Suburban Maryland office market reports

Q3 2022

Suburban Maryland’s Q3 office performance is showing signs of slowing tenant activity as landlords explore the potential of converting older, commodity office buildings to residential and lab on a go-forward basis rather than find a large office tenant to backfill the space. Lab conversions are top of mind for investors, however, the process to convert an office to lab use is trickier than meets the eye with regard to infrastructure requirements. Moreover, rising construction costs will make it even more difficult for owners with an existing high basis to convert their property.
79 msf

Inventory

One building has come online year-to-date, and the development pipeline has thinned as developers are reluctant to build speculatively.
-405 ksf

Net absorption

As companies continue to ‘right size’, occupancy losses for the quarter amounted to about 0.5% of inventory.
$28.32 psf

Direct asking rent

While high concession packages are putting downward pressure on net effective rents, asking rates remained relatively stable in recent years.
16.7 msf

Availabilities

Elevated total availabilities, including 1.7 msf of sublet space, persist and have again reached the highest point in the past several years.
18.9%

Vacancy

The total overall vacancy rate continued its upward trajectory, ending the quarter 370 basis points higher than in Q2 2021.
$384 mm

Investment sales

Quarterly sales volume reached the highest level since Q4 2019, a sign of life for the market.
DOWNLOAD SUBURBAN MARYLAND OFFICE MARKET REPORT

Your source for the latest Suburban Maryland office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Washington, DC Metro area. Avison Young advisors look at Suburban Maryland commercial real estate activities and the latest Suburban Maryland statistics to provide you expert market research on Suburban Maryland's office properties.

Explore different topics like the latest office market pricing trends and analysis of Suburban Maryland's current office real estate market conditions. Gain a better understanding of Suburban Maryland’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Suburban Maryland's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Suburban Maryland.

The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.

Get the latest Suburban Maryland office market reports right in your inbox

The Vitality Index
Measuring the return of people and places

After two and a half years of unprecedented disruption to how we work and live, companies across North America continue to grapple with uncertainty. What will the future of work look like? Are city downtowns regaining their pre-pandemic vitality? How will societal, cultural and environmental shifts shape the next normal?

Click here to view the new 2022 Vitality Index

Hero Image