Northern Virginia Office Figures Q4 2025

The Northern Virginia office market continued to show signs of positive momentum during the fourth quarter, posting nearly 395,000 sq. ft. of positive net absorption, which is the highest occupancy gain the market has seen since 2019. This also marked four out of the past five quarters with positive net absorption. This brought 2025 annual absorption to +480,000 sq. ft., which is a significant recovery following five consecutive years of occupancy loss.

Occupancy gain and continued office-to-residential conversions pushed vacancy down 50 basis points (bps) quarter-over-quarter, now at 22.4%. While still elevated from the historic norm, vacancy is down from peak levels posted in 2024. Further, vacancy is largely concentrated in commodity space.

Q4 marked a second consecutive quarter of increased leasing activity, with 2.4 million sq. ft. leased. This brings the annual total to 7.7 million sq. ft. for 2025, headlined by a few, large deals near the end of the year. Leasing activity took a dip at the beginning of 2025, likely due to uncertainty in the market, but is gaining momentum as we move into a new year.