Suburban Maryland Office Figures Q3 2026

The Suburban Maryland office market rebounded in Q3, offsetting the entirety of contraction recorded in Q2. Year-to-date occupancy growth now stands at just under 96,000 sq. ft. As a result, the overall vacancy rate improved by 40 basis points (bps) quarter-over-quarter to 21.4%. This improvement was largely driven by the five largest leases signed this quarter, all of which contributed to market growth. At the same time, the market avoided any significant move-outs or large-scale downsizing activity during the quarter. Additionally, three multi-property office parks in Bethesda—Bethesda Crescent, Bethesda Towers and the Montgomery Building— announced plans to convert the buildings into multifamily assets, effectively taking them out of the market’s inventory and helping to drive vacancy down.