Market Highlights

• Vacancy increased by 120 basis points (bps) from Q4 2024 to 15.3%, driven by rising sublease availability. Sublease vacancy climbed to 2.5%, up from 1.7% in Q4 2024, contributing to the increase in overall vacancy.
• Following funding cut announcements for fiscal year 2026, NIH funding declined to $1.6 billion, down 18.0% from FY2024’s total of $1.9 billion.
• In Washington, D.C. Metro, 68.8% of sublease spaces are 10,000 square feet (sf) or smaller and are typically located in older buildings that often lack upgrades.

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