April 6, 2026 (Washington, DC) – The Washington DC Economic Partnership (WDCEP) has published the 2025/2026 DC Development Report, its annual analysis of real estate development and economic trends across the District. This year’s edition charts how DC’s built environment continues to evolve—driven by a growing wave of residential conversions and steady investment in living and community spaces despite a slowdown in traditional office construction.
Produced in collaboration with Cavalry Real Estate Advisors, the Development Report is WDCEP’s cornerstone publication, used by investors, businesses, and local organizations to assess the city’s market conditions and pipeline. Data in the report reflects project status as of year-end 2025.
“This report shows a city evolving. Despite a slowing office market, we’re seeing strategic investment flow toward housing, retail, and community infrastructure—the hallmarks of a our vibrant neighborhoods,” said Derek Ford, President & CEO, WDCEP.
Key Findings from the Report
- Development Volume: WDCEP tracked 3.6 million square feet of project groundbreakings in 2025—a 27% decline from 2024 and below the 10-year average of 9.9 million SF in annual starts.
- Residential Growth: Groundbreakings for 1,930 housing units in 2025 represent a 42% year-over-year increase, with 1,110 units resulting from conversion projects.
- Conversion Momentum: Over the past two years, conversion projects have delivered more than 3,330 residential units and 264 hotel rooms. Fourteen new conversion projects are now underway, set to yield nearly 2,000 additional units and more than 500 hotel rooms. The DC metro area ranks #2 nationally, following New York City, as one of the most active office-to-residential conversion markets.[1]
- Historic Investments: Ten office-to-residential projects have been awarded Housing in Downtown (HID) incentives, representing 2,560+ new units, including The Geneva, DC’s largest conversion to date, which received $465 million in C-PACE financing, the largest in history.
- Retail Development: Retail construction activity surged in 2025, with 136,000 square feet of new space breaking ground—a 190% increase over the previous year.
- Quality of Life Projects: Even amid a broader development slowdown, 1.15 million square feet of Quality of Life projects (e.g. education, libraries, recreation centers) were completed in 2025, closely aligning with the 10-year average of 1.3 million SF
To further explore the city’s transformation, WDCEP has also released an updated Office Conversion Map, available at wdcep.co/office-conversions.
According to Chad Shuskey, EVP of Retail Attraction & Market Intelligence, “The city is experiencing sustained momentum in conversion activity, much of it supported by the Housing in Downtown incentive program. Even though overall development remains below historical norms, DC is still seeing landmark investments in sports and entertainment—from the Capital One Arena modernization to the RFK Campus redevelopment—as well as in its largest office-to-residential conversion, The Geneva, which recently closed a record-setting $465 million in C-PACE financing.”
The DC Development Report is a summary of the major development and construction projects in the District of Columbia and produced in collaboration with Cavalry Real Estate Advisors. The Development Report is used by investors, businesses, and local community-based organizations to track investment in the District. While our database of projects is constantly being updated, this publication’s data reflect project status, design, and information as of year-end 2025.
WDCEP tracks major developments throughout the year and performs an annual “development census” in the month of December. This involves soliciting contributions from more than 50 developers, architects, contractors, and economic development organizations to provide updates to more than 200 projects.
For more insights and data, download the full 2025/2026 DC Development Report at https://wdcep.com/resources/dc-development-report/
# # #
Although every attempt was made to ensure the quality of the information contained in this document, WDCEP makes no warranty or guarantee as to its accuracy, completeness, or usefulness for any given purpose.
[1] https://www.rentcafe.com/blog/rental-market/market-snapshots/adaptive-reuse-office-to-apartments-2026/