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Market Report

Baltimore Office Market Report

2Q 2023

Early Signs of Stabilization Emerge in Baltimore’s
Office Sector Amid Uncertain Economic Conditions

Positive net demand spurs optimism. Baltimore’s office market is beginning to show modest signs of a recovery. Vacancy fell by 10 basis points year-over-year in March, as the metro recorded four consecutive quarters of positive net absorption. Much of this progress is being driven by leasing in the CBD. State agencies, such as the Departments of Labor, Health and Human Services, committed to large blocks of space downtown, lowering availability in the urban core to 10.8 percent during the first quarter, the lowest rate since early 2018. Tenants have also been actively seeking space in suburban submarkets. In recent quarters, notable tech companies like Microsoft and Amazon Web Services signed deals at the National Business Park in Jessup, while Element Fleet Management inked a new lease in Owings Mills. Although hybrid work schedules and economic uncertainty still pose questions regarding future office demand, vacancy is expected to remain relatively steady throughout 2023.
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