Absorption increased significantly across the Baltimore metro area in the 12-month perios ending March 2024. In the previous year, annual absorption was quite weak with 284 units compared to 1,618 units absorbed in the 12-month period ending March 2024. Over the past 12 months, 2,023 units delivered, a 36% increase over the 1,484 that were brought to market in the prior period ending March 2023. Meanwhile, annual rent growth is well below the long-term average at 1.5% across the metro area.
FIRST QUARTER 2024 HIGHLIGHTS
- Stabilized vacancy in the Baltimore metro area decreased 10 basis points from 3.4% a year ago to 3.3%. The vacancy rate in the suburbs increased by 10 basis points to 2.9% over the same period while a 70 basis-point decrease was recorded in Baltimore City, down to 4.1%.
- Average effective rents in the metro area are $2,057 ($2.17 per SF). Rents are up by 1.5% metro-wide in the 12-month period ending March 2024. Rent growth was strongest in the Southern Suburbs – up by 3.4%, followed by the Northern Suburbs with a 0.7% increase. Baltimore City had negative rent growth of -0.1%.
- Absorption in the 12-month period ending March 2024 was 1,618 units, which was significantly higher than the prior 12-month period.
- The supply pipelinemetro-wide experienced a 35% decrease over the 12-month period ending March 2024. There are 4,068 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 down by roughly 31%.
- Per project lease-up pacefor the 12 actively marketing projects in the Baltimore metro area currently averages 16 units per month, up four 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.
