Despite only 8,586 sq. ft. of positive absorption in Q3 2019, the Northern Virginia office market registered its ninth consecutive quarter of occupancy gains—the longest continuous stretch of growth since 2008 for a total of 2.7 million sq. ft. Vacancy remained unchanged over the prior quarter at 19.3%, but is down 160 basis points (bps) from its all time peak level in Q4 2017.
Leasing activity by government users increased during the quarter to 1.0 million sq. ft., accounting for 39% of total leasing volume—up significantly from 9% in the first half of the year. However, the increase in gross leasing did not result in occupancy gains, as most of the leases were flat renewals.