Northern Virginia Industrial Figures Q4 2025

The Northern Virginia industrial market continues to post strong fundamentals despite lingering economic uncertainty. The market recorded positive net absorption of nearly 226,000 sq. ft. during the fourth quarter, marking the eighth consecutive quarter of occupancy gain. As a result, vacancy decreased to 3.7%. Leasing activity was adequate, increasing by nearly 50% quarter-over-quarter. Average asking rates saw a marginal decline, dipping to $16.52 per sq. ft. per annum on a triple-net (NNN) basis. However, rates are expected to remain near historic highs due to the limited availability of quality space and incoming new construction in 2026.

Northern Virginia recorded moderate development activity during the fourth quarter following a slow year for the development pipeline. As of Q4, 813,000 sq. ft. of industrial space is under construction, with all projects scheduled to deliver in 2026. Developers are now looking at tertiary submarkets near Northern Virginia to develop industrial space, as developable land is in Northern Virginia is scarce, particularly due to competition from data centers.