Report a Comment

The Districts commercial office rents have always been higher, substantially higher than the neighboring burbs, even through the late 80's and 90's when District vacancy rates were higher than those in the burbs. Traditionally had more to do with the cost of land than the vacancy.

As it stands, DC’s vacancy rate for commercial office is 12.5%. In FFX it is slightly higher at 14%. DC’s has jumped from 10 to 12.5 in the past year while FFX’s only jumped 1% even though they had twice the new inventory come out of the pipeline meaning their absorbsion rate is far greater than the Districts. Translated…more companies have been choosing to set up shop in VA the past year (past decades really) than the District.

Yes, there are businesses, and ancillary federal contractors (who charge the taxpayer for the privilege) who purposely choose to be in the District and accept the additional cost of business to do so, but there are many, many more who don’t.

That mixed in with corporate taxation, the worst schools in the nation etc make DC a very hard sell which is why DC has to be far more targeted and serious about who it tries to lure to town.

by Subsidy on Jun 21, 2012 1:36 pm • link • report