MacKenzie's Third Quarter Office Market Report
Monday, October 5, 2015
Posted by: Megan Mann
MacKenzie Commercial Real Estate Services, LLC is pleased to release their Third Quarter Office Market Report for the Baltimore Metropolitan Statistical Area which includes an overview from renowned economist, Anirban Basu, President of Sage Policy Group.
Vacancy for the Baltimore Metropolitan Office Market remained stable from the 2nd Quarter to the 3rd Quarter, increasing by a mere 0.09% for an average rate of 13.85%. The Southern Metro submarkets fared the best with an average vacancy rate of 11.68%, Columbia leading that area at 8.95% vacant. City Center continues to see a "flight to quality" movement as Class A+ vacancy hits a low of 5.11% and Class A remains elevated at 24.66%. The same can be said for Class B+ and B product, with vacancies of 11.74% and 27.23%, respectively. Absorption for the office market was a positive 173,132 sf. This brings the year -to-date total absorbed to 568,251 sf.
Like vacancy, overall average rental rates were steady for the Baltimore Metropolitan Office Market, increasing slightly by $0.26/sf from the 2nd Quarter rate of $22.50/sf to $22.76/sf. City Center Class A+ continues to command the highest rental rate, even after decreasing by $1.53/sf from the 2nd Quarter, for a 3rd Quarter rate of $27.93/sf; the lowest, City Center Class B at $16.89/sf. Only three other submarkets fall at $25.00/sf or more: Baltimore City North ($27.00/sf), Annapolis ($26.31/sf), and Columbia ($25.00/sf). Compared to the same quarter last year, vacancy rates for the entire office market have decreased by 0.90% and average rental rates have increased by $0.67/sf.
To view MacKenzie’s complete report including Mr. Basu’s overview, click here.
MacKenzie Ventures, LLC (MacKenzie) possesses the multi-disciplined team necessary to excel in Maryland’s corporate real estate community. Comprised of seven firms, MacKenzie provides clients a competitive, full service platform of offerings in leasing, sales, investment sales, tenant and landlord advisory services, corporate and business consulting, commercial and residential development, general construction, property and asset management, debt and equity capital placement, and market research. With more than 150 employees and offices in Annapolis, Baltimore, Bel Air, and Lutherville, Maryland, MacKenzie is one of the largest full service commercial real estate firms in the Mid-Atlantic. Please visit www.mackenziecommercial.com for more information.