Manassas Market Report – 3rd Quarter of 2025
Q3 2025 CITY OF MANASSAS MARKET REPORT
Manassas continues its strong performance heading into the second half of 2025. Commercial vacancy dropped across almost all sectors, with overall vacancy now at 2.9%—one of the lowest levels since Q2 2024 and still well below the Northern Virginia regional average of 10.3%.
Rental rates continued trending upward in all categories. On average, the City saw a rise in market rent (from $22.12/sf to $22.45/sf). The market sales price also jumped steadily from $221/sf in Q2 to $236/sf in Q3. Months on market also dropped slightly to 7.5 from last quarter’s 7.8.
That momentum is echoed throughout the community. Several new food establishments opened this quarter and two large assisted living facilities completed major redevelopment projects. These visible signs of growth reinforce Manassas’ position as a highly attractive and engaged community for businesses and residents alike.
The industrial vacancy rate rose to 5.7%, up from 4.9% last quarter, largely attributed to a single 118K warehouse on Euclid Avenue. Even with this increase in vacancy, market rent still climbed to $16.49/sf, underscoring continued long-term demand. In contrast, flex space vacancy dropped again to just 1.35%, while flex rent increased to $18.34/sf—the highest on record for the City.
Construction continues on two large AWS data centers at Technology Circle and Dean Drive. Meanwhile, General Dynamics Mission Systems expanded operations by opening a state-of-the-art Maritime Systems Center of Excellence, adding 200 new positions focused on modernizing U.S. Navy submarine combat systems—bringing their local total to more than 500 in Manassas.
At Manassas Regional Airport, Electra announced plans to expand its footprint with 15,000 additional square feet of hangar space. Elsewhere in the industrial corridor, PIRTEK, a hydraulic hose and fitting service provider, opened at Godwin Industrial Park, supporting logistics and maintenance across sectors.
Retail market rent rose $.87 to $29.08/sf while vacancy continued its downward trend, falling to 2.6%, reflecting healthy leasing conditions as businesses position themselves for Q4’s peak season.
The City’s First Friday events remain a catalyst of local foot traffic, and this fall saw a surge in activity with the holiday shopping season already ramping up. A variety of new food establishments opened—many local and family-owned—and we celebrated additions like Chico’s Quick Tees, offering customized merchandise and gifts.
As the Ashberry project (Historic Downtown’s largest residential development to date) progresses, retailers are anticipating further foot traffic from nearby residents. New and expanded assisted living facilities, including Commonwealth Senior Living on Portner Avenue and Lavender Hills on Hastings Drive, are also helping anchor retail corridors with family visits and daily needs-based retail.
Office market rent climbed again to $26.61/sf, while vacancy declined to 2.3%, after ticking up slightly in Q2—showing sustained demand and limited inventory.
This quarter, hundreds gathered to celebrate the Prince William Chamber’s grand opening alongside the 5-year anniversary of Tru by Hilton. The joint celebration highlighted how The Landing at Cannon Branch—once 40 acres of green space—is now evolving into a dynamic hub for office, retail, and hospitality growth.
New tenants this quarter include Sherlin Corporation, which relocated back to the City, expanding its property management services throughout Northern Virginia. They join On the Mark Management, a construction and facilities management company, and Telelink Communications, a telecommunications provider now serving the Virginia and D.C. metro area from its new Manassas location.
As development continues, Manassas is poised to welcome even more professional services and office users seeking proximity to transit, retail, and a growing customer base.
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