Average lease sizes for Trophy/Class A offices rise amid broader market contraction in Northern Virginia

Tenants in lower-tier or commodity office buildings in Northern Virginia are still actively reducing their footprints, driven by hybrid work models and cost-efficiency goals. This trend reflects a broader market shift toward leaner operations and more strategic space utilization. In contrast, Class A and trophy buildings are experiencing a resurgence in average lease size, up 7.1% from last year. Tenants seeking premium amenities, better locations, and modern infrastructure are committing to larger spaces, often to support collaboration and talent attraction. The Northern Virginia office market is bifurcating, while overall average lease sizes may have shrunk by 12.7% from 2024, the demand for quality space is pushing up lease sizes in top-tier buildings, signaling a selective recovery rather than a uniform one.