Northern Virginia Office Market Report
Net absorption for the region totaled negative 444,727 square feet during the second quarter of 2025, leading to a 30-basis-point increase in vacancy over the quarter, to 21.9%. Vacancy is up 90 basis points year-over-year. However, overall availability is down 150 basis points from a year ago, to register 24.2% as of the second quarter. Second-quarter leasing transactions were spread across Northern Virginia submarkets and many large transactions were new direct leases. Large transactions include the Department of Homeland Security lease extension of 76,897 square feet at 4601 N Fairfax Drive in the Ballston submarket. Rents in Northern Virginia averaged $36.29 PSF as of the second quarter of 2025, an increase of 2.2% over the past 12 months. Northern Virginia has not experienced any deliveries over the last three quarters. The market’s development pipeline remains historically low, with only three properties totaling 312,000 SF under construction as of 2Q25.
Download Northern Virginia Office Market Report 2Q25