Baltimore Office Market
| Average Asking Rent (Price/SF) | $25.11 |
| Vacancy Rate (%) | 15.9% |
| Net Absorption (SF) | 141,869 |
The Baltimore Metro area’s office market exhibited modest tightening in the third quarter of 2022, breaking from an extended period of occupancy contraction and vacancy growth. Net absorption measured 141,869 square feet in the third quarter of 2022 and year-to-date net absorption measured negative 544,887 square feet. Positive absorption was not concentrated in any specific submarket, highlighting a market-wide moderation in occupancy contraction. Asking rents averaged $25.11/SF in the third quarter, up 1.3% from one year ago. Face rents have been modestly increasing since last year, as flight to quality remains a growing trend in real estate demand. Leasing activity is relatively low, but on the rise and has been distributed throughout.
Baltimore Industrial Market
| Average Asking Rent (Price/SF) | $6.31 |
| Vacancy Rate (%) | 5.1% |
| Net Absorption (SF) | 79,936 |
Baltimore’s industrial market fundamentals remain relatively tight, under the influence of pandemic-driven demand for ecommerce distribution centers. The average asking rent increased by 8.4% in the last year, measuring $6.31/SF in the third quarter of 2022. Rental rates only increased $0.05/SF from second-quarter, signaling a slowdown in appreciation through the summer. The vacancy rate remained unchanged from last quarter, measuring 5.1%. The market recorded 79,936 square feet of net absorption in the third quarter, a noteworthy decline from prior quarters. Quarterly net absorption has been strong since fourth-quarter 2021, illustrating that industrial demand can remain robust despite the cultural shift toward post-pandemic normalcy, which has been underway for the last year.