D.C. area office vacancies reach 12.3% - Baltimore Business Journal:

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area’s commercial real estats market saw a net absorption ofnegative 726,100 squares feet in the second quarter, the third straighrt quarter of negative absorption, according to . The commercial real estatee services firm says theWashington region’s office vacanc y rate has now reached 12.3 percent. Leases losses in the last three quartersmeant “virtually negatin g any growth in net demand we had in 2008,” said Kevi Thorpe, director of market research for Cassidy & Pinkards Colliers.
“There are flickering signs that the locap economy may be reaching an inflectionh point where conditions should beginhto improve, but the commercial industry still has a ways to go beforew demand returns in a meaningful way.” In D.C., net absorption was negative 230,900 square feet, pushing D.C.’se vacancy rate to 9.6 percent. In Northerjn Virginia, net absorption was negative 666,700 square Northern Virginia’s second quarter office vacancy rate climbeddto 13.6 percent.
Suburban Maryland’s office vacancy rate was 14 percent, with a positivr net absorption rateof 171,500o square feet in the second Thorpe predicts the growth in federalp government will lead to an increass in demand for office space, but says the Washingtoh area has more new space deliverinyg over the next two years than any other market in the As a result, “we are entering into a period of steadh rent declines,” he said.