MacKenzie Commercial Real Estate Services is pleased to present their 3rd Quarter 2016 Office Market Report for the Baltimore Metropolitan Area. This report includes the following analysis presented by Anirban Basu of Sage Policy Group.
Baltimore regional labor market data indicated that the regional economy has shifted into a higher gear. Over the past year, this region of 2.8 million people, one of the nation’s most educated and affluent, has added more than 31,000 net new jobs. Though home to slightly less than one half of Maryland’s population, the region has added more than 60 percent of its positions. In percentage terms, the pace of regional job growth has been faster than the national average. Regional unemployment has dipped to 4.8%, below the official U.S. rate.
There is also a growing sense of vitality in the region. The redevelopment of downtown Columbia, significant commercial projects in Towson, White Marsh, Owings Mills, and Hanover, large-scale apartment development in and around downtown Baltimore, a strengthening housing market in Carroll and Baltimore counties and in other parts of the region speak to a regional economy that is now on the move.
Despite all of this, the regional office market continues to languish, with net absorption remaining sluggish. Were it not for a dearth of new office construction, the situation would be considerably worse from the perspectives of vacancy and asking rent. Even with soft absorption, the regional office vacancy rate managed to dip to 13.3% during the 3rd Quarter 2016 according to data from MacKenzie Commercial Real Estate Services. Asking rent climbed to $23.34/sf during the 3rd Quarter, up 2.5% from $22.79/sf one year earlier.
MacKenzie Ventures, LLC (MacKenzie) possesses the multi-disciplined team necessary to excel in Maryland’s corporate real estate community.Comprising seven firms, MacKenzie provides clients a competitive, full service platform of offerings in leasing, sales, investment sales, tenant and landlord advisory services, corporate and business consulting, commercial and residential development, general construction, property and asset management, debt and equity capital placement, and market research. With more than 150 employees and offices in Annapolis, Baltimore, Bel Air, Columbia, and Lutherville, Maryland, MacKenzie is one of the largest full service commercial real estate firms in the Mid-Atlantic. Please visit www.mackenziecommercial.com for more information.
