Baltimore Metropolitan Area Office Market
After the market experienced over 1.2 MSF of negative net absorption from 2020 to 2022, the market rebounded in 2023, ending the year with 156,000 SF of positive net absorption. The market began 2024 on a down note, with 77,000 SF of negative net absorption during the first quarter but drastically increased in the second quarter. The second quarter positive net absorption was 612,796 SF, bringing the year-to-date net absorption to 545,581 SF. Although the market’s vacancy remains above the long-term average of 14.1%, the vacancy rate has decreased by 70 basis points quarter-over-quarter to 15.0% in the second quarter. Leasing activity during Q2 2024 was below the market’s historical average. There are five properties totaling 735,000 SF currently under construction, below the market’s decade average of 809,000 SF under construction.
Download Baltimore Office Market Report 2Q24
Baltimore Industrial Market
The Baltimore industrial market experienced 925,700 SF of negative net absorption during Q2 2024 and ended the quarter at a 5.8% vacancy rate, an increase of 10 bps quarter-over-quarter and 50 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 41.6% of overall leasing volume during Q2 2024. This is higher than the decade average of 39.8% and highlights the elevated interest in quality Class A space by occupiers. Average asking rents decreased year-over-year but continue to sit near record highs, ending Q2 2024 at $8.09 PSF, and decrease of 2.6% quarter-over-quarter and 3.5% year-over-year.