KEY TAKEAWAY

The Baltimore market has experienced a notable recovery since the beginning of the
recession in 2008. In fact, since 2009 the Baltimore Metropolitan office-using
employment numbers are up 13.6%. Despite seeing a dip over the last year,
Baltimores overall average asking rents have increased by 7.5% as of Q3 2014 from
Q3 2009. However, the 9.3 million square feet (msf) vacant today only represents a
500,000 sf decline in vacancy compared to Q3 2009.

WANT TO SEE THE DATA? READ ON

OCCUPANCY TRENDS POST-RECESSION

Occupancy trends are changing from the pre-recession levels. Even with growth in
office-using jobs from 308,250 from Q3 09 to 350,130 in Q3 14, occupancy levels are
up only slightly - 2 bps, over the same period. Those numbers reflect changes in
office environments and working styles that will continue to impact occupancy for
the foreseeable future.

13.6

percent reflects the uptick in

office-using employment since Q3
09

PREVALENT INDUSTRIES REPRESENT SHIFTING DEMAND

With the introduction of new workplace strategies to accommodate industry changes

and new sectors dominating Baltimore leasing activity, tenant requirements have
reduced from 250 sf per employee to 200 sf, and even less in some sectors. Year-todate, the information technology sector, professional business service sector, and the
manufacturing sector (due to Pandoras deal) have dominated new leasing activity in
2014.

200

sf per employee is the average

tenant requirement

MARKET TIGHTENS FOR LARGE OFFICE USERS

In 2014, the Baltimore office market has experienced a reduction in average deal size,
but there are still some large office users circling the market, with at least 10
currently active. However, Pandora and OneMain Financial have snagged one of the
few contiguous blocks of space over 25,000 sf. Out of the 7 vacant blocks only 2 are
available in the CBD totaling 70,700 sf.

OCCUPANCY VS. OFFICE-USING EMPLOYMENT

OFFICE-USING EMPLOYMENT VS. OVERALL ASKING RENT

87.50%

360.00

360.00

87.00%

350.00

350.00

86.50%

340.00

340.00

86.00%

330.00

330.00

85.50%

320.00

320.00

85.00%

310.00

310.00

84.50%

300.00

300.00

84.00%

290.00

290.00

280.00

280.00

83.50%
Q3 07 Q3 08 Q3 09 Q3 10 Q3 11 Q3 12 Q3 13 Q3 14
Occupancy

Baltimore Office-Using Employment

Options of contiguous space over

25,000 sf in the CBD

$25.00
$24.00
$23.00
$22.00
$21.00
$20.00
$19.00
Q3 07 Q3 08 Q3 09 Q3 10 Q3 11 Q3 12 Q3 13 Q3 14
Baltimore Office-Using Employment

Overall Avg. Asking Rent

BALTIMORE OFFICE MARKET TOTAL MARKET

Sources: Cushman & Wakefield Research, CoStar Group.

FOR MORE INFORMATION, PLEASE CONTACT:

LAVETTE LAGON
Research Analyst
(410) 685 9243
lavette.lagon@cushwake.com
www.cushmanwakefield.com
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