Suburban Maryland Office Market
Suburban Maryland saw positive activity during Q1 2025, with 217,000 SF of positive net absorption. This positive net absorption puts the market on a trajectory to have its most positive year since 2019. Overall vacancy ended the quarter at 19.8%, tightening 30 bps quarter-over-quarter, however expanding 30 bps year-over-year. After a building boom over the past five years, the pace of new construction deliveries has begun to slow. There were only two office deliveries in Suburban Maryland in 2023 and no deliveries in 2024. Furthermore, 1600 Rockville Pike is the only property that remains under construction in the market, totaling 237,000 SF. Asking rents continued to rise through 2024, however at a decelerating pace relative to recent years. To begin 2025, however, asking rents have seen a decline, ending Q1 2025 at $31.62 PSF across all asset types, a decrease of 0.4% year-over-year.