Demand for SCIF space is reshaping the office market around the nation’s capital, even as other segments feel the pinch of reduced federal leasing. The surge is tied to a wave of defense spending that has turned a once-niche real-estate product into a hot commodity for landlords and contractors alike.
Demand for secure rooms is soaring.
Booming demand for SCIFs in the D.C. area
JLL’s secure environments group reports a 430 % increase in its SCIF inventory across Northern Virginia and Maryland over the past five years. The firm’s quarterly data show project volume climbing from 907,000 sq ft in 2023 to 1.3 million sq ft in 2024 and an expected 1.6 million sq ft in 2025.
Those figures line up with a jump in defense contracts in the region, which rose from $46.1 billion in 2023 to $76.3 billion in 2024 and are projected to reach $79.7 billion next year. “We’re in the boom,” said Brian Metras, head of JLL’s secure environments group. “We accredited 35 SCIFs last year. This year, we’re doing 45 SCIF spaces, 1.3 M SF, just in our group.”
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SCIFs are built to block radio, sound and electronic surveillance, allowing government officials and contractors to discuss classified matters. Because they cannot be repurposed easily, each new tenant triggers a full build-out from the shell, creating a supply bottleneck.
Smaller companies that previously lacked secure rooms now must incorporate SCIF components into their leases, further fueling construction activity.
Landlords and contractors scramble to meet demand
Landlords with existing SCIF expertise are capturing most of the business. Nicholas DiChiara, managing director at Savills, said the market is “virtually no supply” and that “99 times out of 100, someone’s going in there, they’re building their own SCIF.”
Developers such as HITT Contracting have seen inbound requests rise by 20 % to 30 % over the past 18 months, prompting a 10 % to 20 % expansion of their dedicated teams. “We’ve definitely seen a pretty significant uptick in inbound requests and conversations and current builds going on,” Vice President Cullen Hitt told Bisnow.
Construction firms are also feeling the pressure. Davis Construction’s secure-space director Dustin Hoffman admitted the firm is turning down projects because it cannot meet the current demand, noting that the company is now working on “10 to 20 SCIFs right now,” up from “five to 10” a few years ago.
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In a broader sense, the SCIF boom illustrates how a surge in government spending can create a ripple effect across a regional real-estate market, turning a specialized niche into a driver of office-space activity that would otherwise be stagnant.
Other landlords are trying to break into the sector, hoping that once a tenant moves in with a SCIF, the lease will lock them in for years. “They’re all trying to get into this market sector, because once they get one of these companies to move in their building, they’re locked in for a while,” Hoffman added.
Construction firms expand capacity to meet the surge
Companies that specialize in secure-space build-outs are rapidly scaling teams and investing in new technology to keep pace with the influx of projects. Conor Brandquist, senior vice president of Clune Construction, described the recent activity as a sharp upward curve, noting that his firm received a dozen opportunities in just the past six weeks. The firm has added staff and upgraded its equipment in anticipation of tighter security standards, even though the regulatory timeline remains fluid.
While some contractors are choosing to refurbish existing rooms, many are opting for fresh construction to avoid the complexities of retrofitting older shells. This preference aligns with statements from industry leaders who say that the cost-benefit analysis often favors new builds, especially when the required radio-frequency shielding must meet the latest specifications. As a result, the pipeline of projects now includes a mix of renovations and ground-up facilities across Northern Virginia and the District.
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Landlord competition intensifies as SCIF tenants lock in long-term leases
Property owners with a track record of delivering secure environments are increasingly viewed as preferred partners by defense contractors. The confidence placed in these landlords stems from their demonstrated ability to manage the stringent accreditation process, which many tenants consider a critical factor when selecting office space. This trust has translated into higher occupancy rates for buildings that already house SCIFs.
At the same time, other owners are actively seeking to break into the niche by partnering with experienced builders and brokers. Their goal is to attract tenants who require classified workspaces, knowing that such agreements typically span multiple years and provide a stable revenue stream. The competitive dynamic is prompting a wave of announcements from landlords eager to showcase their readiness to accommodate secure facilities.
JBG Smith’s recent shareholder communication highlighted that 92 % of its National Landing tenancy now includes a SCIF, a point the company’s chief executive emphasized as a distinctive advantage in discussions with prospective lessees. The firm also reported that its government-related tenancy has shifted almost entirely toward mission-critical occupants, reducing exposure to non-secure tenants.
Overall, the proliferation of SCIF construction is adding a layer of resilience to the regional office market. By generating demand for high-specification space, the sector is offsetting some of the broader leasing softness caused by federal cutbacks, while simultaneously creating a specialized market segment that rewards landlords and builders capable of meeting the heightened security requirements.