Suburban Maryland Q3 2019
The Suburban Maryland office market rebounded in the third quarter (Q3), recording 449,132 SF of positive absorption. Third-quarter gains nearly offset occupancy losses recorded in Q2 from Discovery’s relocation out of Silver Spring. Bethesda drove the most significant occupancy gain in Q3 (238,256 SF), which was spurred by the delivery of 4747 Bethesda Avenue.
Overall fundamentals remain steady in Suburban Maryland, however, some conflicting trends are developing. Total leasing volume has been well below-average through 2019 and vacancy has been ticking upward. Additionally, overall employment and occupancy growth have been slowing in recent years. Conversely, availability rates have stabilized over the last year. Though still high at 20.2%, flat availability indicates that demand is falling in-line with supply.
Overall fundamentals remain steady in Suburban Maryland, however, some conflicting trends are developing. Total leasing volume has been well below-average through 2019 and vacancy has been ticking upward. Additionally, overall employment and occupancy growth have been slowing in recent years. Conversely, availability rates have stabilized over the last year. Though still high at 20.2%, flat availability indicates that demand is falling in-line with supply.