Leasing matches last year’s total, as fundamentals continue to stabilize
Despite economic headwinds and federal spending cuts, fundamentals in the DC office market stabilized throughout 2025. Leasing in Q4 2025 totaled 1.9 million square feet (msf), matching the previous quarter and bringing the full-year volume to 7.2 msf—also in line with last year’s total. Availability rates steadily compressed throughout the year, but only by a total of 50 basis points (bps). The top of the market has made a more momentous recovery, with trophy buildings finishing the quarter with a 13.7% availability rate, down by about 700 bps from two years ago. With few new development projects in the pipeline and sustained demand for trophy buildings, pressure at the top of the market is likely to spill over into well-located, lower-tier assets.