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Availability drops to its lowest in over a decade, asking rents rise in response
Suburban Maryland’s overall availability rate dropped significantly in 2019, down 50 basis points quarter over quarter, and 210 basis points year over year, closing at 18.8% - its lowest since 2008. With lowering availability, asking rents increased 5.4% year over year to $28.80 per square foot (psf) for all classes. Class A asking rents experienced a sharper increase, up 7.1% to $31.09 psf in Q4. Rising Class A asking rents accompany the delivery of premium space, particularly in Montgomery County. However, even with the tightening in availability this year, landlords are still competing to fill their buildings and offering generous concessions to entice tenants. Current concession offerings are averaging $90.00 psf in tenant improvement allowances, and up to 11 months of free rent on new, long-term, Class A leases.