The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 88.9 million square feet of rentable space in 886 office buildings of 25,000 square feet and greater.
The market recorded an increase in net absorption in the third quarter of 2019 with 183,811 square feet absorbed, up from the 132,717 square feet absorbed in the previous quarter.
Direct vacancy slightly decreased to 13.1% in the third quarter 2019, down from 13.2% and total vacancy increased to 13.9%, up from 13.8%.
There were five sales transactions in Suburban Maryland this quarter, totaling $248,550,000 The largest sale of the quarter was 7500 Old Georgetown Road in the Bethesda submarket. 7500 Old Georgetown Road sold to Stonebridge Associates for $133,750,000. The price-per-square-foot was $395. Clark Enterprises, Inc. was the seller.
The largest lease signed this quarter was Ana G. Mendez University signing a 45,000-square-foot lease at 1 Discovery Place in the Silver Spring submarket. The year-over-year unemployment rate in Suburban Maryland decreased to 3.1% in August 2019, down from 3.5% in August 2018.
From August 2018 to August 2019 employment in Suburban Maryland had a net increase of 15,701 new jobs, representing 0.3% job growth. Sectors with the greatest amount of job growth were Educational and Health Services with 1,000 new jobs, Professional and Business Services with 900 jobs, and Manufacturing with 200 new jobs. The Government decreased by 700 jobs year-over-year.