Suburban Maryland Office Market
|Average Asking Rent (Price/SF)|| $28.78|
|Vacancy Rate (%)|| 15.0%|
|Net Absorption (SF)|| -219,117|
Suburban Maryland’s office demand continued to soften during the third quarter of 2020 with negative 219,117 square feet of quarterly absorption, bringing year-to-date net absorption to negative 540,798 square feet. As a continued result of disruption related to COVID-19, market activity was modest, with limited leasing activity and few notable tenant moves. The overall vacancy rate registered 15.0% at the end of the third quarter, an increase of 40 basis points from the previous quarter but level with a year ago. Asking rental rates ended the third quarter of 2020 at $28.78/SF, an increase of 2.5% from $28.09/SF in the third quarter of 2019. While it may seem counterintuitive that asking rents increased despite negative demand for space, market forces often take a while to adjust, and it is likely effective rents will be flat to declining over the next year as owners increase concessions to lure tenants in an environment of tepid demand.