Absorption increased significantly across the Baltimoremetro area in 2023. In 2022, annual absorption was quiteweak with 244 units compared to 1,760 units absorbedin 2023. Over the past year, 2,209 unitsdelivered, a 127%increase over the 972 that were brought to market in2022. Meanwhile, annual rent growth is well below thelong-term average at 1.5% across the metro area.
FOURTH QUARTER 2023 HIGHLIGHTS
- Stabilized vacancy in the Baltimore metro areadecreased 10 basis points from 3.5% a year ago to3.4%. The vacancy ratein the suburbs remainedunchanged over the same period.
- Average effective rents in the metro area are $2,030($2.14 per SF). Rents are up by 1.5% metro-wide in2023. Rentgrowth was strongest in the SouthernSuburbs – up by 3.5%, followed by Baltimore Citywith a 1.1% increase. The NorthernSuburbs hadnegative rent growth of -0.9%.
- Absorption in 2023 was 1,760 units, which was significantly higher than a year ago.
- The supply pipelinemetro-wide experienced a 10% decrease over the year. There are 5,120 unleased units under construction or planned for delivery in the next 36 months in the metro area, after attrition. Meanwhile, in Baltimore City, the 36-month development pipeline is up by nearly 7%.
- Per project lease-up pacefor the 12 actively marketing projects in the Baltimore metro area currently averages 18 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.
