Northern Virginia Market Report Q3 2019

Northern Virginia’s (NoVa) office market continued exhibiting above-average strength in the third quarter (Q3) of 2019. Total absorption was recorded at 513,950 SF, which marks the fourth consecutive quarter of meaningfully positive net absorption in the region. Furthermore, year-to-date absorption has reached nearly 1.5 million SF. Vacancy has been trending down across all building classes, with total vacancy reaching 17.6% in Q3.

Leasing activity was strongest in Fairfax County, where year-to-date occupancy growth has been positive in all but one office submarket (Reston). While NoVa’s suburban markets had been falling out of favor among tenants in the early 2010’s, recent infrastructure investments (Silver Line), and mixed-used development activity have sparked new demand in submarkets along I-66 and Route 28.