Washington DC Office Figures Q2 2026

In Q2 2026, the office market posted its first quarterly occupancy gain in several periods, as net absorption reached 65,101 sq. ft. Vacancy fell 40 basis-points to 22.2%. Private sector occupancy gain and the conversion or redevelopment of vacant office buildings to alternative uses have both helped market fundamentals stabilize.

Washington, D.C. is one of the leading cities in the U.S. for office-to-residential conversion and redevelopment activity, which has steadily cut obsolete office space from the market. Additionally, a tapering supply of new office space will help further stabilize the D.C. market. Just three buildings have delivered in Washington, D.C. since the start of 2023, and the two buildings in the current pipeline are both fully preleased, excluding encumbered space, and won’t deliver until 2028 and 2031.