The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 88.6 million square feet of rentable space in 885 office buildings of 25,000 square feet and greater.
The market recorded an increase in net absorption in the second quarter of 2019 with 132,717 square feet absorbed, up from the -246,062 square feet absorbed in the previous quarter.
Direct vacancy slightly decreased to 13.2% in the second quarter 2019, down from 13.3% and total vacancy decreased to 13.8%, down from 13.9%.
There were three sales transactions in Suburban Maryland this quarter, totaling $68,950,000 The largest sale of the quarter was 7735 Old Georgetown Road in the Bethesda submarket. 7735 Old Georgetown Road sold to Washington Capital for $45,400,000. The price-per-square foot was $360. The Stuart Bainum Family Foundation was the seller.
The largest lease signed this quarter was Children’s National Health System signing a 110,400-square foot lease at 1 Discovery Place in the Silver Spring submarket. The year-over-year unemployment rate in Suburban Maryland decreased to 3.0% in May 2019, down from 3.2% in May 2018.
From May 2018 to May 2019 employment in Suburban Maryland had a net increase of 1,100 new jobs, representing marginal growth. Sectors with the greatest amount of job growth were Professional and Business Services with 3,900 jobs and Manufacturing with 500 jobs, The Government decreased by 700 jobs year-over-year.