Northern Virginia office market report

Northern Virginia is seeing early momentum in office-to-residential conversions. Out of 70 proposed buildings, 8.57% have either been approved or begun construction. In total, 12.9 million sf of office space is proposed for residential conversion, representing approximately 7.9% of the region’s inventory. This trend reflects growing interest in repurposing underperforming assets, often acquired at a discount due to financial challenges faced by landlords in recent years.

Sales volume in Northern Virginia declined in Q3 2025 compared to the previous quarter. Despite the dip, private investors remain the dominant buyer group, leveraging their ability to acquire underperforming assets at reduced bases without new debt. Opportunistic purchases of lower commodity buildings continue to drive activity in the market.

As of August 2025, Northern Virginia’s office visitation recovery reached 64.8%, surpassing the national average of 61.3%. July saw a notable uptick, driven by renewed return-to-office strategies and seasonal shifts. Despite month-to-month volatility, the region shows a steady upward trend and ranks second among Tier 1 markets, trailing only Manhattan. Northern Virginia continues to demonstrate a resilient and healthy recovery trajectory.