Baltimore Office Market
The Baltimore metro area's office market continued to tighten in the first quarter of 2017, as 225,927 square feet was absorbed, resulting in a 10-basis-point drop in overall vacancy to 12.9%. This sturdy absorption and decline in vacancy occurred even as deliveries also continued to surge, as 303,080 square feet of office space came onto the market during the quarter, in addition to the 1.7 million delivered in 2016. As a result, the standing inventory of office space has increased to 79.5 million square feet, up from 79.0 million square feet last quarter and 77.4 million square feet one year ago.
Baltimore Industrial Market
Baltimore's industrial market continued last year's positive trends into early 2017 with sturdy absorption, declining vacancy and steady average asking rents. The overall vacancy rate declined 20 basis points during the first quarter of 2017, aided by limited deliveries. On balance, conditions tightened during 2016 and the market is poised for further tightening in 2017, even as Baltimore's construction pipeline continues to expand.