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News release


Metro DC Quarterly Office Sales Volume Tops $1.5B

JLL Report Shows 92% of Leasing Activity within Half-Mile of Metro

WASHINGTON, APRIL 2, 2015 - Investment sales volume in the greater Washington, DC office market totalled $1.8 billion in the first quarter of 2015, helping boost average office building sales prices across the metro area above $500 per square foot, according to JLL's first quarter market reports.

Core transactions within the District of Columbia represented more than three-quarters of the transaction volume, well above the historic quarterly average of 53.5 percent. Transactions were primarily the result of foreign investment, which accounted for $1.3 billion in the first quarter, a record-high.

The region has seen three office transactions achieve the market's highest per-square-foot cost in the last 12 months, and the cost per-square-foot for Trophy/Class A properties has reached an all-time high, averaging $818 per square foot, according to the report.

"The trailing 12 month appreciation in asset values for downtown Trophy and Class A office buildings is 20.3 percent, more than double its historical average of 8.7 percent," said Mid-Atlantic Research Director Scott Homa. "Overwhelming demand, low interest rates and availability of capital will continue to drive pricing for core assets located in Metro DC." 

The Washington region’s economy registered employment gains of 46,300 jobs year-over-year in the month ending January 2015, well above the long-term average growth of approximately 38,000 jobs, according to the report. Washington, D.C.’s primary office-occupying sector – professional and business services – registered 12-month job growth of 10,400 positions, the strongest rate in nearly two years.

Leasing activity in Metro DC was almost exclusively focused on buildings within one-half mile of an existing or planned Metro station, with 92.3 percent of overall leasing volume concentrated in these transit-accessible locations.

“We’ve seen tenants across virtually all segments of the market gravitate to walkable, amenity-rich and transit-friendly locations,” added Homa. “Employers are recognizing that to tap into today’s highly educated millennial workforce in Washington, Metro access is an absolute requirement. Adding walkable amenities creates a dynamic environment in which employees feel more connected to the workplace, and these elements are pivotal in recruitment and employee retention.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $53.6 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit