Quarterly leasing activity totaled only 0.8 msf, without any new leases exceeding 50,000 sf. A majority of leases have come from existing tenants renewing in their current spaces. Tenants have leased a total of 3.5 msf during the last four quarters.
The region’s availability rate dropped by 50 basis points to 15.9% and has fallen by 70 basis points year-on-year. The Class A availability rate declined by 40 basis points in the quarter and has dipped by 20 basis points year-on-year. Construction was slow in the prior three quarters, but several new buildings broke ground recently. If the development pipeline begins to increase again we may expect availability to also rise with new future product options.
RENT UP SLIGHTLY
Overall asking rent for the Baltimore region increased by 1.3% to $23.20. Class A asking rent inched up by 0.6% to $27.09.
Office property sales in the last six months (through May of 2018) increased by 16%— totaling $466 million, up from $400 million in the previous six months.
"A handful of areas stand out as outperforming others in terms of sustained leasing and limited availability – the microdistrict surrounding Pratt Street Corridor, the greater Central Business District of Baltimore and new amenity-laden product in Howard County. In the balance of the market, demand is a bit choppier, creating favorable terms for tenants.”Savills Studley Research