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Midyear commercial real estate report: vacancies fall, major leases signed
Summary
Economic development staff reported improving commercial real estate indicators: office vacancy dropped to 11% from 14%, flex vacancy to 5.6%, and retail vacancy to 2.1%. Major transactions included a 42,000 sq ft renewal at 9841 Washingtonian Blvd and a near-60,000 sq ft expansion by GeneDx.
Economic development staff presented midyear commercial real-estate trends Tuesday, reporting lower vacancy rates across office, flex and retail inventories and several notable leases.
Tom Lonergan Seager said staff tracks roughly 9,500,000 square feet of office and about 5,000,000 square feet of retail in the city. "The office space vacancy rate improved, dropping from 14% in the first half of '25 to 11% by the end of June," he said. Staff reported 17 office leases signed in the first half of the year totaling more than 133,000 square feet; the largest office transaction was Launch Workplaces renewing 42,000 square feet at 9841 Washingtonian Boulevard. Flex-space vacancy decreased from 11.4% to 5.6% and included a large GeneDx expansion of about 60,000 square feet on Klopfer Road. Retail vacancy declined again to about 2.1% in June, Seager said, and staff will continue monitoring the connection between commercial real estate trends and jobs in the city.
Mayor Ashman thanked the economic development staff for the update and councilmembers said they appreciated the monitoring of trends that influence local planning and permitting decisions.
