Washington DC Office Figures Q1 2026

The market remained in a prolonged correction through Q1 2026, with vacancy at 22.6%, up from 14.1% at year‑end 2019. However, the market has shown signs of stabilization, as the vacancy rate has remained flat since Q3 2024. Inventory removal for conversion or redevelopment to alternative use has helped counteract occupancy loss over the last year, as has inventory removal for user-purchases. Much of D.C. market vacancy is in obsolete or near-obsolete former GSA leased buildings.

Fundamentals are aided by a lack of new construction activity. The construction pipeline that once exceeded 7.0 million sq. ft. in 2018 was reduced to zero by Q1 2026. Two projects are planned for delivery between 2028 and 2031, but both are near fully preleased ahead of construction and will not add available supply to the market.