- Overall Direct Vacancy Holds Steady:
Direct vacancy across Washington, D.C. remained relatively flat in Q1 at 20.0%, as modest leasing activity and continued move-outs largely offset one another.
- Trophy and Class AA Assets Continue to Lead:
The market’s top two asset classes remain the strongest performers, posting vacancy rates of 11.6% and 16.5%, respectively, as tenants continue to prioritize best-in-class buildings and amenities.
- Premium Rents Continue to Climb:
Limited availability at the top of the market is driving upward pressure on rents, with premier trophy space increasingly pushing into the $100+ PSF NNN range.
- Capital Markets Gain Momentum:
Investor activity continues to build, with renewed interest in high-quality assets signaling growing confidence in Washington’s office market fundamentals.
- East End Leads Quarterly Absorption:
The East End delivered the strongest submarket performance in Q1, recording 171,044 SF of positive net absorption, supported by major renewals, expansions, and continued supply reduction through conversions.
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