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Tech driving activity within the Trophy and Class A markets as space preferences evolve

  • ​Throughout the current cycle, Washington, DC has nurtured a young and growing tech scene that has largely driven demand for small blocks of brick-and-timber space in Class B/C product priced below $50 p.s.f. full service.
  • However, over the past 24 months, tech demand for higher quality Trophy and Class A space has started to backfill second-generation blocks priced above $60 p.s.f. FS, a market segment challenged by law firm rightsizing.
  • The tech scene in DC has begun to show signs of evolution beyond lobbying, incubators and media. In 2017 alone, growth from tech companies such as Facebook, FiscalNote and Rally Health, and new entrants such as Yelp, have generated more than 160,000 s.f. of occupancy gains at Trophy / Class A buildings.
  • Partly due to lack of large block brick and timber creative availabilities, more tech companies have pivoted to traditional office buildings with adequate ceiling heights, access to natural light and column spacing that foster open, collaborative space.
  • With most demographic growth within the city situated in the northeast, southwest and southeast quadrants and 67% of all proposed creative product within those quadrants, we could see a shift back to creative ground-up developments over the next 36 to 48 months.​

Source: JLL Research




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