Suburban Maryland Office Market
|Average Asking Rent (Price/SF)||$30.75|
|Vacancy Rate (%)||18.9%|
Net Absorption (SF)
Suburban Maryland’s office market recovery softened in the third quarter of 2022. Net absorption totaled negative 197,341 square feet on the quarter, about half of the contraction registered in the second quarter. Few examples of net positive occupancy enabled the accumulation of significant negative net absorption. The overall vacancy rate registered 18.9% at the end of the third quarter, an increase of 100 basis points from second quarter, due to Marriott’s relocation, and an increase of 240 basis points from a year ago. The average asking rental rate measured $30.75/SF, an increase of 3.5% from the third quarter of 2021. Suburban Maryland’s construction pipeline shrank to its lowest level since 2017, measuring 414,746 square feet in the third quarter of 2022. The pipeline is approximately 36.7% preleased, indicating potential vacancy increases in the coming quarters.