Baltimore Metropolitan Area Office Market
After the Baltimore office market experienced ten straight years of positive net absorption from 2009 to 2019, the market has seen three years of negative net absorption from 2020 to 2022. So far in 2023, the market has only experienced 24,000 square feet of negative net absorption, hinting that the negative effects of the pandemic could be softening. Rents performed better than most markets during the initial two years of the pandemic, with rents increasing 3.7% from the beginning of 2020 to the end of 2022, however, rents have begun to flatten during 2023. Sales volume improved during Q3 2023, totaling $124 million across 57 transactions, which is the most active third quarter the market has seen since 2018.
Baltimore Industrial Market
The Baltimore industrial market experienced over four million square feet of positive net absorption during both 2021 and 2022, however, activity has slowed in 2023 as the market has experienced 435,000 square feet of positive net absorption year-to-date. Although the market has experienced positive net absorption, it has been counteracted by unoccupied deliveries which has led to an expansion in the vacancy rate, ending Q3 2023 at 5.9%. Average asking rents continue to sit near record highs, ending Q3 2023 at $8.19 per square foot, an increase of 23.0% year-over-year.