Downtown D.C.'s office vacancies hit another record-setting high in late 2019, a continued cause for alarm among the District's commercial real estate industry.
The Downtown D.C. Business Improvement District estimates there's about 7.7 million square feet of empty office space within its borders, per a report the BID released earlier this month. That number surpassed the previous record of 6.8 million the business district reported with its annual State of Downtown report released last April. The latest numbers bring the vacancy rate to 13.9%, the highest rate since 1993.
The problem, caused by a confluence of events, which include new construction and increased efficiency among tenants, continues to put strain on landlords, forcing many to sweeten the pot with free rent and tenant improvement packages in an effort to plug holes or stave off potential vacancies, according to the BID report.