Suburban Maryland Office Market
Suburban Maryland’s net absorption stayed relatively flat during Q3 2024, totaling negative 10,943 square feet. Overall vacancy ended the quarter at 19.7%, flat quarter-over-quarter and 170 basis points higher year-over-year. After a building boom over the past five years, the pace of new construction deliveries has begun to slow. 2023 only saw two office deliveries in Suburban Maryland and there have been no deliveries in 2024. Furthermore, only one property remains under construction in the market. As in other markets, rents for Class A and trophy space in Suburban Maryland have outperformed Class B and C space. In terms of lease type, renewals continue to drive leasing volume as the four largest leases of the third quarter were renewals.