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Amenity-rich, Class A product and new construction have driven office rent growth, but rate has slowed Q2

  • ​New deliveries, including projects in Downtown Columbia and Maple in Howard County, drove Class A rates sharply upwards over the past several quarters. Existing buildings along the waterfront in Baltimore City and amenity-rich suburban buildings have contributed to rising rates as well. In the second quarter, Class A rates posted annual growth of 3.8 percent.

  • Rent growth for Class A product will likely continue to moderate as the market works through new deliveries, which have caused vacancy to creep upwards to 11.5 percent.

  • As landlords continue to aggressively compete for tenancy, concessions have steadily risen as well. Through 2017, new Class A leasing has averaged $46.94 per square foot in TI allowances for a 10-year term, which is up 5.0 percent from 2016.

Source: JLL Research, Bureau of Labor and Statistics​

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