Staff Reports
Downtown Washington, D.C., is experiencing what can only be described as an office space apocalypse, as it appears the only thing thriving in the capital these days is the “For Lease” sign business. A report from the real estate firms CBRE Group and JLL reveals that nearly a staggering 25% of all office spaces in the city have been sitting empty. With over half a million square feet of office real estate going unused just between April and June of this year, it looks like much of the building stock is on the verge of resembling the set of a post-apocalyptic movie.
Mayor Muriel Bowser’s office recently put out a not-so-hopeful forecast, pointing fingers at the pandemic for the collapse of traditional office occupancy. Still, one has to wonder if the mayor’s office might also be paying a little too much attention to her virtual meetings, given that less than half of office workers are hitting the ol’ nine-to-five grind in person these days. A security firm, Kastle, has kindly provided this less-than-encouraging data, confirming that workers apparently have found a new office in their sweatpants.
Nearly a quarter of all DC office space is empty https://t.co/maVAESkC36
— Washington Examiner (@dcexaminer) August 6, 2024
Of course, the mayor’s office also emphasized that a whopping 42% of jobs in Washington could be completed remotely. In other words, the legacy of the traditional office building is rapidly becoming as quaint as dial-up internet. With workers happily nestled at home, it isn’t hard to see why there’s little desire for spacious cubicles downtown. After all, why endure morning traffic and crowded Metro stations when you can attend meetings while munching on your favorite snack—all without changing out of pajamas?
Even as concerns mount over the city’s economic prospects, with arguments made that a lack of commuters results in poorer lunch sales and weaker coffers, the silver lining remains elusive. Glen Lee, the city’s chief financial officer, has made waves with the astute observation that not having as many people in the city daily equates to a decline in the “real money” generation. So, if anyone sees a drop in the beloved chili dog sales near the office buildings, they may want to check in on the homebodies calling in sick to work.
Amidst this sea of empty spaces, there’s faint hope for certain buildings. Fannie Mae has changed its mind and decided to stick around Midtown Center despite its previous plans to leave. Carr Properties—handling the Midtown venue—claims that around 90% of its properties remain leased, which is certainly a positive note in an otherwise dismal report. Meanwhile, businesses are getting creative: some are reportedly considering using office spaces with “spectacular views” for weddings, and others are converting space into apartments. Who knew that the remnants of a modern office could be salvaged for romance or as a new apartment in the heart of the city? It’s the kind of twist that might make even the hardest political operative crack a smile.
