Class A takes the lead: Shifting demand in DC’s office market
Class A overtakes Trophy leasing in the last 12 months, both outperform Class B & C
In Q2 2025, Class A offices leased 2.2% of their total 35.4 million square feet inventory, while Class B & C leased just 1% of it’s 89.7 msf inventory. Since Q4 2019, Trophy consistently leased the highest proportion of its respective inventory (9.8 msf), but, starting in Q3 2024 continuing through to today, Class A has overtaken Trophy in leasing performance.
Leasing as a proportion of inventory gives an apples-to-apples comparison of how well different asset classes are leasing in respect to one another. Class B & C may have the highest gross leasing metrics, but when compared to how much more inventory there is to be leased in those asset classes, we understand it’s underperforming relative to the higher quality offices.
As Trophy enjoyed success leasing up its smaller inventory, it now has limited available space left to lease. Class A has emerged as the next best option in the DC office market, with demand having firmly swung in its favor in the last twelve months. Class B & C continue to struggle with tenants’ preference of high-quality space.
