The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 89.3 million square feet of rentable space in 896 office buildings of 25,000 square feet and greater.
The market recorded an increase in net absorption in the second quarter of 2020 with 35,852 square feet absorbed, up from the -156,873 square feet absorbed in the previous quarter.
Direct vacancy remained flat at 13.1% in the second quarter 2020, and total vacancy increased slightly to 14.0%.
There were no significant office building sales in Suburban Maryland during the second quarter 2020.
The largest lease signed this quarter was the FDA signing a 93,014-square-foot renewal at 12420 Parklawn Drive in the Rockville submarket. The year-over-year unemployment rate in Suburban Maryland increased to 9.0% in May 2020, up significantly from 2.9% in May 2019. Unemployment in Suburban Maryland remains well below the national unemployment rate of 11.1%.
From May 2019 to May 2020 employment in Suburban Maryland had a net decrease of 63,471 jobs. Sectors with the greatest amount of job loss were Leisure and Hospitality with 25,000 jobs lost, Education and Health Services with 11,300 jobs lost, Trade, Transportation and Utilities with 9,500 jobs lost, and Professional and Business Services with 8,300 jobs lost. Government jobs decreased by 600 jobs year-over-year.