The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 91.1 million square feet of rentable space in 892 office buildings of 25,000 square feet and greater. The market recorded an increase in net absorption in the second quarter with 77,828 square feet absorbed, up from the -268,818 square feet absorbed in the previous quarter. A contributing tenant was MOM’s Organic Market occupying their 20,761-square-foot space at 6120 Executive Boulevard.
Direct vacancy decreased to 13.5% in the second quarter, down from 13.6% in the first quarter, and total vacancy decreased to 14.8%, down from 14.9% in the first quarter. The three largest office building sales in Suburban Maryland during the second quarter were Key West Life Science Center in the North Rockville submarket sold in June 2022 for $148 M, 7200 Wisconsin Avenue in the Bethesda / Chevy Chase submarket sold in April 2022 for $120 M, and Rockville Corporate Center in the North Rockville submarket sold in April 2022 for $66 M. The largest lease signed this quarter was National Institutes of Health signing a 355,950-square-foot lease at 6701 and 6707 Democracy Boulevard. The year-over-year unemployment rate in Suburban Maryland decreased to 3.3% in May 2022, down from 5.5% in May 2021.