The vacancy rate for office space in the Washington, D.C. metropolitan area fell 20 basis points in the first quarter from the end of 2024.
The rate now sits at 17.8 percent, according to a report from Lincoln Property Group.
The drop comes as the Trump administration begins to shed federal office space, likely to impact the capitol region the most for the rest of the year.
In the first quarter, leasing activity was flat, at 4.5 million square feet. The market also absorbed -221,166 square feet of space.
The top lease signed in the first few months of 2025 was McDermott, Will & Emery’s pre-leasing of 151,300 square feet at 725 12th Street, NW. Freshfields also inked a deal for more than 117,000 square feet of space at the Midtown Center, located at 1100 15th Street, NW.
Meanwhile, office sales volume plunged more than 47 percent quarter over quarter to $738 million. Still, inventory is stable, the firm noted: there are four buildings totaling almost 577,000 square feet under construction in the region.
The priciest sale was in April, of the Capitol Plaza I at 1200 1st Street, NE, for about $119 million. The buyer was Easterly Government Properties, and the seller was Principal Real Estate Investors.
Here are the region’s top leases inked during the first quarter:
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