Northern Virginia’s industrial market continues to recalibrate following the post-pandemic leasing highs of 2021–2023. Fundamentals remain healthy, with stable vacancy and persistent demand, though leasing activity is down modestly year-over-year. Despite rising construction costs, the region’s strategic location near the nation’s capital, major ports, and key distribution corridors keeps it highly competitive, as well as growing data center conversions that are tightening traditional industrial supply.
Northern Virginia’s statistics vary greatly within different segments of the market. Vacancy, leasing demand and rental rates are influenced by factors such as facility size, age and location. This report delves into the intricacies of these dynamics across the submarkets and building type.
