Leasing volume surges to a three-year high as defense contractors continue to drive demand
Fundamentals in the Northern Virginia office market continue to recover, as transaction activity accelerates. Quarterly leasing volume in Q4 2025 and full-year leasing volume in 2025 both reached their highest totals in three years, at 3.1 million square feet (msf) and 9.0 msf, respectively. Across 2025 the total availability rate declined by 340 basis points (bps) to 22.1%, the sublet market declined by 1.1 msf, and average asking rents increased by 3.9%. Leasing volume was propelled by several transactions that ranked among the market’s largest of the last few years. Deloitte converted its sublease to a direct lease and expanded at 1919 N Lynn Street, while the National Science Foundation and Booz Allen Hamilton signed notable relocations. Transaction count also hit its highest quarterly total of the 2020s.