Baltimore Office Market Report

Corporate lessees reconfigure presence locally. Despite disruptions to the public sector, Baltimore’s overall office vacancy rate fell last year for the first time in half a decade, underscoring the strength of local private industry. Prominent white-collar firms are recommitting to the market. TESSCO moved into a larger space in Hunt Valley last year, while PricewaterhouseCoopers will relocate to Locust Point in 2026. The Harbor area, in general, remains a focal point for space demand, with local vacancy falling 200 basis points last year. Outside the city, Ellicott City-Columbia also saw a sharp vacancy drop as tenants filled much of 2024’s completions. This year, a handful of large projects will account for the bulk of the market’s smaller overall delivery slate, split mainly between the city of Baltimore and Howard County. Such localized supply pressures could dampen submarket-level performance gains, but the metro overall is expected to see a greater vacancy decline in 2026 than in 2025. Private investors becoming more active. Transaction velocity in the $1 million to $10 million tranche last year had risen to the level of the metro’s 2014-2019 annual average. Deals were most common within the city limits, typically involving Class B buildings. Private buyers targeting 10,000- to 30,000-square-foot builds with sales prices between $50 and $100 per square foot may look here again in 2026. Mid- and low-tier vacancy in the 4 percent range in the CBD should hold investors’ attention. Buyers seeking higher-end, stabilized properties may turn to Southern Anne Arundel County again. Last year, the typical price per square foot was closer to $150, and properties were usually at least 70 percent leased. The submarket’s vacancy rate closed out 2025 in the 9 percent band, which may add to the area’s appeal if it holds in 2026.