Washington, D.C. Retail Market Report
Retailer Demand is Booming in Northern Virginia;
District Still Impeded by Reduced Foot Traffic
Leasing surge provides reasons for optimism. Although metrowide vacancy remains 100 basis points above the pre-pandemic rate entering the second quarter, recent leasing activity indicates the market may be turning the corner. Vendors absorbed over 950,000 square feet during the first quarter, marking the largest total in a three-month span since 2016. Home to strong population growth, Northern Virginia has been the standout destination for retailer expansions, with the region accounting for nearly 80 percent of the space absorbed over the past year ending in March. Specifically, retail fundamentals are strongest in suburban nodes like the Woodbridge-I-95 Corridor, Greater Fredericksburg, Dulles Corridor and Greater Fairfax County. In these submarkets, retail vacancy rates are at least 100 basis points below the metro average.