Legal sector activity boosts leasing volume, as the market inches towards a recovery
The Washington D.C. office market appears to be past its trough, but continued economic uncertainty is stifling the pace of the recovery. Availability rates have compressed for three consecutive quarters since reaching a cyclical peak of 24.4% in Q3 2024, but are essentially flat year over year. Leasing volume totaled 1.8 million square feet (msf) in Q2 2025, which was in-line with each of the last two quarters, but just below the five-year quarterly average. Class A space accounted for nearly 80% of market leasing last quarter, and trophy properties have especially tight availability rates.