Suburban Maryland Market Report Q4 2019

The second half of 2019 marked a significant shift in Suburban Maryland’s office market fundamentals. After losing most of Discovery Communications in early 2019, significant late-year occupancy gains triggered modest market tightening throughout the region. Fourth-quarter net absorption was recorded at 347,246 SF, bringing the year-end total to 627,700 SF; the largest annual increase since 2016. Similarly, strong occupancy resulted in Suburban Maryland’s lowest quarterly vacancy rate in a decade (15.2%). Although occupancy expansion has been positive over the last six months, leasing activity has been weak in 2019, which could foreshadow market softening in the coming months.