While large swaths of Baltimore's office markets struggle with vacancy, McHenry Row in the city's Locust Point neighborhood has reached fully occupancy after a string of new deals.
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Developer Mark Sapperstein told the Baltimore Business Journal that tenants have taken all 400K SF of office space at the mixed-use complex. The newspaper reports that McHenry Row reached the 100% leasing mark after GWWO Architects, RCM&D Insurance Co., structural engineering firm GLPA and Subaru of America signed leases between 2,400 SF and 6,700 SF.
McHenry Row's leasing success contrasts with the experience of office owners elsewhere in the city. Baltimore's office market suffered back-to-back quarters of record high vacancies to start the year, according to research by CBRE.
Those researchers found between the start of April and the end of June, Baltimore's office market recorded 168K SF of negative net absorption. That pushed office vacancy for that period to 18.6%. Baltimore previously recorded a high of 18.2% vacancy during the first three months of 2023.
However, the fact McHenry Row provides relatively new Class-A office space — it delivered in phases starting in 2012 — a location near Interstate 95, free parking and walkable amenities puts the property at a competitive advantage in securing leases.
Baltimore-area brokers told Bisnow late last year their clients didn't necessarily want to lease suburban office space. However, they said assets in the city featuring suburban-like amenities — particularly abundant free parking — outperformed offices in Baltimore's denser urban areas.
Brokers pointed to projects like the Village of Cross Keys and 28 Walker's Collective development in Canton as prime examples of where city office spaces remained in high demand. Both projects feature ample free parking, access to nearby highways and walkable amenities like retail and restaurants.
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