BALTIMORE OFFICE MARKET
| Total Inventory (SF) |
72,389,948 |
|
| Vacancy Rate (%) |
Total |
16.5% |
| |
Direct |
15.2% |
| |
Sublet |
1.3% |
| Average Asking |
Total |
$22.83 |
| Rental Rate (Price/SF) |
Direct |
$23.27 |
| |
Sublet |
$19.29 |
| Net Absorption |
2Q10 |
146,765 |
| |
1Q10 |
278,850 |
| |
4Q09 |
206,705 |
| Under Construction (SF) |
|
133,600 |
In the second quarter of 2010, the vacancy rate rose a bit to 16.5% from 16.3% in the first quarter, and was up from 15.6% reported one year ago. Net absorption was positive as 146,765 square feet were removed from the market. In the first half of 2010, 425,615 square feet of space were removed from the market. The average asking rental rate rose to $22.83/sf in the second quarter from $22.42/sf in the first quarter and was unchanged from one year ago. At the end of the second quarter, 714,353 square feet of space remained under construction.
The Bureau of Labor Statistics reported that the unemployment rate for the Baltimore area was 7.4% in May 2010, compared to 7.3% in May 2009. The Bureau of Labor Statistics reported that total nonfarm employment in the Baltimore area fell by 0.1% in the 12 months ending in May, indicating a loss of 900 jobs. The BLS also reported that the Consumer Price Index for the area had grown 1.9% for the 12 months ending in May.