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Not only are Millennials migrating to the Washington metropolitan region’s urban core, it seems that businesses are, too, in a reversal of the decades-long trend of businesses moving out of the central city to outlying counties.

Vacancy rates have risen in Washington, D.C., due to the contraction of legal services and government contracting tied to federal government spending. But according to commercial real estate firm JLL, private-sector tenants from Maryland and Washington accounted for 300,000 square feet of new leasing activity in the District. Reports Virginia Business magazine:

Doug Mueller, a senior vice president at JLL, noted that the migration is heavily populated by associations, technology companies and professional services firms. “The quality and location of office space with easy access to mass transit, abundant amenities and housing options also has a visible and tangible impact on attracting and retaining top talent,” he said in a statement.

According to JLL’s Office Insight report for the third quarter, since the start of 2014, a total of 21,200 private-sector office jobs have been added to the metro D.C. economy.

In an office market with tens of millions of square feet of space, 300,000 square feet is a rounding error. What’s significant is not the volume of space being occupied — although 21,200 office jobs is nothing to sneeze at — but the trend: jobs migrating back to the urban core. For decades, Virginia enjoyed a huge competitive advantage over the District with its dysfunctional government, poverty, crime and decaying neighborhoods. Now, despite bad schools, high taxes and expensive real estate, D.C. has something that educated Millennials and the businesses that employ them are looking for — walkable urbanism.

Next question: Is this trend unique in Virginia to the Washington metropolitan region or is it occurring in Hampton Roads, Richmond and the smaller metros as well?

— JAB


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2 responses to “Burbs Beware: Office Jobs Moving Back to D.C.”

  1. DC has been on the rise since Anthony Williams was mayor. The nerdy and brilliant Williams put DC on a trajectory for success that even some of the more recent hapless mayors have been unable to destroy.

    It was Williams not Walkability that set the stage for DC’s renaissance.

  2. The fact is that DC is a marvelous place to live and work, for a variety of reasons. Capitol Hill, Cleveland Park, the new NoMa, Adams Morgan are among the outstanding neighborhoods on nearby Metro stops that make D.C. life so much more convenient and enriching than life in the suburbs. Then there’s the Kennedy Center, Arena Stage, along with the museums, that add music and the arts to daily life. The suburbs are like an unfriendly desert in comparison. We worked there for years, and for a few had a downtown department.

    D.C’s city life can be rewarding on many fronts, even with taxes. But of course some of us still prefer farm and rural life when it’s possible. But the burbs? They have their problems. Employers might understand.

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