Suburban Maryland Office Figures Q1 2025

Despite building momentum at the end of 2024, the Suburban Maryland office market posted 157,000 sq. ft. of negative absorption to start 2025. In turn, vacancy increased by 20 basis points (bps) from the prior quarter to 21.2%.

Due to efforts to consolidate the office footprint of several federal agencies, termination notices have been sent for three large General Services Administration (GSA) leases during the first quarter: 6505 Belcrest Road, 7519 Standish Place and 8455 Colesville Road. Other cost cutting measures by the federal government led several government contractors to shed office space throughout Suburban Maryland, including DLH and Creative Associates, which together added nearly 90,000 sq. ft. of vacant office space to the sublease market during the quarter.

Thanks to strong leasing figures, however, these contractions were kept at bay. Tenants leased more than 604,000 sq. ft. during the first quarter, marking one of the best first quarters for leasing since the start of the pandemic.