Northern Virginia Office Figures Q3 2026

Growth continued in the Northern Virginia office market during the third quarter of 2026, with 355,000 sq. ft. of positive net absorption bringing total occupancy gains for the first three quarters of the year to 941,000 sq. ft. This marks the seventh positive absorption quarter in the past eight and pushed the vacancy rate down 40 basis points (bps) to 20.9%, its lowest level since 2021. Vacancy has now declined 180 bps year-over-year.

Leasing activity totaled 1.7 million sq. ft. in Q3, down 48% from the previous quarter, although year-to-date leasing volume remains in line with the historical average. Construction activity remained limited, with only 34,000 sq. ft. under construction in Q3 2026 versus 747,000 sq. ft. in Q3 2023. Asking rents were largely unchanged quarter-over-quarter, with the overall average rate standing at $37.80 per sq. ft.

The combination of improving occupancy, declining vacancy, and limited new supply suggests that Northern Virginia is solidly in a recovery phase as market fundamentals become more balanced