Washington, DC office market report

Q2 2025

In Q2 2025, the DC office market marked its first sustained reduction in availability since the pandemic, with a 30-basis-point year-over-year decline driven by decreases in both direct and sublet space. Trophy and Class A assets continued to outperform, capturing a disproportionate share of leasing activity relative to their inventory. Investment sales also rebounded, with average pricing reaching a two-year high and volume hitting a three-year high. Despite ongoing GSA lease cancellations, as tracked in Avison Young’s Federal Property Pulse, the market’s premium segment remains , underscoring investor and occupier preference for high-quality space.
6.9 %

Class A leasing as a percentage of inventory of the last year

Both Class A and Trophy properties are seeing a larger proportion of leasing over the last twelve months in relation to their respective building inventories when compared to Class B/C properties.
-30 BPS

Year-over-year change in total availability rate

As of Q2 2025, DC has seen the longest period of availability stabilization since the pandemic, with availability decreasing 30 basis points since Q2 2024. Direct and Sublet space alike saw decreases.
$307 psf

12-month average office sale price

DC has seen a rebound in investment sale prices and volume, rising 31% compared to last quarter’s $234 psf average. The 12-month average psf price was the highest level seen in two years, and the average sale volume set the high-water mark for the last three years of sales.

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