The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 90.7 million square feet of rentable space in 892 office buildings of 25,000 square feet and greater. The market recorded a decrease in net absorption in the first quarter of 2022 with -268,818 square feet absorbed, down from the -105,554 square feet absorbed in the previous quarter. While net absorption was negative, there was one significant move-in during the first quarter 2022 – Inotiv occupied their 47,394-square-foot space at 9601 Medical Center Drive.
Direct vacancy increased to 13.6% in the first quarter 2022, up from 13.4% in the fourth quarter 2021, and total vacancy increased to 14.9%, up from 14.5% in the fourth quarter 2021. There were three significant office building sales in Suburban Maryland during the first quarter 2022. 4405 East-West Highway in the Bethesda / Chevy Chase submarket sold in March 2022 for $21.5 M, and in the North Silver Spring submarket 12041 Bournefield Way and 2331 Broadbirch Drive sold for $11.1 M and $4.49 M, respectively. The largest lease signed this quarter was Tetracore, Inc. signing a 99,206-square-foot lease at 77 Upper Rock Circle, a 235,347-square-foot, Class A office building in the North Rockville submarket.