Mid-Atlantic Research Reflections 2022 - Baltimore

The Baltimore metro area has more than 1.4 million workers, including 220,000 employed within the government sector. Federal, state and local government tenants signed leases totaling 503,000 sq. ft. this year, accounting for 23% of all leasing in the region. State government leasing is expected to remain active, as agencies look to relocate from State Center Complex. Government tenants have been a source of growth for the Baltimore office market this year, bucking the trend of government consolidations in Washington, D.C.

However, the Baltimore office market has seen uneven recovery from the pandemic. Vacancy remains elevated at 17.5%, up 250 basis points (bps) from Q4 2019 levels. Leasing activity is currently 33% below pre-pandemic averages, although some submarkets are outperforming the overall market. Columbia has been the most active submarket so far this year, with 16 tenants signing leases totaling 560,000 sq. ft., representing 25% of gross leasing across Baltimore.