Market Trends

• Net absorption softened in the second half of the year, reaching about 0.5 million square feet (msf) across Q3 and Q4 combined, compared with 1.7 msf in the first half of the year.
• Vacancies increased for the fourth consecutive year in 2025, although the rate of change was smaller than in past years, suggesting market conditions are starting to stabilize.
• A couple public-sector leases were among the largest deals of Q4 2025, with Montgomery County Public Schools taking 161,855 square feet (sf) in Gaithersburg and the U.S. Secret Service renewing for 106,266 sf in D.C.

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