Muted activity among core industries leads to modest leasing volume in Q1
The Washington, D.C. office market’s recovery was uneven in Q1 2026, as rents remained resilient amid subdued leasing activity and stagnant availability. At roughly 1.3 million square feet (msf), leasing volume hit its lowest quarterly total in several years, while overall availability rates increased year over year. Class A assets, however, continues to outperform, with availability tightening and rent growth up by nearly 7.0% year over year. Most of the quarter’s top leases were renewals, although Howard University’s 94,717-square foot (sf) deal at 650 Massachusetts Avenue NW was a notable relocation. The university subleased that space from Georgetown University in what was the largest deal of the quarter. Howard will be relocating its pharmacy school from an academic building on its main campus.