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EDGE Commercial Real Estate Discusses Current Market Trends & Predictions for Future Market Trends, in the Washington, D.C. Area


Tysons Corner, VA – It’s no surprise that tenants are controlling the commercial real estate market. This will probably be the case for at least the next two to three years, unless something dramatic occurs. We have not seen a strong Landlord’s market since the late 90’s, and for the past eight years it has remained relatively flat.

A highly recognizable trend is the enormous emphasis on amenities. Companies are seeking “quality of life” for their employees, to be intertwined with their work. They desire fitness centers, shopping areas, close proximity to multiple food genres or an on-site food service. Many mixed-used developments have recognized this increased interest in amenities, and have been extremely successful in attracting some larger tenants, who are willing to pay the higher rents. One major obstacle in getting deals done today , is a tenant’s fear of commitment to term. Understandably, tenants want flexibility, so they try to figure out how to engineer that into a transaction. Additionally, Tenants who are signing off on longer term deals (10 plus years), are finding that due to the escalation structure, by the time they are approaching the end of their lease, they are paying significantly higher than where the market stands. To combat this, Tenants are seeking more flexibility with flatter rent structures and early termination options. While these additional terms and conditions can be obstacles to Landlords, because we are currently in a “Tenant’s market”, Landlord’s will continue to do everything in their power to maintain and increase occupancy.

ABOUT EDGE COMMERCIAL REAL ESTATE EDGE Commercial Real Estate is a locally-owned commercial real estate advisory, management and investment company. The firm’s entrepreneurial approach has enabled EDGE to deliver superior results to its clients and partners. The EDGE executive team possesses nearly 180 years of combined commercial real estate experience and a proven track record, including many of the Washington Metropolitan area’s most noteworthy transactions. Currently, the firm manages and leases more than 8.4 million square feet of commercial space throughout the region. For more information, visit www.edgecre.com.

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