Washington, DC Commercial Real Estate

Washington, D.C. Commercial and Office Space Overview

Run entirely by the United States Congress and the only non-state territory in the continental United States, Washington, D.C. is an iconic and historic city throughout the world. Home to the federal government, critical operations of the entire nation - if not the world - happen within the borders of D.C. From the White House to the U.S. Capitol Building to the Washington Monument and the Lincoln Memorial, the city has no shortage of postcard-friendly sights and destinations.

In the backdrop of these major tourist attractions and centers of government, however, lies a bustling and vibrant business community that caters to entrepreneurs and international corporations alike. Hundreds of listings are routinely available with a higher than average median rate of $66 per square foot/year.

Economy of Washington, D.C.

Nearly 30% of D.C. residents are employed by the federal government, but many of those who work in D.C. commute to the city. Thanks to its small size and easy transportation options to Maryland and Virginia, the city’s metropolitan area is nine times greater than its actual population, making it the 6th largest metro area in the United States.

Tourism serves as the city’s second-largest economic force, bringing 20 million visitors each year and contributing almost $5 billion to the area’s economy. The presence of over 200 embassies and international organizations provide 10,000 jobs and provide nearly half a billion dollars to the city’s economy on an annual basis.

Professional services, lobbying, legal, media, and public relations firms populate much of D.C.’s economic pie, where proximity to federal agencies and public officials is a valued commodity. But the city has a strong background in education, healthcare, scientific research, and finance (in fact, Freddie Mae holds its headquarters in the nation’s capital). Three other Fortune 500 companies call D.C. home, namely Danaher, Pepco Holdings, and the Washington Post.

Trends of Washington, D.C.

As of 2018, Washington D.C. saw over $6 billion in real estate investments throughout the city’s tight 61 square miles, adding 27 million square feet for mixed use, commercial, and residential properties.

Since 2010, 620 projects have been completed, adding 76 million square feet of commercial real estate alone. And while most current projects are focused on residential real estate, the city has a glut of available commercial spaces throughout each corner of its boundaries.

Where to Lease Commercial Real Estate in Washington, D.C.

Due to the city’s tight boundaries, there’s no “bad” spot for companies reliant on foot traffic, hospitality, or professional services. However, for those seeking proximity to the capitol building, White House, or George Washington University, it’s wise (albeit more costly) to consider property in the Downtown area or Capitol Hill neighborhood. Dupont Circle and Georgetown serve a more residential crowd to the northwest of the heart of the city and are fine candidates for professional services, nightlife, and retail.