Suburban Maryland Office Market
| Average Asking Rent (Price/SF) | $30.39 |
| Vacancy Rate (%) | 17.2% |
| Net Absorption (SF) | -183,027 |
Suburban Maryland’s office market recovery softened in the first quarter of 2022. Net absorption totaled negative 183,027 square feet on the quarter, almost double what it was last quarter. The overall vacancy rate was 17.2% at the end of the first quarter, an increase of 20 basis points from the previous quarter and an increase of 170 basis points from a year ago. The average asking rental rate measured $30.39/SF, an increase of 4.2% from the first quarter of 2021. Soft market fundamentals in Suburban Maryland should tighten over the next year; leasing activity is increasing, but should accelerate in 2022, as this should be the year market activities normalize. The elimination of indoor mask mandates in Montgomery and Prince George’s Counties in February is a major step towards a return to normalcy and acceptable office occupation for employers and employees.