Absorption increased significantly across the Baltimore metro area over the year. In the prior 12-month period, annual absorption was quite weak with 232 units compared to 1,263 units over the past 12 months. Over the last 12 months, 1,599 units delivered, a small increase over the 1,247 that were brought to market in the year ending September 2022. Meanwhile, annual rent growth is below average at 1.6% across the metro area.
THIRD QUARTER 2023 HIGHLIGHTS
- Stabilized vacancy in the Baltimore metro area increased 50 basis points from 2.5% a year ago to 3.0%. The vacancy rate in the suburbs is up by 40 basis points from 2.1% a year ago to 2.5%.
- Average effective rents in the metro area are $2,078 ($2.19 per SF). Rents are up over the year by 1.6% metro-wide. Rent growth was strongest in the Southern Suburbs – up by 3.8%, followed by Baltimore City with a 1.4% increase. The Northern Suburbs had negative rent growth of -1.3% over the year ending in September 2023.
- Absorption over the year was 1,263 units, which was significantly higher than a year ago.
- The supply pipelinemetro-wide experienced a 6% increase over the year. There are 5,735 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 27%.
- Per project lease-up pacefor the nine actively marketing projects in the Baltimore metro area currently averages 19 units per month, upfour units 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.
