Leasing volume declines slightly, but fundamentals continue to stabilize
At 1.8 million square feet (msf), Northern Virginia’s leasing volume in Q3 2025 declined for the second consecutive quarter and fell 25.0% from Q3 2024. While the number of transactions over 30,000 square feet (sf) remained relatively consistent with previous quarters, there were fewer smaller leases. Despite the transaction slowdown, other market dynamics continued to strengthen. Availability rates declined for the third consecutive quarter to their lowest level since 2020. A combination of space taken off-line for conversions and a slower pace of new listings contributed to the declining availability rate. Sublease supply also declined by roughly 1.5 msf over the last year. Flight-toquality trends continued, with Class A accounting for about 75.0% of leasing volume in Q3 and recording 4.5% year over year rent growth.