A midyear international office market survey conducted by The Office Network shows that the greater Washington area office market continues to grow but at a much slower pace than it has in the recent past.
Ranked sixth in the nation in net absorption, the region recorded an increase in occupied office space of 1.5 million square feet for the first half of this year.
In the survey, which presents midyear figures from 49 markets -- 36 in the United States, two in Canada and 11 in Western Europe -- the national average for uncommitted space in existing office buildings dropped slightly to 19.3 percent, down from 19.5 percent at the end of last year.
The Washington area remains well below the national average vacancy levels with 15.7 percent of office space in existing buildings currently on the market. This figure placed the region seventh among the U.S. cities surveyed.
"While these numbers indicate that our market has slowed its rapid rate of growth, they also confirm that the region remains one of the strongest office markets in the country," said James L. Eichberg, president of Smithy Braedon, the local Office Network company and a contributor to the report.
There is currently half as much new office space under construction in the Washington suburbs as was reported a year ago. The amount of space under construction in the entire region dropped 26 percent from midyear 1989, an indication that the market is moving toward a more balanced relationship between supply and demand.
Smithy Braedon is a leading full service commercial real estate company with offices throughout Washington, D.C., Maryland and Virginia.