Absorption dropped across the Baltimore metro area over the year by more than 50%. In the prior 12-month period, annual absorption was quite strong with 1,548 units compared to 702 units over the past 12 months. Over the last 12 months, 1,684 units delivered, a large increase over the 275 that were delivered in the year ending June 2022. Meanwhile, annual rent growth is below average at 1.7% across the metro area.
SECOND QUARTER 2023 HIGHLIGHTS
- Stabilized vacancy in the Baltimore metro area increased 50 basis points from 1.7% a year ago to 2.2%. The vacancy rate in the suburbs is up by 50 basis points from 1.6% a year ago to 2.1%.
- Average effective rents in the metro area are $2,058 ($2.17 per SF). Rents are up over the year by 1.7% metro-wide. Rent growth was strongest in the Southern Suburbs – up by 3.1%, followed by Baltimore City with a 1.7% increase. The Northern Suburbs had negative rent growth of -0.5% over the year ending in June 2023.
- Absorption over the year was 702 units, which was over 50% lower than a year ago. This is an improvement over the first quarter, when annual absorption was even lower.
- The supply pipelinemetro-wide experienced a 35% increase over the year. There are 5,968 unleased units under construction or planned for delivery in the next 36 months in the metro area after attrition. In Baltimore City, the 36-month development pipeline is up by 39%.
- Per project lease-up pacefor the nine actively marketing projects in the Baltimore metro area currently averages 15 units per month, down one unit from the same period last year.
Delta Associates, the research affiliate of Transwestern, is a firm of experienced professionals which has been providing consulting and subscription data services to the commercial real estate industry for over 40years.