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DC market in the first half of 2025: Office uncertainty, retail and data center resilience

Retail, data centers and population growth contrast against office weakness
The 197-unit Novel 14th St. apartment building was completed earlier this year in D.C.'s Columbia Heights neighborhood. (Anna Cheng/CoStar)
The 197-unit Novel 14th St. apartment building was completed earlier this year in D.C.'s Columbia Heights neighborhood. (Anna Cheng/CoStar)
CoStar Analytics
July 18, 2025 | 7:04 P.M.

The first half of 2025 was a study in contrasts for the Washington, D.C., commercial real estate market: Office leasing and investment remain cautious amid federal uncertainty, but green shoots are emerging in retail, data centers and multifamily real estate, supported by population growth and evolving tenant preferences.

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