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LEASING FALLS
Following a strong quarter of activity, with 1.1 million square feet (msf) leased – quarterly activity dropped to approximately 900,000 sf. Tenants have leased 3.7 msf in the four most recent quarters, well below the long-term market average.
AVAILABILITY DECLINES
The market's overall availability rate fell by 70 basis points from 17.0% to 16.3%. The Class A availability rate decreased by 40 basis points to 17.6%.
RENT PUSHES HIGHER
Asking rent in the region rose from $22.40 to $22.95, increasing by 2.4% in the first quarter. The average Class A rent inched up from $26.64 to $26.91, a 1% increase.
SALES DOWN
Office property sales in the last six months through February of 2018 decreased by 22%—totaling $342 million, down from $437 million in the previous six months.
"Baltimore’s economy and office market continue to display signs of an uneven recovery. Job growth has been sustained in healthcare as well as logistics and distribution, but hiring has lacked consistency in core office-using sectors. Additionally, a few areas including Pratt Street, Howard County and Annapolis have captured the most dynamic leasing, outperforming more erratic leasing in the balance of the market. ”
Savills Studley Research