Market Trends

• Vacancy rose slightly from Q4 2024 after strong net absorption to start 2025, supported by the delivery of Buildings C and D at Amazon’s Quail Ridge Data Center, totaling 550,000 square feet (sf).
• The Washington, D.C. industrial market faces minimal vacancy risk from speculative construction fueling upward vacancy, as 61.0% of the 3.6 million square feet (msf) pipeline consists of build-to-suit projects, mostly data centers.
• Despite the exposure to data center development, there is still appetite for Class A warehouse product, evidenced by DB Schenker signing the largest lease of the quarter at the speculative Prologis West Distribution Center.

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