DC Office Vacancy Breaks New Record
DC Office Vacancy in 2025: The New High As 2025 closed, Washington, DC office vacancy climbed to a record 20.4%. That puts the city above the national average vacancy rate of 18.6%. Vacancy Spike Signals Disruption The rate rose 50 basis points from Q3 and 100 basis points year over year. Earlier in 2025, the direct vacant available rate was 15.7% in Q2. It then accelerated sharply late in the year. CBRE measured 22.5% in Q4. Annual net absorption fell to negative 1.7 million square feet. Class B buildings bore the brunt, with Class B vacancy rising 250 basis points in Q4. Market Stress Reaches Budgets Leasing and rents Tenants leased 7.1 million square feet in 2025. That was about 10% below the ten year average. District asking rents ended 2025 at $57.19 per square foot, up 1.9%. Empty space continued to threaten municipal revenues. Reduced daytime occupancy also weakened retail spillover near the central business district. Direct vacant available space there hit 19.1% by Q3. What’s...