Nearly 80% of GSA lease cancellations in NOVA hit Class B buildings

All GSA lease cancellations in Northern Virginia have occurred in holdover, soft-term, or leases approaching soft-term status later this year or in 2026. In total, six leases representing 1.6% of the region’s GSA-leased inventory have been cancelled. Notably, 90% of the square footage involved was in holdover, largely due to the Department of Homeland Security’s relocation from 1616 N Fort Myer Drive.

Additionally, 77% of the cancelled leases were in Class B properties, underscoring the ongoing pressure on commodity buildings across the DMV. While Northern Virginia accounts for just 18% of the total GSA lease cancellations compared to downtown D.C., the region currently has approximately 760,000 square feet in holdover and another 2.16 million square feet approaching soft-term by the end of 2026 leaving a possibility for more leases to be terminated.

To explore more leasing trends across federal agencies, visit our new Federal Property Pulse dashboard.