Northern Virginia Office Figures Q1 2026

With the national office market in the early stages of recovery, Northern Virginia continued to improve following the deep contraction since the start of the pandemic. In 2023 alone, occupiers shed about 2.7 million sq. ft. Momentum began to improve meaningfully in 2025, posting 673,000 sq. ft. of positive annual net absorption, and Q1 2026 added another 217,000 sq. ft. of occupied space. This sustained run of positive absorption pulled the vacancy rate down to 21.8% in Q1 2026, a 30 basis‑point (bps) decrease quarter‑over‑quarter and 80 bps below Q1 2025.

The development pipeline has contracted sharply over the past few years. Only 35,000 sq. ft. remained under construction in Q1 2026 and there were no new deliveries in the past 12 months, limiting new supply pressure. Asking rents were resilient, with the average rate at $37.49 per sq. ft. in Q1 2026, essentially flat versus both the prior quarter and prior year. Together, modest but ongoing occupancy gains, declining vacancy, and a very thin construction pipeline indicated a market that had moved past its recent correction and was stabilizing on firmer fundamentals.