Our 2024 Mid-Year Market Report looks at how market forces have shaped development trends throughout Alexandria, Virginia through June 2024. Overall, challenges could be on the horizon, as the economic outlook for the entire region has shifted from stable to uncertain.
- Northern Virginia’s office development pipeline remains historically low, with no deliveries and no new office projects breaking ground in all of 2023.
- The rising cost of construction, combined with a shift to hybrid work, has affected numerous projects. Construction spending has been affected by inflation and increased labor costs, materials costs, insurance rates, and permit costs.
- Alexandria’s strength as a national leader in office conversions offers opportunities to provide for community needs and amenities such as schools, hotels, senior housing, and affordable housing.
- Office leasing growth continues to decline post-pandemic as employees demand remote or hybrid work.
- Retail real estate is faring better than the commercial market.
Alexandria By the Numbers
While Alexandria offers an attractive option with continued daytime vibrancy to tenants who are looking for space, large tenants are reducing their footprints. Office leasing activity remains slower than historic norms as businesses are rightsizing in place and/or trading up in quality, but our vacancy rate as of June 2024 remains strong compared to 20.8% for Northern Virginia overall.
- Vacancy Rate: 15.5%
- Net absorption: -294,700 square feet
- Inventory: 20.8 million square feet
Download the full report for more information on local and regional office and retail trends.