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D.C. Metro Area Real Estate Outlook: Trends Shaping 2026

Discover how office demand, adaptive reuse, mixed-use development, and digital infrastructure are driving the next phase of the DMV real estate market.  

Is the Washington, D.C. office market finally turning a corner? While the DMV continues to face headwinds from federal workforce reductions, high vacancy rates, and evolving workplace strategies, new signs of recovery are emerging. Discover how the region's flight to quality, office-to-residential conversions, mixed-use developments, and booming data center investment are reshaping the future of commercial real estate and creating opportunities for owners, tenants, and investors.

Read the full CohnReznick and Davis, Carter, Scott report to explore the trends, projects, and investment opportunities driving the next chapter of the Washington metropolitan area's real estate evolution.

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Leasing activity

80% of all leasing activity

in the DMV and nationally occurred in Class A office buildings.

Data center investment

$30-50B

in expected data center investment in Northern Virginia between 2025 and 2027.

“Best-in-class office assets are not only attractive investments for owners and desirable workplaces for tenants, but they also generate meaningful economic benefits for surrounding communities.”
- CohnReznick and Davis, Carter, Scott report

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