Suburban Maryland Office Market Report

Suburban Maryland Office Market

Relatively steady and strengthening market fundamentals in Suburban Maryland should persist in the coming quarters, resulting in net neutral to slightly positive demand. However, recessionary pressures may continue to slightly soften market conditions in early 2023. Suburban Maryland’s construction pipeline is unchanged from last quarter, yet at its largest since the second quarter of 2022. Nonetheless, Suburban Maryland’s construction pipeline maintains the lowest prelease rate in the metro area, at just 17.2%. Suburban Maryland’s overall vacancy rate is expected to remain unchanged, at 18.1% by the end of the first quarter of 2025. Likely, many of the companies who have sought a flight to quality have already done so, and those tenants maintaining some or all their Class B occupancy have already chosen to stay. These trends should be beneficial for the longer-term strength and stability of both Suburban Maryland’s Class A and Class B office markets.