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Renter Demand Improves in City’s Core;
Property Sales Dispersed Across Metro
Downtown initiatives buttress supply intake. About half of the 3,100 units scheduled for completion this year will be in the central business district. Such concentration appears warranted, however. Last year, downtown Baltimore’s vacancy rate dropped over 100 basis points to below 6 percent, with compression across all property tiers supporting the highest net absorption total of any submarket. Robust demand helped concession offerings here decline to match the national rate going into 2025, paving the way for rent growth. This positive momentum is aided by Maryland’s ongoing $6.9 billion redevelopment initiative for the CBD. Aiming to improve underutilized commercial properties and infrastructure, the state is awarding grants to enhance building exteriors, restore public parks and replace abandoned public structures with green spaces to boost pedestrian activity downtown. Meanwhile, with construction centered in the core, there is a scarcity of apartments being developed in the suburbs. This may lead to outperformance in areas such as the Columbia-North Laurel submarket, where a lack of significant projects last year was met with a level of demand that lowered vacancy below 5 percent.