After great anticipation, Amazon’s decision to house half of its HQ2 in Crystal City—and the expected creation of 25,000 jobs and 4 million sq. ft. of office space demand—signals a significant impact on the region’s real estate markets and overall economy in the coming years.
Northern Virginia has experienced six consecutive quarters of occupancy gains—the longest stretch of growth since 2010—for a total of 1.2 million sq. ft. Subsequently, vacancy is down 60 basis points from its peak of 20.9% in 2017.
Investment sales volume ended the year at $2 billion. Foreign capital has become more active in the market, accounting for 33% of total investment activity in 2018, up from 14% and 15% in 2016 and 2017, respectively.