The Washington DC Commercial Real Estate Market

Shanti Ryle

December 4, 2025

A downtown street view lined with American flags in Washington DC

Key Takeaways

Washington, DC offers investors a rare combination of income stability and long-term demand, driven by federal employment, government-adjacent industries, and a highly educated, high-income population that supports pricing resilience across asset classes.
Industrial fundamentals remain solid across the broader DMV, with stable vacancy, positive absorption, and government and logistics demand supporting consistent cash flow opportunities, particularly in Prince George’s County and key freight corridors.
Office assets present a clear bifurcation, where well-located and upgraded buildings continue to lease while older inventory faces pressure, creating acquisition opportunities tied to repositioning, conversions, or flight-to-quality strategies.
Multifamily continues to rank among the region’s most stable investments, with low vacancy, flat but durable rent growth, and sustained renter demand supported by high homeownership barriers and strong employment fundamentals.

Washington, DC continues to stand out as one of the country’s most influential commercial real estate markets, shaped by its role as the seat of the federal government and a global center for policy, diplomacy, and innovation. The region attracts investors, tenants, and developers who are looking for stability, strong employment anchors, and a marketplace that evolves with each administration, budget cycle, and wave of private-sector growth.

Crexi helps connect those players with the information and tools they need to make confident decisions. From sales and leasing activity to digital marketing and lead management, the Crexi platform supports brokers and buyers throughout Washington, DC, Alexandria, Arlington, Bethesda, Capitol Heights, and the surrounding region.

To date, Crexi has contributed to more than $615 billion in commercial property transactions and supported the marketing of over $7 trillion in assets, helping the DMV’s CRE community research opportunities, analyze trends, and close deals with greater efficiency.

A view of the Capitol building in Washington DC

Washington DC Commercial Real Estate Overview

The Washington, DC metro, often referred to as the DMV, has a character unlike any other major market in the U.S. It operates at the intersection of government, global business, technology, healthcare, education, and defense, creating a depth of demand that remains remarkably steady even when other metros experience sharper swings.

The region’s large concentration of federal agencies, think tanks, nonprofits, and international institutions continues to attract a highly educated workforce, while Northern Virginia and suburban Maryland add economic diversity through cybersecurity firms, life science corridors, and a growing roster of private-sector employers.

Although the market is navigating national headwinds, from interest rates to shifting workplace patterns, the DMV continues to benefit from long-term fundamentals that are difficult to replicate elsewhere: a resilient employment base, a deep talent pipeline, and sustained public-sector spending. For investors, tenants, and developers, this creates a CRE landscape where opportunity is still very much present, especially for well-located assets and projects aligned with the region’s growth sectors.

Washington DC Regional Context

The Washington–Arlington–Alexandria metro continues to grow, shaped by steady job creation and a quality of life that keeps longtime locals rooted here while attracting new residents from across the country. People are drawn to the region for its career opportunities, strong schools, and unparalleled access to cultural institutions. That growth shows up across DC, Northern Virginia, and suburban Maryland, where different neighborhoods offer their own balance of housing options, commute patterns, and community amenities.

The population of the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area is over 6.4 million, with about 679,000 residents within Washington, DC itself.
The resident population has grown by more than 5% since 2015, based on research by the St. Louis Fed.
The median age in the metropolitan area is 38.3, about the same figure as in the US.
The per capita income is $61,464, and the median household income is $121,469, which is about 1.45 times the amount in the US.
Median household incomes increased by nearly 3.5% year-over-year, with 27% of households earning more than $200,000 annually.

The front of Washington DC's Capitol building

Washington DC Job Market

The Washington, DC job market reflects the depth and stability you’d expect from the nation’s capital, but it’s also evolving in ways that broaden its economic base. Federal agencies remain the region’s anchor employers, but the private sector continues to expand across technology, professional services, healthcare, and life sciences.

DC’s federally designated Opportunity Zones encourage investment in targeted neighborhoods by offering tax incentives for new commercial projects and business expansion, helping channel capital toward areas poised for long-term revitalization. Combined with the region’s deep employer base and steady development pipeline, Washington, DC remains one of the country’s most resilient job markets - and a key area to watch for long-term commercial momentum.

Regional GDP is nearly $715 billion, increasing by almost 25% over the past 5 years alone.
The unemployment rate is 6% (as of August 2025), holding relatively steady through 2025.
The largest industries in Washington, DC include professional, scientific, and technical services, public administration, and healthcare and social assistance.
The Washington, DC Economic Partnership also lists healthcare and life sciences, hospitality and tourism, media and communications, and retail as target industry sectors.
The largest public employers in the DMV metropolitan area are the US Department of Defense, Department of Homeland Security, US Navy, United States Department of Justice, and the USDA.
The largest private companies in the greater DC area generated more than $186 billion in combined revenue in 2024, and include well-known names like Mars, Inc., Bechtel Corporation, and Carahsoft Technology Group.
WalletHub ranked the metropolitan area among the top 10 best cities for jobs in 2025 and one of the best cities for STEM professionals based on factors such as job opportunities, employment growth, and average starting salary.
The Urban Land Institute (ULI) and PwC Emerging Trends in Real Estate® 2026 rank Washington, DC – Northern Virginia as a key market to watch for overall real estate prospects.
Major development projects in the Washington, DC area include a 174-acre campus for the RFK Stadium (slated to be the new home of the Washington Commanders), a $500 million health resort in development by Therme Group, and a high number of office-to-residential conversions.
Business incentives in Washington, DC include programs such as the Vitality Fund, Growth Fund, and the DC Venture Capital Fund, all contributing to an environment where entrepreneurs can thrive.
The region is home to some of the nation's most renowned academic institutions, including Georgetown University and George Washington University in D.C., Johns Hopkins University and the University of Maryland in Maryland, and George Mason University in Northern Virginia.
Nearly 55% of residents in the metropolitan area hold a bachelor’s degree or an advanced degree, about 1.5 times the rate in the US.
The DMV region boasts an extensive transportation infrastructure, with major interstates like I-95 and I-66, key highways such as the Beltway (I-495), three major airports (Reagan National, Dulles International, and BWI Marshall), and proximity to other major metropolitan areas like Philadelphia and New York City.
The DC Metrorail serves over 600,000 commuters every day, providing easy accessibility across the region.
The Port of Baltimore is a major shipping port in the region, known for its significant cargo volume and role in international trade. Additionally, the Port of Virginia, including facilities in Norfolk and Newport News, is another crucial maritime hub nearby that supports substantial commercial shipping activity.

Washington DC Industrial Market

The Washington, DC industrial market has settled into a steady rhythm, supported by strong distribution activity and demand from logistics, food companies, and government-adjacent users. Even with new space delivering across Maryland and Northern Virginia, vacancy has held fairly stable, suggesting that the market is absorbing growth at a healthy pace.

Developers continue to push forward on build-to-suit projects, particularly in Prince George’s County and along major freight corridors, where tenants are prioritizing modern space with better transportation access. While some larger buildings are taking longer to lease, touring activity has picked up, and the region’s industrial fundamentals are on solid ground as 2025 closes out.

Market overview (Savills Washington D.C. Q3 2025 Industrial Market Report)

Inventory: 143,900,000 SF
Vacancy rate: 6.6%
Under construction: 3,500,000 SF
Deliveries: 2,200,000 SF
Net absorption: 2,000,000 SF
Key leases by tenant: Power Solutions (140,000 SF), Weee! (128,983 SF), National Tire Wholesale (85,914 SF)
Key submarkets: Prince George’s, Frederick, Prince William

Crexi Insights

These are the most recent industrial lease and sales trends in the DMV region, provided by Crexi Insights (as of December 2025):

For Lease (active)

Asking rate/SqFt (median): $15 per year
Median SqFt/listing: 5,025
Days on market: 252
Total listings on Crexi: 262 spaces

For Sale (active)

Median asking price: $2.1 million
Price/SqFt: $210
Asking cap rate: 7.9%
Days on market: 155
Total listings on Crexi: 33

Sales Comps (past 12 months)

Median sold price: $1.5 million
Sold price/SqFt: $217
Total sales volume: $2.2 billion
Sold cap rate: 7%
Median SqFt sold/transaction: 2,140
Total SqFt sold: 7.5 million
Days on market (median): 195

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A downtown view with the Washington Monument in the background

Washington DC Office Market

The office market in DC continues to evolve as tenants rethink how much space they need and where they want to be. Federal agencies, law firms, and nonprofits remain the backbone of leasing activity, but many are consolidating or taking shorter terms as they adapt to hybrid work.

At the same time, well-located Class A and renovated buildings are still drawing interest, especially in core submarkets like the East End and the CBD, where tenants are prioritizing higher-quality space over larger footprints. Conversions to residential and hospitality are also reshaping the market, gradually removing older inventory and helping stabilize vacancy. It’s a market in transition, but one where thoughtful upgrades and strategic repositioning continue to gain traction.

Market overview (Cushman & Wakefield Q3 2025 Washington, D.C. Market Office Reports)

Inventory:111,121,315 SF
Average vacancy rate: 22.1%
Net absorption: -737,955 SF (YTD)
Under construction: 385,000 SF
Leasing activity: 2,448,386 SF (YTD)
Key lease transactions by tenant: GSA-DOJ (465,513 SF), GSA-The Commodity Futures Trading Commission (288,395 SF), Manatt, Phelps, & Phillips (55,000 SF)
Largest submarkets: East End, DC Central Business District, Capitol Hill/NoMa

Crexi Insights

For the latest updates on the DMV office market, turn to Crexi Insights. Here is the detailed information on leasing and sales trends in the region as of December 2025:

For Lease (active)

Asking rate/SqFt (median): $29 per year
Median SqFt/listing: 1,640 SF
Days on market: 251
Total listings on Crexi: 2,045 spaces

For Sale (active)

Median asking price: $797,500
Price/SqFt: $299
Asking cap rate: 7%
Days on market: 206
Total listings on Crexi: 199

Sales Comps (past 12 months)

Median sold price: $728,300
Sold price/SqFt: $241
Total sales volume: $3.9 billion
Sold cap rate: 7.8%
Median SqFt sold/transaction: 2,276 SF
Days on market (median): 253

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Washington DC Retail Market

Retail activity across the DC region is taking a different shape in 2025, with some areas gaining traction while others navigate a slower recovery. Suburban markets in Maryland and Northern Virginia continue to perform well, supported by steady population growth and new shopping centers that were largely leased before opening.

Within the District, retail conditions are softer as federal employment shifts and reduced downtown foot traffic influence demand, particularly in older corridors. Even so, established destinations like Georgetown continue to attract interest, showing that well-located storefronts built-in community appeal still hold their value.

Market overview (Cushman & Wakefield U.S. Shopping Center Reports Q3 2025)

Inventory: 122,560,718 SF
Vacancy rate: 4.5%
Under construction: 459,173 SF
Deliveries: 170,341 SF (YTD)
Net absorption: 141,298 (Q3 2025)
Key submarkets: Georgetown, Bethesda Row

Crexi Insights

Here are the most recent DMV retail lease and sales trends from Crexi Insights (as of December 2025):

For Lease (active)

Asking rate/SqFt (median): $33 per year
Median SqFt/listing: 2,527 SF
Days on market: 435
Total listings on Crexi: 1,427 spaces

For Sale (active)

Median asking price: $1.9 million
Price/SqFt: $540
Asking cap rate: 6.0%
Days on market: 206
Total listings on Crexi: 73

Sales Comps (past 12 months)

Median sold price: $1.3 million
Sold price/SqFt: $365
Total sales volume: $976.4 million
Sold cap rate: 7.3%
Median SqFt sold/transaction: 3,007 SF
Days on market (median): 188

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Apartment and multifamily homes in Washington DC with cars that match the buildings' colors out front

Washington DC Multifamily Market

Demand for apartments across the Washington metro area remains steady, shaped by a mix of strong regional employment, elevated interest rates, and a single-family market that remains out of reach for many renters. Even with rent growth leveling off and new deliveries adding pressure, overall occupancy is holding firm, reflecting how deeply housing needs run in the region.

Developers continue to bring new projects online, especially near transit corridors and mixed-use districts where long-term demand is expected to stay healthy. While the pace of growth has cooled, multifamily is still one of the most stable segments of the region’s commercial real estate landscape.