SILVER SPRING, MD–Effective rents for Class A rental apartments here rose 3.7% in the third quarter from year-end 2011, according to Delta Associates. The average rental rate in Silver Spring is now $2,051 a month.
The Washington D.C.-based firm states the vacancy rate for the third quarter for Class A units fell to 12%, down from 18.9% in the second quarter. About 1,645 rental units are under construction at the moment, which should cause the vacancy rate to spike once these properties come on-line. At the moment, there are no condominium units under construction in the area.
The 6.9-million-sf office market took a step back in the third quarter, posting a negative 76,000 sf of absorption. The vacancy rate, including subleased space, rose from 8.9% to 10.9% at the end of the third quarter. See story in the Washington Post.