Northern Virginia office market reports

Q4 2023

Through the end of 2023, the Northern Virginia office market is still trying to achieve the sales and leasing velocity from pre-pandemic times, a common theme among other markets around the United States. Buyers and sellers continue to be fundamentally disconnected, and in addition to rising interest rates, this has caused suppressed investment volume and general uncertainty as it relates to the future of office utilization. For investment activity that has occurred this year, there has been a noticeable rise in owner-occupier sales, with 38% of buyer profiles deemed as user sales. There has been a rise of sublease space on the market, with many companies giving back space due to a decreasing demand of physical office space, partially fuelled by remote work and downsizing of tenant’s office space. Looking forward into 2024, the Northern Virginia market will continue to evolve. Proposed developments, such as Monumental’s proposed site for the Wizards and Capitals, can help spur ancillary development.

81.2 mos

Average length of term

As companies are continuously reevaluating their physical office footprint, companies that have signed leases in the past quarter are signing for longer periods of time.  Albeit, this is coupled with many companies downsizing their office space, longer terms show the tenant’s commitment to their office space.

46.9%

Percentage of leases signed for less than 6000 SF

The office market for Northern Virginia has seen a consistent trend of downsizing for tenants in their office landscape. In this past quarter, leases less than six thousand square feet have accounted for almost half of the leasing velocity in the area; a trend that has stayed consistent throughout 2023 in Northern Virginia.

21.5%

Vacancy in buildings <1/4 mile from a metro station

Over the past few years, Northern Virginia has seen an emphasis on office developments that are accessible to metro/rail stations. However, buildings that are closer to these metro stops have seen higher vacancy rates on average versus their counterparts who are a further distance from a metro station.

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Your source for the latest Northern Virginia office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Washington, DC Metro area. Avison Young advisors look at Northern Virginia commercial real estate activities and the latest Northern Virginia statistics to provide you expert market research on Northern Virginia's office properties.

Explore different topics like the latest office market pricing trends and analysis of Northern Virginia's current office real estate market conditions. Gain a better understanding of Northern Virginia’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Northern Virginia's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Northern Virginia.

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