Northern Virginia Office Market Report
Net absorption for the region totaled 65,833 square feet during the first quarter of 2025, leading to a 10-basis-point decline in vacancy over the quarter. Overall vacancy decreased to 22.3% but is up 120 basis points from a year ago. However, overall availability is down 40 basis points from a year ago, to register 25.3% as of the first quarter. Major first-quarter leasing transactions were spread across Northern Virginia submarkets and the largest transactions were new direct leases. The largest was FDIC鈥檚 lease of 171,000 square feet at 3701 N Fairfax Drive in Virginia Square. Rents in Northern Virginia averaged $35.57 PSF as of the first quarter of 2025, an increase of 1.7% over the past 12 months. Northern Virginia didn鈥檛 experience any deliveries in the first quarter of 2025. The market鈥檚 development pipeline remains historically low, with only three properties totaling 312,000 SF under construction as of 1Q25.