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LITTLE CHANGE IN LEASING
Quarterly leasing activity failed to reach 1.0 million square feet (msf) for the third consecutive quarter, with very few leases over 50,000 sf. Demand for newly constructed product remains elevated. Tenants have leased a total of 3.3 msf during the last four quarters.
AVAILABILITY DECLINES SLIGHTLY
The region’s total availability rate declined by 30 basis points to 17.3%, and has fallen by 10 basis points year-on-year. The Class A availability rate also declined 30 basis points to 18.7%.
RENT FLAT
Overall asking rent for the Baltimore region fell slightly (by 0.3%) from $23.40 to $23.33. Class A rent fell by 2.7% from $27.14 to $26.40.
SALES DOWN
Office property sales during the first seven months of the year totaled $407 million, a 52% decrease compared to the first seven months of 2017.
"Demand for office space, from both investors and buyers, remains choppy. Fully leased newer assets with proximity to mass transit continue to garner the strongest demand as well as elevated rent and pricing. Older buildings scattered across the region are struggling to maintain leasing velocity.”
Savills Studley Research