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Report: DC Continues to Lead in Aerospace, Defense Office Leasing Activity
Washington, D.C.’s aerospace and defense sector remains a driving force in the region’s office leasing activity, fueling both job growth and real estate demand, according to JLL’s Q1 2025 Aerospace and Defense Industry Insights report.
The sector continues to shape the commercial real estate landscape through strong market activity and strategic expansion. The report highlights that across the federal government, spending on facilities-related services has increased by 12% since 2020. The percentage of aerospace and defense lease renewals has continued to rise since 2019.
The total aerospace and defense leasing volume in 2024 hit 5.7 million square feet—the highest since 2021. Virginia and Texas are home to the most defense contractor headquarters, while the Washington, D.C. region continues to lead in aerospace and defense office leasing activity. The report comes amid the Department of Government Efficiency (DOGE) recently terminating millions of square feet of federal leases across the U.S. amid efforts to cut government spending.
