Suburban Maryland office market reports
Suburban Maryland’s office performance is facing headwinds as new developments from Rockville to Bethesda are taking center stage. While there have been signs of strength in the life science and biotech sectors, particularly for lab space, net absorption in core areas continue to trend downwards putting pressure on owners to consider new uses for existing office.
Despite deliveries, the existing figure is virtually unchanged year-over-year due to buildings being removed from inventory.
Occupancy losses for the quarter were roughly 752,000 sf, or 1.0% of inventory, marking the third consecutive quarter of negative absorption.
Direct asking rent
Average direct asking rent of $28.71 psf is up 0.7% year-over-year, belying the fact that net effective rates are down due to elevated concession packages.
Direct availabilities have reached the highest point in the past several years, and while sublet space (1.6 msf) is elevated, it is not a peak figure.
The total overall vacancy rate of 16.9% is at a record-high level and up 140 basis points year-over-year.
While Q1 total sales volume ($49.7M) dipped compared with the past two quarters, volume is up 33% year-over-year.
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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.
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