TAKEAWAYS

• During Q3 there was little change in availability for the Suburban Maryland office market as the rate only increased by 10 basis points (bps) from the previous quarter. This tops the previous record for the highest availability rate the market has ever seen. The availability rate will continue to remain elevated until some of the 1.7 million square feet (msf) of available sublease space is expunged from the market.
• Overall rental rates slightly increased by 0.4% quarter over quarter to $30.42 per square foot (psf). Despite ample options in discounted sublease space, landlords are still confident in the flight to quality and occupiers' preferences for more expensive class A spaces.
• Hybrid remote work policy is still evolving, but flexibility regarding both lease terms and build-out, is at the forefront of occupiers' minds as they evaluate their workplaces and how to retain employees.

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