Washington, DC office market report

Q4 2025

The DC office market ended 2025 with steady fundamentals amid strategic repositioning for some assets. Trophy and Class A offices again led leasing volume and commanded premium rents as concessions tightened. Availability held at 24.7%, with asking rents averaging $59.92 psf. Domestic investors dominated acquisitions, while office-to-residential conversions accelerated, targeting 3.7 million square feet of obsolete space. Office Busyness reached 70.5% of pre-pandemic levels, second only to Manhattan, signaling continued momentum.

-38.3 %

Year-over-year change in total square feet leased

2025 saw 350 leases signed over the course of the year, totaling 5.5m sf leased, a decrease in square footage leased by over one third compared to the year prior. Trophy & Class A accounted for almost half of all leasing volume in 2025, despite making up only one third of market inventory.

155 mos

Average term length of larger Trophy & Class A leases

Over the past decade, occupiers who have leased more than 20,000 sf in Trophy and Class A buildings have consistently committed to longer average lease terms. In contrast, Class B and C properties have experienced a notable decline in average lease length over the same period.

3 %

DC office buyers outside the US in 2025

Cross-border office investment has fallen sharply, especially when compared with the previous five-year average, in which international buyers accounted for 30%. Institutional and private buyers have increased their share as a result of the decline in international investors.

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