Availability rates compress for the fifth consecutive quarter
Northern Virginia’s availability rate has compressed for five consecutive quarters and by 440 basis points (bps) since peaking in Q4 2024. At 21.1%, the market is not only comfortably past peak availability but is also in line with its pre-pandemic norms. Following the record-breaking totals of Q4 2025, leasing activity was measured in Q1 2026, but demand drivers are still carrying positive momentum thanks to strong return to office trends and a rejuvenated defense contractor industry. Conversions have taken obsolete space off the market, while available sublease space has fallen to its lowest total since the first half of 2020. Improved fundamentals have supported strong rent growth, with asking rates up by 3.9% overall and 5.6% in Class A inventory over the last 12 months.