Suburban Maryland Office Market
- After the market experienced three straight years of negative net absorption from 2020-2022, the market has experienced over 200,000 square feet of positive net absorption in 2023.
- Vacancy tightened 50 basis points to 18.1% after the market saw a historically high vacancy rate of 18.6% during the second half of 2022.
- Although most markets saw rents flatten over the past few years, Suburban Maryland performed exceptionally well in this regard. Since 2020, Suburban Maryland has seen positive rent growth of at least 2.0% each year and ended Q3 2023 12.1% higher than the beginning of 2020. This growth could be attributed to an increase in demand with tenants relocating from high-cost urban areas to low-cost suburban areas.
- There are three properties totaling 415,000 square feet of space under construction in the market. These properties are spread out in the market, located within Silver Spring, North Bethesda, and Rockville.