Figures

Baltimore Office Figures Q4 2023

December 29, 2023 10 Minute Read

Looking for a PDF of this content?

The Baltimore office market posted its fourth consecutive quarter of occupancy loss, with 105,000 sq. ft. of negative absorption during the fourth quarter. Occupancy loss was largely driven by Allianz Trade vacating 60,000 sq. ft. at 800 Red Brook Boulevard in its move to 100 International Drive and several move-ins that were originally planned for this quarter but were delayed. Vacancy increased 10 basis points (bps) over the prior quarter to 19.1%, a new high for the market. 


Gross leasing activity increased to 1 million sq. ft. during the fourth quarter, marking the second highest quarter for leasing activity since the start of the pandemic and bringing year-end leasing totals to 2.9 million sq. ft. This represents an 112% increase in leasing compared to third quarter levels and is 56% above the average post-pandemic level of leasing. In total, 31 tenants signed leases over 10,000+ sq. ft. during Q4, up from 18 tenants during Q3. Activity in 2023 was driven by financial and business services and technology tenants, which leased more than 1.6 million sq. ft. combined; representing nearly 60% of all leasing activity during the year.


The amount of sublease space available in Baltimore continues to fluctuate. August marked an all-time high of 1.8 million sq. ft. available for sublease. As of November, sublease availability dropped to 1.6 million sq. ft., but this is still elevated 106% from pre-pandemic levels. Baltimore’s elevated sublease space is on par with national trends.