Baltimore Metropolitan Area Office Market
After the market experienced almost 1.2 MSF of negative net absorption from 2020 to 2022, the market rebounded in 2023, ending the year with 46,000 SF of positive net absorption. The market continued the positive momentum from 2023, experiencing 50,000 SF of positive net absorption during 2024. To begin 2025, however, the market saw slight negative activity, with 38,000 SF of negative net absorption during the first quarter. Although the market’s vacancy remains above the historical average of 14.1%, the vacancy rate has stabilized and remained relatively flat since the end of 2022, ending Q1 2025 at 15.7%. Development has been muted the past few years, which continued in Q1 2025 with no deliveries. Furthermore, there is only one property totaling 138,000 SF under construction, well below the market’s decade average of 700,000 SF under construction.
Download Baltimore Office Market Report 1Q25
Baltimore Industrial Market
The Baltimore industrial market experienced over 420,000 SF of negative net absorption during Q1 2025. Due to this, it ended the quarter at a 6.5% vacancy rate, an expansion of 20 bps quarter-over-quarter and 90 bps year-over-year. Despite this expansion in vacancy, the market remains much tighter than the long-term average of 8.3%. Despite average asking rents decreasing slightly year-over-year, they continue to sit near record highs, ending Q1 2025 at $8.16 PSF. Development remains at healthy levels, with the market ending Q1 2025 with almost 3.6 MSF of product under construction across 14 properties. This level of construction is above the decade average of 3.1 MSF of space under construction