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Rolling 12-month office absorption at a fraction of long-term average

  • ​Baltimore’s rolling 12-month office net absorption has fallen below the long-term average of roughly 900,000 s.f. for the past 11 quarters. The lack of demand has contributed to steadily rising vacancy across building classes and geography in the metro area.
  • The last significant run of above-average occupancy growth ran from 2011 through late 2012, and coincided with a period of rapid growth in the Profession & Business Services (PBS) sector of the economy. During that time, PBS employment grew by 5-8% year-over-year, a rate that Baltimore has not seen since.
  • While employment trends have improved in the short-term, with PBS posting 3.3% annual gains most recently, the labor market will have to continue to accelerate in the coming months to drive office absorption closer to the long-term average.
  • Market dynamics will likely continue to be led by changes in supply, rather than net new demand. Well over 
  • 2 m.s.f. has exited the metro market over recent years, with the shrinking Class B inventory helping keep market dynamics stable.​​

Source: JLL Research

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