LEASING FALLS IN 2018
Quarterly leasing activity failed to reach 1.0 million square feet (msf) for the fourth consecutive quarter, and fell by nearly 10% to just under 700,000 sf. Tenants leased a total of 2.8 msf during 2018 – a sharp decrease from the 4.1 msf leased in 2017.
AVAILABILITY FALLS
The region’s total availability rate dropped by 136 basis points to 16.5%, and has fallen by 50 basis points year-on-year. The Class A availability rate declined by 56 basis points to 18.5% during the fourth quarter.
RENT FLAT
Overall asking rent for the Baltimore region inched higher, ticking up from $23.45 to $23.63. Class A rent rose by 1.0% from $26.13 to $26.40.
SALES DOWN
Office property sales during the first 11 months of 2018 totaled $996 million, a 15% decrease compared to the same period during 2017.
"Baltimore’s office market ended the year much as it began – with tepid leasing and ample availability in much of the region. Conditions are tighter in a few areas, but most tenants are in a strong position to negotiate favorable terms heading into 2019."
Savills Studley Research