Mid Atlantic Research Reflections 2023 Technology

The D.C. metro region is a top U.S. market for tech talent, ranking fourth in CBRE’s 2023 Tech Talent Report. Greater Washington has a large concentration of young tech professionals, a notably high percentage of women in tech, and offers some of the most competitive salaries in the nation for the industry, while successfully maintaining a strong level of overall diversity within its workforce.

Northern Virginia remains the stronghold for tech tenants, capturing 80% of technology leases signed across the region in 2023. Despite leasing levels on pace with 2022 activity—currently at 2 million sq. ft.—activity resulted in 620,000 sq. ft. of occupancy loss as large tenants contract. Additionally, technology tenants remain one of the largest contributors to sublease availability, driving negative absorption across the region.

Technology tenants have added more than 820,000 sq. ft. to the sublease market in 2023 and currently account for nearly 25% of all available sublease space. While overall sublease availability is elevated 75% across the D.C. metro, it is less severe than other top tech markets like Seattle and San Francisco where availability is elevated 218% and 101% from pre-pandemic levels, respectively.