Over the past few years, the state has been experiencing a slight downturn following the government sequestration and BRAC. Its vacancy rate on the office market has grown up to 20%, which is high above the national average. Yet, experts predict that it will be soon filled given the local market that consists of 1.5 minion jobs, the majority of which are office-residing. Asking rents might increase up to $35 per sq.ft. After a slight downturn, Virginia's commercial lease is experiencing a revival. The stats show the sudden increase of the private sector headquarters over the past five years, which contributes to the creation of a diversified local economy without the monopolistic tendencies. At the same time, the state is still a magnet for the ventures willing to work with the federal government. Therefore, Virginia’s commercial space leased by BRAC is filling in slowly, yet steadily. Due to Amazon's establishing of the HQ2, the experts assert that the local market might keep up with the demand for Virginia’s commercial properties and fail to satisfy the requests related to the housing affordability for both locals and newcomers. The market demand for the multifamily units has been slightly met by the new developments in Tysons, Arlington, and Southeast Washington. Powered by the favorable state housing policies, the region is likely to unwind its potential and grow into a full-scale economy.
