Finding commercial real estate properties in DC doesn’t have to be difficult. You can use real estate professionals to identify the best time to buy, the hottest locations, and the most lucrative investments for your startup company to be a success.
Washington DC Real Estate Market
Before you can find the ideal commercial property for sale in Washington, DC, that ticks all of the boxes for your company’s requirements, knowing more about the real estate market is crucial to making good decisions. Understanding the current real estate listings, most popular areas, average prices, and whether it is a buyer’s or seller’s market can help you identify the best investment.
Washington, DC, home prices have risen nearly 10% since last year. Homes in this district are selling on an average of 48 days on the market compared to 42 days last year. In July alone, nearly 600 houses were sold in this district.
The economy is currently experiencing a boom in commercial real estate in Washington, DC. Many retail spaces and commercial properties are on the market for those interested in purchasing or renting a DC office for their remote company or choosing an industrial location for a startup business.
No matter the reason, the booming market means that the availability and demand for commercial properties continue to rise in the country’s capital. The consistent availability of office spaces and the demand for commercial real estate in DC can be attributed to the city’s flourishing economy.
However, two things to keep in mind when it comes to finding commercial real estate in Washington, DC, are that the supply will continue to decline and the rental rates will continue to increase. The city only has so much space, so the high demand for commercial spaces means the supply will run out quickly. Strict zoning laws and a lack of usable land also contribute to the limited property supply.
Furthermore, commercial space rental rates continue to increase, which could make it harder for new businesses and startups to secure the capital needed to put down deposits to rent or purchase commercial properties.
Benefits of Renting a Commercial Space in DC
There are numerous reasons why renting commercial space in the United States’ capital can benefit your business. DC is a bustling city with a lively center, historic buildings, and thriving culture, and its ever-strong economy is a promising sign for new businesses.
- Diverse economy — Multiple sectors for extra variety.
- Government agencies — Provides a more stable and long-term source of commercial properties for rent
- Rental rates — The higher rental rates are a good thing for property owners looking to purchase a commercial space and then lease it to small business owners.
Frequently Asked Questions
How Much is Commercial Rent in DC?
Furthermore, commercial office asset value is estimated at around $478 per square foot in 2023, decreasing by nearly $30 since the previous year. The highest value was in 2014, when it reached $678 per square foot. In the last decade, the value per square foot has decreased by $200.
Washington, DC, has approximately 650 taxable commercial office buildings worth over $10 million. These taxable office buildings comprise over 40% of the city’s property taxes. But, between 2020 and 2022, there were only 16 sales of buildings that fall within this category — significantly reducing the property tax value.
The reduction in sales means that the value of commercial real estate properties in DC will continue to decline. Studies have shown that the price per square foot is around $314, which is half the price at its highest.
What is the Value of Commercial Property in DC?
Commercial values totalled more than $101 billion in 2023, $1.7 billion lower than the end-of-year total in 2022. The year-over-year decline is minimal compared to the previous year when the value of commercial properties in DC decreased by $10 billion from 2021 to 2022.
Use Nestfully to Find DC Commercial Real Estate
With Nestfully, you can rent or buy DC commercial real estate to kick-start the business venture of your dreams. Use our online resources to explore communities, identify market trends, and browse current available commercial homes all around DC.
We currently have properties for sale in Washington DC, providing you with a wide variety of properties that can meet your unique needs. Whether you want a large industrial space right in the heart of the 20006 zip code, or you would rather find a retail store in nearby Arlington, VA, we have endless choices.
Find Commercial Property for Sale in Washington DC by City