There is a moderate level of demand for Class A office space inBaltimore now, he tells GlobeSt.com, which has traditionally beenlimited to perhaps six or so buildings, most of which are locatedon Pratt St. Demand is increasing, albeit slowly, for variousreasons: vacancies in the Baltimore office market in general aredecreasing—according to Delta Associates they are expected todecline to 10.9% from 11.7% over the next two years.
Also, there is little other Class A product in the pipeline,Wells adds. "Demand for Class A is primarily coming from tenants inother buildings that are taking the opportunity to cycle out ofolder buildings and upgrade to Class A." From his vantage point,most of this growth has been organic—that is, Baltimore firmsexpanding operations—as opposed to out of town tenants setting upshop in the city.
Activity in the Washington, DC, market, though, is having someimpact on Baltimore's real estate. More government contractors aremoving in; also Maryland is one of the submarkets expected tobenefit from the Base Realignment and Closure (BRAC)initiative.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
