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 a decrease in net absorption in the fourth quarter of 2019 with 61,333 square feet absorbed, down from the 183,811 square feet absorbed in the previous quarter.
Direct vacancy stayed flat at 13.1% in the fourth quarter 2019, and total vacancy decreased slightly to 13.8%, down from 13.9% in the third quarter 2019.
There were three sales transactions in Suburban Maryland this quarter, totaling $529,156,575. The largest sale of the quarter was 5600 Fishers Lane in the Rockville submarket. 5600 Fishers Lane sold to a joint venture between Boyd Watterson and Union Baincaire Privee for $436,000,000. The price-per-square-foot was $466. The JBG Companies was the seller.
The largest lease signed this quarter was Social & Scientific Systems, Inc. signing a 57,934-square-foot lease at 8757 Georgia Avenue in the Silver Spring submarket. The year-over-year unemployment rate in Suburban Maryland decreased to 2.7% in November 2019, down from 3.0% in November 2018.
From November 2018 to November 2019 employment in Suburban Maryland had a net increase of 20,170 new jobs, representing 0.2% job growth. Sectors with the greatest amount of job growth were Professional and Business Services with 2,300 jobs, Leisure and Hospitality with 900 jobs, and Manufacturing with 300 new jobs. The Government increased by 900 jobs year-over-year.