Washington DC Office Figures Q4 2025

Washington, DC experienced occupancy loss in Q4 that pushed vacancy upwards 10 basis-points (bps) to 22.5%. Occupancy loss was overwhelmingly concentrated in the Class B market, where vacancy increased 250 bps in Q4. Overall, the city’s vacancy rate ended 2025 flat year-over-year, aided by inventory removal for redevelopment or conversion to alternative use, as well as a slowdown in federal government lease contractions in the second half of the year.

Tenants leased 7.1 million sq. ft. of office space in 2025, 10% below the ten-year historical average but reflecting resiliency despite significant regional economic uncertainty. The Class A+ segment of the market performed well, with notable leases including Bracewell’s 53,250 sq. ft. extension at 2001 M Street NW, the National Cable and Telecommunications Agency’s 53,000 sq. ft. renewal at 25 Massachusetts Avenue NW, and Buchanan Ingersoll’s 52,760 sq. ft. renewal and expansion at 1700 K Street NW.

A more stable economic outlook should benefit D.C. in 2026. Among private sector tenants actively looking for space, there is 474,000 SF of expected occupancy gain, aided by several new-to-market tenants and significant planned expansions. With Trophy vacancy remaining low at 10.7%, additional private sector growth should trickle down into Class A+ and well-capitalized Commodity A properties.

600 5th Street NW, Rockefeller Group and Stonebridge’s Trophy redevelopment of the former WMATA headquarters, delivered in Q4 2025 and is half-leased to Crowell & Moring. This represented the first office delivery in Washington, D.C. since Skanska’s 17xM in Q2 2024, which is now 90% leased.