Sublease supply shrinks in NoVA's top office hubs amid post-COVID stabilization

Sublease space availability in Northern Virginia's largest office submarkets has been declining since Q2 2023. Nearly 1.5 million square feet (msf) have been taken off the RB Corridor, Tysons and Reston-Herndon sublease markets. 

This trend seems to stem from reduced tenant volatility in the post-pandemic environment, fewer incentives for tenants to relocate to newer spaces, and the stabilization of return-to-office initiatives, which has reduced the need for tenant downsizing. As a result, many sublease spaces are transitioning into direct leases, tightening the availability of flexible supply options and potentially driving up sublease asking rates.