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DC retail market faces development bottleneck as demand stays strong

Tight availability and experiential concepts drive leasing momentum
The new Ford's Fish Shack in Chantilly, Virginia, marked one of the few new retail projects to open in 2025. (Joseph Furio/CoStar)
The new Ford's Fish Shack in Chantilly, Virginia, marked one of the few new retail projects to open in 2025. (Joseph Furio/CoStar)
CoStar Analytics
December 16, 2025 | 2:00 P.M.

Washington, D.C.’s retail market is entering 2026 with a surprising degree of stability. Despite economic uncertainty and rate volatility, consumer spending has held up, and operators report steady demand across most categories. The mood among retail landlords is cautiously optimistic, despite muted development.

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News | DC retail market faces development bottleneck as demand stays strong