENTABLE
BUILDING
AREA
2017 DELIVERIES
U/C
STATUS
1Q18
3Q17
DELIVERY
DATE
3Q18
1Q18
2Q17
3Q16
DELIVERY
DATE
1,210,515
$61.00 FS
RENTAL RATE
U/C
U/C
STATUS
U/C
U/C
U/C
U/C
STATUS
2016 DELIVERIES
Washington, DC Summary
Total
OWNER/DEVELOPER
BUILDING ADDRESS
Uptown
Total
Mid to High $50's FS
Skanska
99 M Street, SE
RENTAL RATE
Mid to High $50's FS
OWNER/DEVELOPER
Withheld
Withheld
$65.00 - $73.00 FS
$56.00 - $61.00 FS
RENTAL RATE
The Wharf Phase 1- 800 Maine Avenue,

PN Hoffman / Madison Marquette
SW
BUILDING ADDRESS
Southwest/Capitol Riverfront/Southeast
Total
OWNER/DEVELOPER
BUILDING ADDRESS
Capitol Hill/ NoMa
Washington, DC Survey of Office Space Under Construction/Under Renovation
37%
40%
7%
52%
PERCENT
PRELEASED
83%
83%
PERCENT
PRELEASED
15%
0%
30%
PERCENT
PRELEASED
3%
0%
0%
0%
25%
PERCENT
PRELEASED
WeWork
MAJOR TENANTS
N/A
APA
MAJOR TENANTS
N/A
N/A
N/A
N/A
MAJOR TENANTS
Republic Properties Corporation
Brookfield Office Properties
The JBG Companies
Columbia Funding Corp
660 N Capitol Street, NW
2001 M Street, NW
900 16th Street, NW
500 D Street,SW (National Square
ASB Real Estate Investments / MRP

Realty, Inc
900 G Street, NW
FS
$47.00-$53.00 NNN
$53.50 NNN
RENTAL RATE
$50.00 - $55.00 FS
$81.00 - $83.00 FS
$70.00 - $80.00 FS
$69.00 - $76.00 FS
RENTAL RATE
East End
East End
SUBMARKET
Southwest
East End
CBD
Capitol Hill
SUBMARKET
577,295
104,541
472,754
RENTABLE
BUILDING
AREA
926,830
341,283
127,825
261,000
196,722
RENTABLE
BUILDING
AREA
69,551
14,654
54,897
NEW SPACE
AVAILABLE
635,145
341,283
28,380
145,681
119,801
NEW SPACE
AVAILABLE
*Vacancy rate for new office space- does not include relet or sublet space available
Delivered 1Q15
Boston Properties
Total
Delivered 3Q15
OWNER/DEVELOPER
STATUS
Delivered 1Q16
Delivered 1Q16
Delivered 2Q16
Delivered 2Q16
STATUS
BUILDING ADDRESS
2015 Deliveries
Total
OWNER/DEVELOPER
BUILDING ADDRESS
2016 Deliveries
Washington, DC Survey of New Office Space
12%
14%
12%
VACANCY RATE (AS OF

CURRENT QUARTER)*
69%
100%
22%
56%
61%
VACANCY RATE (AS OF

CURRENT QUARTER)*
40%
84%
PERCENT LEASED UPON DELIVERY
0%
78%
18%
38%
Furioso Development
Perseus Realty
Brookfield Office Properties
Akridge
Hines
Union Investments
Hines
799 9th Street, NW
AAMC
655 K Street, NW
600 13th Street, NW
CityCenter DC
North and South Towers
800/850 10th Street, NW
$46.50 FS
N/A
RENTAL RATE
Withheld
$36.00-$47.00 NNN
Renovation
Low-Mid $40's FS
Completed 2Q13
Delivered 1Q13
First Potomac Realty Trust / The

Lenkin Company Management
Angelo Gordon / Monument Realty /

Verizon Communications
440 1st Street, NW
Wonder Bread Building

641 S Street, NW
2055 L Street, NW
FS
Renovation
$53.00-$62.00 FS
Completed 3Q13
Carr Properties
1700 New York Avenue, NW
Arch Square
801-803 7th Street, NW
Total
Delivered 4Q13
Trammell Crow Company
N/A
N/A
$55.00 NNN
$52.00-$55.00 FS
East End
CBD
Uptown
Capitol Hill
CBD
NoMa
NoMa
SUBMARKET
East End
East End
East End
CBD
East End
Uptown
Uptown
SUBMARKET
0
315,816
25,000
26,292
289,524
NEW SPACE
AVAILABLE
98,344
1,328
19,326
19,996
20,948
36,746
NEW SPACE
AVAILABLE
1,145,399
126,760
81,633
137,495
121,987
289,524
363,000
RENTABLE
BUILDING
AREA
1,473,976
531,652
221,659
273,454
168,837
204,025
27,761
46,588
RENTABLE
BUILDING
AREA
*Vacancy rate for new office space- does not include relet or sublet space available
Delivered 1Q13
Delivered 4Q13
$30.00's NNN
Sentinel Square Phase II

1050 1st Street, NE
Delivered 4Q13
StonebridgeCarras
Three Constitution Square

175 N Street, NE
RENTAL RATE
$50.00-$57.00 NNN
OWNER/DEVELOPER
STATUS
Delivered 1Q14
Renovation
$44.00-$48.00 NNN
Completed 1Q14
Delivered 2Q14
Delivered 3Q14
Renovation
$48.00-$54.00 NNN
Completed 3Q14
Delivered 3Q14
Delivered 4Q14
STATUS
BUILDING ADDRESS
2013 Deliveries
Total
OWNER/DEVELOPER
BUILDING ADDRESS
2014 Deliveries
Washington, DC Survey of New Office Space
28%
0%
0%
0%
19%
0%
100%
0%
VACANCY RATE (AS OF

CURRENT QUARTER)*
7%
0%
9%
7%
12%
18%
0%
0%
VACANCY RATE (AS OF

CURRENT QUARTER)*
76%
74%
0%
14%
78%
0%
0%
97%
85%
79%
60%
73%
100%
100%
Methodology & Definitions

Methodology
Explanation of Terms
Market statistics are calculated

from a base building inventory
made up of office properties
deemed to be competitive in the
typical Washington, DC office
market. Single-tenant buildings and
privately-owned buildings in which
the federal government leases space
are included.
Generally, owneroccupied
and
federally-owned
buildings are not included. Older
buildings unfit for occupancy or ones
that require substantial renovation
before
tenancy
are
generally
not included in the competitive
inventory. Vacant space is defined
as space that is physically vacant and
available immediately. Sublet space
still occupied by the tenant is not
counted as vacant space.
Total Inventory: The total amount

of office space (in buildings greater
than 10,000 square feet) that can be
rented by a Fourth party.
New Space Vacant: First generation,
never-occupied office space in
newly constructed or substantially
renovated buildings, being actively
marketed by a landlord.
Relet
Space
Vacant:
Secondgeneration,
unoccupied
office
space being actively marketed by a
landlord. (Space that is marketed but
largely occupied is not counted as
vacant space.)
Sublet Space Vacant: Secondgeneration, unoccupied space being
actively marketed by a tenant.
(Sublet space that is marketed but
still occupied is not counted as
vacant space.)
Total Space Vacant: The sum of
new, relet, and sublet space that
is unoccupied and being actively
marketed.
Vacancy Rate: The amount of
unoccupied space (new, relet, and
sublet) expressed as a percentage of
total inventory. (Total Space Vacant
divided by Total Inventory.)
Total Space Available: The total

amount of space, both vacant and
occupied, being actively marketed
for lease by a tenant or landlord.
(This includes space that is currently
occupied but marketed for future
availability.)
Availability Rate: The total amount
of space being actively marketed for
lease (both vacant and occupied)
expressed as a percentage of total
inventory. (Total Space Available
divided by Total Inventory.)
Absorption: The net change in
occupied space between two points
in time. (Total occupied space in the
previous quarter minus total occupied
space in the current quarter, quoted
on a net, not gross, basis.)
New/Relet/Sublet Absorption: The
net change in occupied new, relet,
and sublet space between two
quarters.
Total Absorption: The net change
in total occupied (new, relet, and
sublet) space between two quarters.
New Leasing Activity: The sum of
all square footage underlying any
leases between two quarters. This
includes pre-leasing activity as well
as expansion. It does not include
renewals.
Disclaimer
This report and other research materials may be found on our website at www.cushmanwakefield.com. This is a research
document of Cushman & Wakefield in Washington, DC. Questions related to information herein should be directed to the
Research Department at +1 202 463 2100. Information contained herein has been obtained from sources deemed reliable and
no representation is made as to the accuracy thereof.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and
live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by
combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman
& Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of
agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset
management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more,
visit www.cushmanwakefield.com or follow @CushWake on Twitter.
Visit cushmanwakefield.com for more information on the full range of

Cushman & Wakefield commercial real estate services or contact:
Nathan Edwards
Regional Director
2101 L Street, NW, Suite 700
Washington, DC 20037
+1 202 463 2100
Summer Newman
Senior Research Analyst
+1 202 463 2100
Joseph Wood
Research Analyst
+1 202 463 2100
About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm that helps clients
transform the way people work, shop, and live. Our 43,000 employees in more than
60 countries help investors and occupiers optimize the value of their real estate by
combining our global perspective and deep local knowledge with an impressive
platform of real estate solutions. Cushman & Wakefield is among the largest
commercial real estate services firms with revenue of $5 billion across core services
of agency leasing, asset services, capital markets, facility services (C&W Services),
global occupier services, investment & asset management (DTZ Investors), project &
development services, tenant representation, and valuation & advisory. To learn more,
visit www.cushmanwakefield.com or follow @CushWake on Twitter.
Publication date: 6.2.16

Copyright 2016 Cushman & Wakefield. All rights reserved.
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Market Report

Washington, DC | 2nd Quarter 2016

DC Metropolitan Area Overview..............................................................................3

Cushman & Wakefield | 2

Washington, DC Metropolitan Area

At mid-year 2016, the Washington, DC metropolitan regions

Breaking down the jobs data by sector, growth in office-using

The outlook for the Washington, DC Metro region from an investment

Average Asking Rent (FS)

Net Absorption/Asking Rent

Net Absorption, MSF

Asking Rent, $ PSF

Washington, DC Metropolitan Area

Strong Economic Growth Continues

Overall Net Absorption/Overall Asking Rent

Net Absorption, SF (thousands)

Asking Rent, $ PSF

Overall Vacancy Rate

New Leasing Activity

Cushman & Wakefield | 4

470-490 LEnfant Plaza SW

GSA Federal Aviation Administration

4000 Connecticut Avenue NW

955 LEnfant Plaza SW

800 Maine Avenue SW

Key Sales Transactions 2Q 2016

1808 Eye Street, NW

Binswanger / Deutche Asset & Wealth Management

Mack-Cali Realty Corporation / Meridian Group

1155 15th Street, NW

JAmestown Properties / Sidra Real Estate

National Press Building

AEW Capital JV Quadrangle / Normandy Real Estate Partners

Washington, DC Office Market

Washington, DC Office Market

Inventory by Class, Second Quarter 2016

Capitol Hill/ East End

West End/ Uptown

Net Absorption - Deliveries - Vacancy, Second Quarter 2016

Cushman & Wakefield | 6

Core (CBD/East End)

*Arrows = Current Qtr Trend

New Leasing Activity (CBD)

Asking Rent (CBD)

Overall Core market vacancy declined by 10 basis points (BP)

Net Absorption Deliveries Vacancy (CBD)

The Washington, DC market experienced restrained leasing

*Arrows = Current Qtr Trend

Net Absorption Deliveries Vacancy (East End)

With current concession rates holding at peak levels, tenants

With 14 proposed and under-construction development sites

New Leasing Activity (East End)

Asking Rent (East End)

While fundamentals in the Core market were softer in the

Cushman & Wakefield | 8

With the exception of a strong performance from the Wharf

Net Absorption Deliveries Vacancy

*Arrows = Current Qtr Trend

New Leasing Activity

The non-core submarkets continue to be a great value play for

Full Service PSF

*Arrows = Current Qtr Trend

Net Absorption Deliveries Vacancy (WE/Gtown)