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Market Report

Baltimore Office Market Report

4Q 2023

Baltimore City Hosts Most Supply Underway,
Where New Builds Should be Well-Received

Metro’s office segments avoided rising vacancy in the first half. In Baltimore, net absorption is poised to return to positive territory through 2023. Companies have absorbed a net of 305,000 square feet over the first half, and several federal agencies — along with CFG Bank and CMP Medical — are slated to expand into 228,000 square feet in the final six months. This rekindling of leasing activity, following a three-year span where a net of 1.6 million square feet was relinquished, is bringing greater stability to Baltimore’s office sector, with the effects being felt across segments. Vacancy among top-tier offices in the metro fell by 20 basis points over the first two quarters of the year, to 20.4 percent, while the B/C rate held steady at 9.9 percent. Milder supply in 2023 should also relieve upward pressure on the Class A metric over the near-term, as this year’s projected 0.3 percent expansion will be about one-fourth of the long-term pace. 
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