Washington, D.C. Office Market Report

Regional demand headwinds muted. Entering 2026, the desire for upgraded space is evident in how some of the metro’s existing tenants are seeking new offices within the market. IT services contractor CACI moves into a newer, similarly sized office in Reston this spring. Homebuilder NVR, Inc. will move into a new space in Reston as well, while Geico is shifting from Chevy Chase to Bethesda. Class A properties should benefit from this, as well as another year of limited new supply. Two office-to-residential conversion projects in Crystal City will also remove 600,000 square feet of office stock. Meanwhile, the metrowide Class B/C vacancy rate near 13 percent in January sits within 100 basis points of the national level. In the District of Columbia itself, where the segment rate ended 2025 closer to 15 percent, net absorption grew year-over-year. As tight apartment vacancy highlights the growing attractiveness of the core, employers may seek convenient workspace. These trends suggest a slight decline in vacancy for the metro overall.