Asking rents for Baltimore metro area offices increased to the highest level in five years during the first three months of the year while vacancies stabilized, a real estate report by Newmark Knight Frank shows.
The average asking rent in the January-to-March period increased 8 cents per square foot to $23.41 per square foot compared with the fourth quarter of 2017, the market analysis shows.
The office vacancy rate remained at 12.7 percent, the same as during the fourth quarter of 2017. Nearly 30,000 square feet of net new space was leased during the first quarter this year, the report said, marking the fifth consecutive quarter of positive absorption.
Average asking rents have increased by 59 cents per square foot since the beginning of 2017, showing strong demand for Baltimore’s office space, the report said.
The report noted an improvement over the past year in Baltimore’s central business district, where vacancies declined slightly and asking rents increased by $1 per square foot over the past year to $23.11 per square foot.