Leasing activity rebounds in second quarter after slow start to 2022

The Northern Virginia market showed a significant rise in leasing activity in Q2 ending the quarter at 2.7 million square feet (msf). This massive 59.9% increase in total office leasing quarter over quarter is the first time since the start of the pandemic that the leasing activity has surpassed the 5-year leasing average of 2.5 msf. This jump in leasing activity is due to a few key government agency renewals most notably the Department of Defense signing at 2530 Crystal Drive for a total of 558,187 sf. Along with this renewal, Government tenants continue to drive demand in the market and totaled 36.0% of all leases for the quarter. The driving industry for net new leases in the Northern Virginia market continues to be the technology, advertising, media and information (TAMI) sector. In Q2, the TAMI sector made up 52.0% of all net new leases spurring much needed growth to the market.

Read the full report