Delta Associates’ Baltimore Office Market: Q3 2023

Net absorption in the Baltimore metro office market increased to 365,000 SF in the third quarter of 2023, up from -61,000 SF in the second quarter of 2023. Baltimore West/Owings Mills and Harford County were the only two submarkets with negative absorption at -18,000 SF and -37,000 SF, respectively over the quarter.

The direct vacancy rate for all classes of office space in the Baltimore metro area (including both single-tenant and multi-tenant properties) is 11.9% as of the third quarter of 2023, 30 basis points lower than the second quarter of 2023, and up 30 basis points year-over-year.

As of the third quarter of 2023, there is 1 million SF of office space under construction in the Baltimore metro area with most of it in the build-to-suit Under Armour and T. Rowe Price headquarters projects in Central Baltimore.

Office rents continued to trend upward in the Baltimore metro area during the third quarter, albeit much slower than the overall pace of inflation. The average effective rent for all classes of office space in the Baltimore metro area as of Q3 2023 is $21.09 per SF. This is a 1.1% increase quarter-over-quarter and a 1.0% increase year-over-year.

Demand for office space is increasing throughout the Baltimore metro area, primarily in the SW Baltimore/BWI and Anne Arundel South submarkets with net absorption of 150,000 SF and 112,000 SF, respectively. This positive net absorption in tandem with increasing rents shows positive signs for the Baltimore office market. However, the record low unemployment gives worrying signs for the metro area due to the already extremely thin labor market limiting future growth.


  • Net absorption: 365,000 SF in Q3 2023, up from -61,000 SF in Q2 2023.
  • Direct vacancy rate (single and multi-tenant): 9% as of Q3 2023, down30 basis points from Q2 2023 and up 30 basis points from one year prior.
  • Under Construction:0 million SF (down)
  • Effective rents: Up 1.0% from one year prior.
  • Investment sales:$65.4 million ($92/SF) during Q3 2023, compared to $81.3 million ($202/SF) during Q3 2022.

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 40 years.