Baltimore Metropolitan Area Office Market
After the market experienced almost 1.2 MSF of negative net absorption from 2020 to 2022, the market rebounded in 2023, ending the year with 63,000 SF of positive net absorption. The market has continued the positive momentum from 2023, experiencing 324,000 SF of positive net absorption through the first three quarters of 2024, despite seeing 31,000 SF of negative net absorption during Q3 2024. Although the market’s vacancy remains above the historical average of 13.7%, the vacancy rate has stabilized and remained relatively flat since the end of 2022, ending Q3 2024 at 15.4%. Development has been muted the past few years, which continued in Q3 2024 with no deliveries. Furthermore, there are three properties totaling 588,000 SF under construction, well below the market’s decade average of 788,000 SF under construction.
Download Baltimore Office Market Report 3Q24
Baltimore Industrial Market
The Baltimore industrial market experienced over 700,000 SF of positive net absorption during Q3 2024 and ended the quarter at a 6.1% vacancy rate, flat quarter-over-quarter but an increase of 70 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 38.9% of overall leasing volume during Q3 2024. This is higher than the decade average of 35.5% and highlights the elevated interest in quality Class A space by occupiers. Average asking rents increased year-over-year and continue to sit near record highs, ending Q3 2024 at $8.38 PSF, an increase of 1.6% year-over-year.