Manassas Market Report – 1st Quarter of 2025
Q1 2025 CITY OF MANASSAS MARKET REPORT
Q1 2025 started strong in the City of Manassas. The Prince William Chamber of Commerce hosted the largest business awards dinner in its history on February 27, with nine Manassas businesses recognized across respective categories—evidence of the City’s growing reputation as a business-friendly hub where companies thrive.
Vacancy declined in nearly every sector this quarter, and rental rates continued trending upward in most categories. On average, the City saw a drop in vacancy (from 3.60% to 2.90%), a modest rise in market rent (from $21.75 to $21.91), and a significant increase in sales price (from $219 to $243), while months to lease more than doubled (from 4.3 to 8.2), months vacant increased (from 4.8 to 5.5), and time on market shortened (from 8.1 to 7.0)—indicating a complex but active first quarter.
The City remains well-positioned in the Northern Virginia market, balancing business growth, infrastructure investment, and community-focused revitalization.
Industrial vacancy declined to 5.2% in Q1 2025, a notable recovery from Q4’s temporary rise. Market rent also increased to $16.24/sf, signaling renewed demand across the sector. Flex vacancy rose slightly to 0.87%, though availability remains scarce. Flex rent continued its upward trajectory, climbing to $17.56/sf.
New activity includes the start of site work on two AWS data centers, each spanning 256,000 sq ft, at 9496 Technology Drive. Northeastern Supply also expanded operations into Manassas at 9751 Center Street, tapping into the City’s logistical strengths and workforce.
Looking ahead, Micron’s latest $2.14 billion investment, announced at the end of Q4 2024, is expected to have ripple effects across the industrial and flex market as it moves forward with plans to expand and update its R&D facility.
Retail vacancy improved slightly, dropping to 3.3% from last quarter’s 3.5%. Market rent eased modestly to $27.74/sf but remains strong across the City. Continued investment in commercial corridors and revitalization efforts are driving foot traffic and business activity.
A standout example: the February “Souper Bowl” First Friday event in Historic Downtown sold over 1,000 tickets, up from 640 in 2024. Visitors toured shops and restaurants sampling soups before voting for a winner—Lume Asian Fusion took home this year’s trophy. Events like these continue to boost retail vitality and community connection.
Office vacancy in the City fell from 3.6% to 2.2%, one of the lowest rates in the region. Market rent continued its steady rise to $26.14/sf, reflecting sustained demand and limited supply.
New occupancy highlights include Proud Moments ABA, which opened in a previously vacant 7,855 sq ft space at 8751 Sudley Road. Meanwhile, McDermott Armati Wealth Strategies expanded into Historic Downtown and doubled their space, drawn by the City’s accessibility and growing business community.
New housing developments and in-fill projects are expected to continue Citywide, boding well for office real estate opportunities. Readers should keep an eye on this report and our bi-weekly newsletters for announcements.
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