Following a strong first quarter to start the year, the Suburban Maryland office market posted its third consecutive quarter of negative net absorption in Q4 2020 at 101,247 sq. ft., ending the year with 16,627 sq. ft. of total occupancy gains. This compares to 2019 when the market recorded more than 600,000 sq. ft. of net demand growth.
Government leasing rebounded notably after a quiet 2019 when less than 100,000 sq. ft. of transactions took place. In 2020, the GSA contributed 900,000 sq. ft. of leasing activity, accounting for nearly one third of all leased space.
The life sciences sector remained a bright spot this year for Suburban Maryland, providing more than 500,000 sq. ft. of leasing activity.