The Northern Virginia market started the year strong with 770,000 sq. ft. of positive net absorption during the first half of 2020. However, this was negated by the 909,000 sq. ft. of occupancy loss that occurred in the second half of the year.
Leasing activity totaled 7.9 million sq. ft. in 2020, down 22% from the five-year annual average. Nonetheless, the tech sector remained active, contributing 2.8 million sq. ft. of leasing activity which was in line with 2018-2019 levels.
Reston was the most active submarket during the year with the deliveries of two buildings totaling 468,000 sq. ft. at 80% preleased, and several sizable tech leases by tenants such as Microsoft and CACI.