Washington DC (DMV) Industrial & Warehouse Market Report | Q3 2026
Key Takeaways
- Cushman & Wakefield reports the DMV as two industrial markets. In Q3 2026, Northern Virginia vacancy edged down 10 basis points to 5.0% from a restated Q2. Suburban Maryland was 11.3%, up 90 basis points on the year.
- Northern Virginia absorbed 168,636 SF, reversing a restated −100,614 SF in Q2, as the Washington Post and MobileSentrix moved in. Suburban Maryland absorbed 131,773 SF, led by the Department of Veterans Affairs’ 283,000 SF move-in in Landover.
- Northern Virginia’s average asking rent jumped $1.31 in one quarter to $18.73/SF/yr net. Suburban Maryland’s was $15.34/SF/yr net, $0.13 lower than a year earlier.
- 424,295 SF is under construction in Northern Virginia and 437,964 SF in Suburban Maryland. DSV Air & Sea signed a 402,254 SF lease in Frederick County, where vacancy is 26.9%.
Browse warehouse space for rent in Washington DC
5.0% / 11.3%
Vacancy (Q3 2026): N. Virginia / Suburban MD
$18.73 / $15.34
Avg. Asking Rent ($/SF/yr net): NoVA / Sub. MD
+169K / +132K
SF Net Absorption (Q3 2026): NoVA / Sub. MD
424K / 438K
SF Under Construction: NoVA / Sub. MD
Both of the DMV’s industrial markets added occupancy in Q3 2026. Northern Virginia swung back to positive absorption, and its average asking rent rose 7.5% in a single quarter. Suburban Maryland absorbed space for a fourth straight quarter, but its vacancy is still in double digits after a wave of new supply in Frederick County, and its rents are slightly lower than a year ago.
Figures are from Cushman & Wakefield’s Q3 2026 Northern Virginia and Suburban Maryland Industrial MarketBeats unless noted. C&W reports the two markets separately, so this report presents them side by side. Where we combine them, the math is shown and labelled as a WareCRE calculation. Prior-quarter comparisons use the figures as restated in C&W’s U.S. Industrial MarketBeat Q3 2026 metro tables, and rents are weighted net asking rents in $/SF/yr.
Market Snapshot: Q3 2026
Northern Virginia
| Metric | Q3 2026 | Q2 2026 (restated) | YoY or note |
|---|---|---|---|
| Overall vacancy | 5.0% | 5.1% | −10 bps QoQ; +20 bps YoY (4.8% in Q3 2025) |
| Overall asking rent ($/SF/yr net) | $18.73 | $17.42 | +$1.31 QoQ; +$1.51 YoY (from $17.22) |
| Warehouse/distribution vacancy and rent | 4.7%; $18.61 | 4.8%; $16.70 | 38.6M SF of warehouse/distribution space |
| Net absorption | +168,636 SF | −100,614 SF | +71,040 SF year to date; Q2 was first published at −46,404 SF |
| New leasing | 695,600 SF | 321,700 SF (as published) | Warehouse/distribution 563,900 SF (81%); 1,718,343 SF year to date |
| Deliveries | 354,043 SF year to date | 128,640 SF year to date | All in Route 28 Corridor North; C&W’s national table shows 295,803 SF |
| Under construction | 424,295 SF | 647,493 SF | 394,295 SF warehouse/distribution |
| Inventory | 61.2M SF | 61.1M SF | Warehouse/distribution and office service/flex |
Source: Cushman & Wakefield, Northern Virginia Industrial MarketBeat Q3 2026. Q2 vacancy, rent and absorption as restated in C&W’s U.S. Industrial MarketBeat Q3 2026 metro tables, which also supply the Q3 2025 comparisons. Q2 warehouse figures follow from the changes C&W states; Q2 leasing, deliveries, pipeline and inventory are from the Q2 2026 report.
Suburban Maryland
| Metric | Q3 2026 | Q2 2026 (restated) | YoY or note |
|---|---|---|---|
| Overall vacancy | 11.3% | 11.3% | +90 bps YoY (10.4% in Q3 2025) |
| Overall asking rent ($/SF/yr net) | $15.34 | $15.01 | −$0.13 YoY (from $15.47) |
| Warehouse/distribution rent ($/SF/yr net) | $14.64 | $14.54 (as published) | Office service space $16.56 |
| Net absorption | +131,773 SF | +95,339 SF | +276,976 SF year to date; Q2 was first published at +148,446 SF |
| New leasing | 549,000 SF | 375,300 SF (as published) | Warehouse/distribution 477,500 SF (87%); 1.7M SF year to date |
| Deliveries | 679,493 SF year to date | 578,639 SF year to date | Frederick County 75% of 2026 supply (WareCRE calculation) |
| Under construction | 437,964 SF | 538,818 SF | Another 1.7M SF proposed |
| Inventory | 54.1M SF | 54.0M SF | Montgomery, Prince George’s and Frederick counties |
Source: Cushman & Wakefield, Suburban Maryland Industrial MarketBeat Q3 2026. Q2 vacancy, rent and absorption as restated in C&W’s U.S. Industrial MarketBeat Q3 2026 metro tables, which also supply the Q3 2025 comparisons; figures marked “as published,” Q2 deliveries, pipeline and inventory are from the Q2 2026 report. C&W’s Q3 narrative cites 133,800 SF of absorption; its market table and the national table show 131,773 SF.
Combining the two reports gives a DMV vacancy rate of 8.0% (WareCRE calculation: 9,180,607 vacant SF out of 115,324,853 SF). That is above C&W’s U.S. average of 6.8%. Northern Virginia alone is below the national rate, and Suburban Maryland is above it.
Rent Trends: Northern Virginia Jumps 7.5% to $18.73/SF; Suburban Maryland Is Down $0.13 on the Year
Northern Virginia’s average asking rent rose $1.31 in Q3 to $18.73/SF/yr net, up 7.5% from a restated $17.42 in Q2 and 8.8% on the year (WareCRE calculations). Warehouse/distribution space averages $18.61/SF/yr, up $1.91, and office service/flex space $18.90. Among warehouse submarkets, Route 28 Corridor North asks the most at $21.84/SF/yr and Springfield/I-95 the least at $16.93. Manassas rose to $17.31 from $14.84 in Q2. C&W attributes the high rents to tight vacancy and constrained available supply.
Suburban Maryland’s average asking rent was $15.34/SF/yr net, $0.13 lower than a year earlier but up from a restated $15.01 in Q2. Warehouse/distribution space asks $14.64/SF/yr and office service space $16.56. Warehouse rents average $16.68 in Montgomery County, $13.98 in Prince George’s County and $9.95 in Frederick County.
For Tenants
Leverage depends on which side of the river you search. Frederick County sits at 26.9% vacancy and Bowie at 19.2%, so landlords there have space to fill, and Beltsville/College Park rose to 10.0% from 6.4% in Q2 as Siemens and Pella vacated space. Springfield/I-95 has the most room among Northern Virginia warehouse submarkets at 7.8%. The tight spots are Manassas (1.3% warehouse vacancy), Route 28 Corridor South (1.4%) and Laurel in Maryland (1.2%), where options are scarce. Search Washington DC warehouse listings on WareCRE.
Construction Pipeline: 862,259 SF Underway Across Both Markets
The two markets together have 862,259 SF under construction (WareCRE total of C&W’s two figures). In Northern Virginia, 424,295 SF is under way: 320,755 SF in Manassas and 73,540 SF of warehouse space plus 30,000 SF of flex space in Route 28 Corridor South. Northern Virginia has completed 354,043 SF this year, all in Route 28 Corridor North. C&W notes that its local completions figure differs from the 295,803 SF in its national statistics table.
Suburban Maryland has 437,964 SF under construction in three buildings: two warehouses at 6500 and 6600 Muirkirk Road in Beltsville totaling 269,964 SF, and a 168,000 SF building at Frederick Logistics Center. Four projects have delivered 679,493 SF this year, 75% of it in Frederick County (WareCRE calculation), most recently 15400 Calhoun Drive in North Bethesda/Rockville (100,854 SF) in Q3. C&W counts another 1.7 million SF of proposed buildings.
These C&W figures cover warehouse/distribution and flex buildings. CommercialSearch, which counts data centers as industrial space, reported in March 2026 that 13.2 million SF was under way across the region, up from 6.2 million SF a year earlier. Nearly half of it was data center space. The two measures are not comparable.
For Operators
C&W says Northern Virginia rents remain high relative to historical levels, supported by tight vacancy and constrained supply. Manassas, at 1.3% warehouse vacancy with 320,755 SF under construction, is where new supply meets the tightest conditions. In Suburban Maryland, the priority is leasing up Frederick County’s new buildings. DSV Air & Sea’s 402,254 SF lease at 9051 Gas House Pike is the largest step so far.
Submarket Breakdown
C&W tracks Northern Virginia in four submarkets, split by warehouse/distribution and office service/flex product, and Suburban Maryland by county. The four submarkets below carry most of the region’s warehouse activity this quarter.
Route 28 Corridor North (Northern Virginia)
The submarket has 12.9 million SF of warehouse/distribution space and the highest warehouse rent in Northern Virginia at $21.84/SF/yr net. Warehouse vacancy rose to 4.9% from 4.1% in Q2 even with 85,265 SF of positive Q3 absorption, as year-to-date completions grew to 354,043 SF. The Washington Post occupied 58,200 SF at 22630 Lockridge Road, RTB Volleyball 37,900 SF and Air Cartage Express 24,000 SF, offset partly by Costco Logistics leaving 42,000 SF and JK Moving 29,400 SF. Nothing is under construction.
Springfield/I-95 (Northern Virginia)
Springfield/I-95 is the largest warehouse submarket at 13.2 million SF. Warehouse vacancy fell to 7.8% from 8.4%, still the highest in Northern Virginia, and the rent is $16.93/SF/yr net, the lowest. The submarket led Northern Virginia with 294,900 SF of new leasing in Q3, including Cornet Technology (69,832 SF) and Veho (69,278 SF), and Amazon renewed 133,017 SF at 6885 Commercial Drive. Its flex space runs 10.2% vacancy. Nothing is under construction.
Manassas (Northern Virginia)
Manassas has 9.0 million SF of warehouse space at 1.3% vacancy, the tightest in Northern Virginia. Warehouse absorption reached 111,347 SF year to date as MobileSentrix (99,552 SF) and The Goldstar Group (90,152 SF) leased space at 9061-9073 Euclid Avenue. The warehouse rent rose to $17.31/SF/yr net, and the submarket holds the largest pipeline at 320,755 SF. 10902-10904 Carolina Drive (102,500 SF) sold for $25.0 million, or $243.90/SF.
Prince George’s County (Suburban Maryland)
Prince George’s County has 35.0 million SF at 10.4% vacancy, with warehouse rent at $13.98/SF/yr net. The county absorbed 76,465 SF in Q3 and 380,090 SF year to date. The Department of Veterans Affairs moved into 283,000 SF in Landover, where Landover/Lanham absorbed 281,443 SF, while Siemens left 76,000 SF and Pella 41,100 SF in Beltsville. Rivian renewed 83,955 SF at 716 Ritchie Road. Bowie runs 19.2% vacancy, and Beltsville/College Park has 269,964 SF under construction.
| Northern Virginia submarket (warehouse/distribution) | Inventory | Vacancy | Rent ($/SF/yr net) | YTD Net Absorption | Under Construction |
|---|---|---|---|---|---|
| Springfield/I-95 | 13.2M SF | 7.8% | $16.93 | +15,676 SF | 0 SF |
| Route 28 Corridor North | 12.9M SF | 4.9% | $21.84 | −19,086 SF | 0 SF |
| Manassas | 9.0M SF | 1.3% | $17.31 | +111,347 SF | 320,755 SF |
| Route 28 Corridor South | 3.5M SF | 1.4% | $17.71 | −8,856 SF | 73,540 SF |
| Northern Virginia warehouse total | 38.6M SF | 4.7% | $18.61 | +99,081 SF | 394,295 SF |
Source: Cushman & Wakefield, Northern Virginia Industrial MarketBeat Q3 2026, warehouse/distribution rows.
| Suburban Maryland county (all industrial) | Inventory | Vacancy | W/D Rent ($/SF/yr net) | YTD Net Absorption | Under Construction |
|---|---|---|---|---|---|
| Prince George’s County | 35.0M SF | 10.4% | $13.98 | +380,090 SF | 269,964 SF |
| Montgomery County | 14.0M SF | 7.7% | $16.68 | −129,340 SF | 0 SF |
| Frederick County | 5.1M SF | 26.9% | $9.95 | +26,226 SF | 168,000 SF |
| Suburban Maryland total | 54.1M SF | 11.3% | $14.64 | +276,976 SF | 437,964 SF |
Source: Cushman & Wakefield, Suburban Maryland Industrial MarketBeat Q3 2026.
Co-Warehousing & Flexible Warehouse Space in DC
Small-bay users in the DMV compete for a limited pool of close-in space, which makes flexible and shared warehouse space a practical alternative to a long-term lease.
Government contractors are a core group of flexible-space users in DC, often needing secure staging and storage near federal facilities. E-commerce sellers, food and beverage distributors serving the region’s restaurants and caterers, construction and trades firms, and nonprofits storing event materials also lease it.
Browse available co-warehousing and small-bay warehouse listings on WareCRE’s Washington DC marketplace.
Looking for warehouse space in Washington DC?
Key Trends to Watch
1. Northern Virginia Absorption Turned Positive Again
Northern Virginia absorbed 168,636 SF in Q3, after a restated −100,614 SF in Q2, bringing the year to +71,040 SF. C&W first published Q2 at −46,404 SF. Warehouse/distribution space drove the gain with 207,061 SF, while office service/flex space gave back 38,425 SF. New leasing also picked up to 695,600 SF, more than double Q2’s 321,700 SF.
2. Data Centers Still Compete for Land After the PW Digital Gateway Ended
Data center demand still sets land prices in parts of Northern Virginia. Amazon Data Services paid $700 million for about 188.5 acres in Bristow, in Prince William County, in a deal that closed November 5, 2025. Courts voided the rezoning for the 2,100-acre PW Digital Gateway, and QTS, the last developer still pursuing it, withdrew its appeals to the Supreme Court of Virginia on July 2, 2026. Compass Datacenters and Prince William County had dropped out earlier in the year. For how trade and supply chains are shaping warehouse demand, see How Tariffs Are Reshaping Warehouse Demand in 2026.
3. Frederick County Signed the Quarter’s Largest Lease
DSV Air & Sea signed a 402,254 SF new lease at 9051 Gas House Pike in Frederick, the largest Q3 transaction in either market. Frederick County holds 75% of Suburban Maryland’s new supply this year and sits at 26.9% vacancy, and the DSV lease alone equals about 29% of the county’s vacant space (WareCRE calculation). How fast that space is occupied will shape the region’s vacancy rate more than any other single factor. For the national small-bay versus big-box picture, see Small-Bay vs. Big-Box: What the Vacancy Gap Means for Tenants and Operators.
Outlook: What to Watch in Early 2027
C&W’s year-end 2026 MarketBeats are expected in mid-January. Three readings matter most.
Watch whether Northern Virginia rents hold. The average jumped $1.31 to $18.73/SF/yr in Q3. Another quarter near that level would confirm the move.
Watch whether Frederick County leases up. At 26.9% vacancy, it pulls Suburban Maryland’s rate to 11.3%. DSV’s move-in would be the clearest sign that the county’s new buildings are filling.
Watch whether Northern Virginia absorption stays positive. It stands at +71,040 SF year to date after Q3’s rebound. Springfield/I-95, at 7.8% warehouse vacancy, has the most space left to fill.
Find warehouse space in Washington DC
Browse co-warehousing, small-bay, and flex listings across the DC metro area.
Data sources: Cushman & Wakefield Northern Virginia Industrial MarketBeat Q3 2026 and Q2 2026; Cushman & Wakefield Suburban Maryland Industrial MarketBeat Q3 2026 and Q2 2026 (rents weighted net asking, $/SF/yr); Cushman & Wakefield U.S. Industrial MarketBeat Q3 2026 (restated Q2 figures, Q3 2025 comparisons and U.S. vacancy); Commercial Observer, March 16, 2026, citing CommercialSearch (pipeline including data centers); Virginia Business, November 18, 2025 (Amazon land purchase); WTOP/InsideNoVa and Converge Digest, July 2026 (PW Digital Gateway). Each report reflects the most recent vacancy, rental, and construction data available at the time of publication. We refresh our reports as new market data is released, and we’re continually expanding coverage to additional metros.
Related Resources
Frequently Asked Questions
What is the current industrial vacancy rate in Washington DC?
Cushman & Wakefield reports the DMV as two markets. In Q3 2026, Northern Virginia industrial vacancy was 5.0% and Suburban Maryland’s was 11.3%. Combining the two reports gives 8.0% (WareCRE calculation: 9,180,607 vacant SF out of 115,324,853 SF), compared with C&W’s U.S. average of 6.8%.
How much does warehouse space cost in Washington DC?
In Q3 2026 the average asking rent was $18.73/SF/yr net in Northern Virginia and $15.34/SF/yr net in Suburban Maryland. Warehouse/distribution space averaged $18.61 in Northern Virginia and $14.64 in Suburban Maryland. By submarket, warehouse rents range from $9.95 in Frederick County to $21.84 in Route 28 Corridor North.
Which DC-area submarket is best for warehouse space?
It depends on the requirement. Prince George’s County offers low warehouse rents ($13.98/SF/yr) and has absorbed 380,090 SF this year. Springfield/I-95 is the lowest-cost Northern Virginia warehouse submarket at $16.93/SF/yr and has the most space there at 7.8% vacancy. Route 28 Corridor North near Dulles is the premium option at $21.84/SF/yr. Frederick County has the highest vacancy rate in the region at 26.9%.
How much industrial space is under construction in the DC area?
C&W counts 424,295 SF under construction in Northern Virginia and 437,964 SF in Suburban Maryland at the end of Q3 2026. CommercialSearch, which includes data centers as industrial space, reported 13.2 million SF under way across the region in March 2026, nearly half of it data center space.
