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Montgomery Park
A large Office Space leasing sign hangs from the side of the Montgomery Park Building on Washington Blvd. The Baltimore city skyline is partially seen in the background. (The Daily Record/Maximilian Franz)

Baltimore office market doldrums remain

The market for office space in the Baltimore metro-market isn’t taking off, but at least it’s not cratering.

During the first quarter of 2014 net absorption was negative, and the direct vacancy rate inched up to 11.3 percent from 11.2 percent in the final quarter of last year, according to a Delta Associates report released this week.

This is in line with what experts and analysts said they expected in early March.

But it’s not all doom and gloom.

Developers haven’t saturated the market with office buildings, which should help vacancy rates fall to 10.4 percent by March 2016.

Asking rents are also expected to increase between 2 and 3 percent this year.