Vacancy Rate
18.8-22.6%
Active Deals
2
Outlook
Cautious
DC CRE market navigating structural rebalancing post-federal shifts; office challenged by high vacancy and conversions, retail/industrial strong with low vacancy.TenantBase Q1 2026
Yields & Returns
Vacancy & Supply
Vacancy Rates
Office: 18.8-22.6%; Retail: 5.7%; Industrial: ~7%; Multifamily: 6.1%.TenantBase, CBRE, Newmark
Supply Pipeline
Office: zero under const, low future; industrial/mf thinning; retail minimal new supply.CBRE, TenantBase
Competitor Activity
Q1 2026: 2001 M St $163M (Stream), 1401 NY Ave $85M (Carr); PPS 15k SF lease; 685k SF office-to-resi conv. Q2 2025: Easterly $119M 1200 1st St.LPC, Cresa
| Firm | Activity | Asset | Detail | Value |
|---|---|---|---|---|
| Various | Transaction | Commercial | Q1 2026: 2001 M St $163M (Stream), 1401 NY Ave $85M (Carr) | $163M |
| Various | Transaction | Commercial | PPS 15k SF lease | N/A |
| Various | Transaction | Commercial | 685k SF office-to-resi conv. Q2 2025: Easterly $119M 1200 1st St.LPC, Cresa | $119M |
Demand Drivers
Rental Market
Employment & Economy
Migration & Demographics
Transport & Connectivity
Key Risks
Federal downsizing/hybrid work, high office vacancy/obsolete stock, unemployment rise, potential govt shutdown.TenantBase, Axios
Outlook 12–24 Months
Stabilization thru 2026: office via conversions/tight supply, modest rent growth industrial; selective growth retail/mf; overall rebalancing.TenantBase, CBRE