Baltimore Office Market Report

As tenants relocate to the core, suburban builds face challenges. While the public agencies of many markets downsized over recent years, the State of Maryland has upped its commitment to Baltimore’s office sector. Several departments will shift into larger footprints in Downtown by April, occupying 1 million square feet of space. These actions could tighten local vacancy, as the CBD expects nominal completions moving forward. New supply will be concentrated in Southeast Baltimore City instead this year. Roughly 730,000 square feet of local deliveries will be built-to-suit, a positive note in a submarket where vacancy almost tripled from 2019 to 2024. Elsewhere, roughly 60 percent of additions remain without a tenant. While the state’s efforts to revitalize Downtown’s office sector could have more positive spillovers down the line, Baltimore all-in-all expects an overall downshift in property performance this year, mostly due to the large amounts of speculative space coming to market outside of the core and its adjacent neighborhoods.