The first quarter of 2023 saw a sharp drop in leasing activity in Baltimore’s Metropolitan region, according to a report published by Commercial Real Estate Services. Rising interest rates and companies’ uncertain occupancy needs negatively impacted the region’s leasing activity, with Baltimore City’s Class A buildings having an availability rate of 24.8%, compared to 15.8% five years ago. Retail leasing activity also declined significantly, with only 130 retail transactions occurring last quarter compared to 188 during the same period last year.
However, MacKenzie Commercial Real Estate Services reported that there was still opportunity for investors in the market due to a 17% surge in non-residential construction between May 2022 and February 2023 – marking the highest level on record – allowing them buy up commercial real estate at discounted rates despite negative news from other sectors within CRE .
