Baltimore Metropolitan Area Office Market
- –After the market experienced over 1.2 MSF of negative net absorption from 2020 to 2022, the market rebounded in 2023, ending the year with 156,000 SF of positive net absorption. The market began 2024 on a down note, with 77,000 SF of negative net absorption during the first quarter.
–Although the market’s vacancy remains above the long-term average of 14.1%, the vacancy rate has remained relatively flat since 2022. To provide further optimism, leasing activity during Q1 2024 was on pace with the market’s historical average.
–There are five properties totaling 792,000 SF currently under construction, on par with the market’s decade average of 796,000 SF under construction.
Baltimore Industrial Market
- ‒The Baltimore industrial market experienced 575,000 SF of negative net absorption during Q1 2024 and ended the quarter at a 5.6% vacancy rate, an increase of 30 bps quarter-over-quarter and 10 bps year-over-year. Despite this expansion in vacancy, the market remains much tighter than the long-term average of 9.4%.
‒Class A product saw 49.7% of overall leasing volume during Q1 2024. This is higher than the decade average of 36.3% and highlights the elevated interest in quality Class A space by occupiers.
‒Average asking rents rose moderately year-over-year and continue to sit near record highs, ending Q1 2024 at $8.29 PSF, an increase of 0.5% quarter-over-quarter and 2.9% year-over-year.