Baltimore Office Market Report
Loosening Restrictions and Heightened Leasing
Activity May Signal a Turning Point
Pandemic-induced effects less severe in Baltimore. Entering the second quarter, local vacancy sat at 13.8 percent, undercutting the average of the top 20 largest office markets by inventory, which was 16.8 percent. Of this group, Baltimore is one of two metros to record vacancy expansion of less than 200 basis points since the onset of the health crisis. Looking ahead, favorable signs have emerged that provide optimism for the region. Positive net absorption returned in the trailing 12-month period ending in March, and the easing of pandemic restrictions in Baltimore County has eliminated logistical challenges associated with bringing employees back to offices. Additionally, firms in both the public and private sector are taking large blocks of space off the market, with Microsoft and the State Department of Human Services each recently committing to leases over 150,000 square feet.