2019-07-04_DTZ戴德梁行_Office_Q1_2019_Baltimore_4页_656kb

报告摘要

Baltimore Office Market Q1 2019 Summary

Core Content

The Baltimore office market experienced a mixed but generally positive performance in the first quarter of 2019, with continued growth in net absorption, rental rates, and strong demand for quality space. The market also saw a slight decrease in vacancy rates, although certain submarkets remained under pressure.

Economic Indicators

Baltimore Employment: Increased slightly to 1.43 million (up 20,000 from Q1 2018).
Baltimore Unemployment: Dropped by 10 basis points to 4.1%, slightly above the national rate of 3.8%.
Government Jobs: Declined by an estimated 1,800 jobs YOY, reflecting a less favorable trend in this sector.

Market Overview

Overall Vacancy Rate: Decreased by 10 bps to 13.1%.
Total Net Absorption (Q1 2019): 410,040 sf, a significant turnaround from the -48,000 sf recorded in Q1 2018.
Class A Absorption: Contributed 62.4% of total absorption, with 294,391 sf absorbed, making it the top-performing class.
Rental Rates: Increased by 2.9% YOY to $23.82 psf, driven by demand for quality space.
Construction Activity: Under construction inventory decreased to 851,000 sf from 1.5 million sf in Q1 2018, indicating a leveling off of new supply.

Submarket Performance

Submarket	Inventory (sf)	Sublet Vacant (sf)	Direct Vacant (sf)	Vacancy Rate	Net Absorption (sf)	YTD Net Absorption (sf)	Under Construction (sf)	Overall Avg Asking Rent (psf)	Class A Avg Asking Rent (psf)
BWI Airport	11,478,936	52,048	1,445,473	13.0%	208,014	208,014	0	$27.66	$30.62
Baltimore City	21,492,284	160,642	3,472,536	16.9%	39,806	39,806	330,000	$22.44	$24.88
Greater Annapolis	3,876,952	18,087	263,915	7.3%	144,577	144,577	100,000	$27.24	$30.80
Harford County	2,075,926	15,444	573,232	28.4%	-2,389	-2,389	0	$29.34	$29.60
Howard County	16,769,232	116,717	1,453,078	9.4%	79,282	79,282	320,964	$23.75	$30.41
Suburban North	13,168,698	79,728	1,261,749	10.2%	-29,569	-29,569	100,000	$20.46	$22.09
Suburban West	8,076,818	34,340	1,168,194	14.9%	8,120	8,120	0	$20.54	$23.39
Baltimore Totals	76,938,846	477,006	9,638,177	13.1%	410,040	410,040	850,964	$23.82	$27.17

Key Lease Transactions Q1 2019

3200 Lord Baltimore St: 47,802 sf leased by an undisclosed tenant in the Woodlawn submarket.
10 Irondale St: 36,040 sf leased by an undisclosed tenant in the Baltimore County East submarket.
5355 Nottingham Dr: 27,459 sf renewed by First Home Mortgage in the Baltimore County East submarket.
7120 Samuel Morse Dr: 21,371 sf leased by The Cleaning Authority in the Columbia South submarket.

Key Sales Transactions Q1 2019

8970-8990 Route 108: 84,514 sf sold for $9,950,000 ($117 psf) by Feldman Bergin Development to Advantage Properties, Inc. in the Columbia North submarket.
9200 Old Annapolis Rd: 24,000 sf sold for $3,800,000 ($158 psf) by The Sanford Companies, Inc. to Shaw Real Estate, LLC in the Columbia North submarket.

Outlook

Class A Rents: Expected to continue outperforming Class B rents as tenants prioritize quality space.
Class B Rents: Likely to remain stable as landlords adjust to the shift in demand.
Vacancy Rates: May stabilize or decrease as construction slows, reducing supply.
Market Softening: Possible softening in the landlord market in the first half of 2019.
Supply Trends: 11.6 million sf has been delivered since 2010, with an additional 800,000 sf expected to be completed by 2020.

Conclusion

The Baltimore office market showed resilience in Q1 2019, with strong absorption and rental growth, although some submarkets like Harford County faced challenges. The demand for Class A space and its higher rental rates reflect a broader trend of tenants seeking quality over cost. With construction activity slowing and supply adjusting, the market is expected to remain stable, though some caution is advised for the first half of the year.

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