Northern Virginia Industrial Figures Q1 2026

To open the new year, Northern Virginia’s industrial market recorded net absorption of 39,000 sq. ft., down from 226,000 sq. ft. in Q4 2025. Year-over-year, net absorption is down about 86% as tight market conditions dictate activity. Vacancy was just 3.7%, unchanged quarter‑over‑quarter and 50 basis points below the 4.2% rate a year earlier. The market’s vacancy rate has trended downward since Q4 of 2023.

On the supply side, no new projects delivered during the quarter, and the construction pipeline stood at 813,000 sq. ft., the same level as Q4 2025 and up from 510,000 sq. ft. year-over-year. That said, multiple projects are expected to deliver next quarter. The average asking rate was $16.88, an increase of $0.17 year‑over‑year.