With 63,000 sq. ft. of occupancy growth in Q3 2019, Capitol Riverfront posted a 300 basis point (bps) decrease in vacancy over the prior quarter to 7.5%—the lowest vacancy rate of all submarkets in the District.
Drawn to D.C. not only by its proximity to lawmakers, tech firms are also increasingly attracted to the market by its robust and growing tech talent pool. Aside from coworking, the tech sector has been D.C.’s biggest driver of occupancy gains since Q1 2018 with 500,000 sq. ft. of positive absorption, of which 103,000 sq. ft. was registered in Q3 2019.
Novel Coworking, an Austin, TX-based coworking provider, purchased 1201 Connecticut Avenue, NW as its first location in D.C. This is the second D.C. building purchased by a coworking operator, following WeWork’s acquisition of 1333 New Hampshire Avenue, NW through a JV with The Meridian Group in Q4 2018.