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National Landing's Q4 2023 Market Snapshot

By Ashley Labadie

A Strong End to 2023

2023 was an exciting time in National Landing – a year of positive, yet stabilized trends. Amazon opened its two-million-square-foot headquarters at Metropolitan Park; The Milton’s arrival brought almost 260 new apartments to Pentagon City; and Water Park, Surreal, and Makers Union put National Landing on the map as a top culinary destination in the region. Most importantly, the year’s positive end proves National Landing’s resiliency since the pandemic in an uncertain and evolving market.

Let’s take a closer look at the trends and development patterns over the last few months that are shaping the future of National Landing.

Office trends in National Landing

Office vacancy in National Landing decreased in 2023 and stabilized by year’s end at 24%. While office vacancy remains high, the patterns we’re seeing in National Landing aren’t unlike trends impacting other central business districts, where the highest-quality office space has lower vacancy rates and more positive leasing activity compared to aging buildings in less amenitized areas. Increasingly, new office space and office improvements in National Landing, like those seen at the newly renovated Crystal & Clark, prioritize worker comfort and access to both practical and interesting amenities. With many of our district’s top employers opting for three-day-a-week return to office policies, we’re seeing a nearly 20% increase in daytime workers compared to the end of 2022 — an increasingly promising trend that supports businesses and increased vibrancy in our downtown.

Thousands call National Landing “home”

New and rebranded residential buildings, including The Milton which opened in summer 2023 and the Quimby on 23rd Street (formerly the Buchanan), have been well received in National Landing. Overall, multifamily occupancy reached 94% by year’s end even with a growing supply of apartments. Average monthly rental prices have increased at the newest buildings in our district, while rent prices have stabilized in older buildings or those with fewer amenities. With demand outpacing supply, the arrival of nearly 1,300 new units at Grace and Reva on Crystal Drive and Hazel and Azure in Potomac Yard in 2024 and approximately 800 more in 2025 along S. Bell Street will be welcome additions to the district.

Visitors love National Landing, too 

Our one-square-mile district remains a popular destination for visitors with access to an array of attractions, events, and affordable hotels. After seeing its highest post-pandemic occupancy in summer 2023, overall hotel occupancy slightly decreased by year’s end following historic seasonal trends. That said, National Landing’s hotel market has successfully returned to pre-pandemic levels and welcomed numerous conferences and events in 2023, including the 81st Annual Meeting of the American Society for Aesthetics hosted at the fully renovated Hilton Arlington National Landing

Brick-and-mortar retail in National Landing

New retailers and eateries, like Surreal and Makers Union, opened in December 2023. Although foot traffic in our district remains slightly lower than before the pandemic, more workers in offices, more residents, and more visitors will contribute to more spending at our local businesses. Coupled with attractions and open space improvements, National Landing’s existing and future brick and mortal retail is poised to benefit. We’ve already seen evidence of this transformative approach. Water Park on Crystal Drive – the world-class outdoor food hall that’s unlike anything else in the region – welcomed roughly 60,000 visits between its opening in October and year’s end.   

What’s next for National Landing?

While the market cools following a season of high interest rates, inflation, and development costs, we can anticipate 2024 to be another banner year in National Landing. Bar Chinois, Colada Shop, Nailsaloon, Peachy Studio, Tatte Bakery and Café, Van Leeuwen Ice Cream, and Bar Colline are set to join the lineup at 1900 Crystal Drive in the heart of National Landing by summer 2024, and Lantern Bar and Grill will be a welcome addition to the 23rd Street corridor.

Reach out to Ashley Labadie, National Landing’s Planning & Economic Development Senior Manager, for detailed market inquiries and check back here for upcoming quarterly market updates. Also, be sure to follow us on social media for the latest announcements and news about National Landing.