Baltimore Commercial Office Space for Rent

Q3 2026

Q3 2026 Baltimore Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Baltimore's office market softened in the first half of 2026, with vacancy at 17.8% and no new office construction underway. Industrial returned to positive absorption in Q2, and apartment occupancy remains above the national average. Tenant demand on TenantBase shifted toward office in Q3: office space accounted for 48.1% of all Baltimore tenant searches, about four times its 11.7% share in Q2, and tied retail for the top spot.

Sector Snapshot

  • Office: Softening. Vacancy was 17.8% in Q2, with 299,254 SF of negative absorption year to date.
  • Industrial: Recovering. Q2 absorption was positive 229,506 SF, with vacancy at 9.3%.
  • Retail: Soft. Vacancy reached its highest June level since at least 2007, with under 200,000 SF under construction.
  • Multifamily: Stable. Stabilized occupancy was 94.8%, above the national average.

Baltimore Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Baltimore metro and Central Maryland are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Office: 48.1%
  • Retail/Storefront: 48.1%
  • Warehouse/Industrial: 3.7%

Three-Quarter Trend

  • Office: 13.5% in Q1, 11.7% in Q2, 48.1% in Q3
  • Retail/Storefront: 58.5% in Q1, 62.0% in Q2, 48.1% in Q3
  • Warehouse/Industrial: 28.7% in Q1, 26.3% in Q2, 3.7% in Q3

Key Takeaways

  • Office demand roughly quadrupled, from 11.7% to 48.1% of Baltimore searches, drawing even with retail.
  • Short-term office demand stays strong. 61.5% of Q3 office searches sought terms under one year, the third straight quarter above 50%.
  • Retail tenants favor 3 to 5 year leases. 46.2% of Q3 retail searches sought 3 to 5 year terms, up from 30.8% in Q2.
  • Larger office users are planning long term. Office searches for 2 to 3 year and 5+ year terms averaged 6,250 SF or more.

Office Market

Key Metrics (Q2 2026)

  • Vacancy: 17.8%, up 20 basis points year to date (Cushman & Wakefield)
  • Net absorption: negative 168,583 SF in Q2 and negative 299,254 SF year to date (Cushman & Wakefield)
  • Average asking rent: $25.99/SF full service, with Class A at $28.60/SF (Cushman & Wakefield)
  • Leasing: 1,127,650 SF year to date, 20.8% below the same period in 2025 (Cushman & Wakefield)
  • Tightest submarkets: Greater Annapolis at 11.9%, BWI Airport at 12.6%, and Howard County at 13.9% (Cushman & Wakefield)
  • Highest vacancy: Harford County at 27.6% and Baltimore City at 23.5% (Cushman & Wakefield)
  • Notable leases: The Bozzuto Group, 51,824 SF at 8160 Maple Lawn Blvd, and Downtown Partnership of Baltimore, 21,909 SF at 7 St. Paul St (Cushman & Wakefield)

TenantBase Office Activity

Demand share: 48.1% of Baltimore tenant searches, up from 11.7% in Q2 and 13.5% in Q1.

Lease term preferences:

  • Less than one year: 61.5%
  • 2 to 3 years: 15.4%
  • 5+ years: 15.4%
  • 3 to 5 years: 7.7%

Space requirements by term:

  • Less than one year: 500 to 1,000 SF
  • 2 to 3 years: 10,000 to 20,000 SF
  • 3 to 5 years: 500 to 1,000 SF
  • 5+ years: 6,250 to 12,500 SF

TenantBase data vs. the market: Baltimore office demand on TenantBase splits between small, short-term users under 1,000 SF and larger tenants seeking 6,250 to 20,000 SF on multi-year terms. With vacancy at 23.5% in Baltimore City and no new office construction, larger tenants have real negotiating leverage downtown. Tenants targeting Annapolis, BWI, or Howard County will find tighter conditions.

Industrial & Warehouse Market

Key Metrics (Q2 2026)

  • Vacancy: 9.3% (Cushman & Wakefield)
  • Net absorption: positive 229,506 SF in Q2, after negative absorption in Q1 (Cushman & Wakefield)
  • Average asking rent: $10.97/SF net (Cushman & Wakefield)
  • Under construction: 2,541,049 SF, mostly in the BW Corridor and I-95 North (Cushman & Wakefield)
  • Tightest corridor: the Beltway at 2.8% vacancy (Cushman & Wakefield)
  • Notable leases: Sudano's Produce, 103,182 SF at 6680 Business Pkwy, and Poole & Kent, 101,435 SF at 4653 Hollins Ferry Rd (Cushman & Wakefield)

TenantBase Industrial Activity

Demand share: 3.7% of Baltimore tenant searches, down from 26.3% in Q2 and 28.7% in Q1.

Space requirements: Q3 industrial searches sought 5+ year terms at 2,500 to 10,000 SF.

TenantBase data vs. the market: Small industrial users will find the most availability in the BW Corridor at 10.6% vacancy, while the Beltway, at 2.8%, offers few options.

Retail Market

Key Metrics (2026)

  • Vacancy: single-tenant and multi-tenant vacancy both reached their highest June levels since at least 2007 (Marcus & Millichap)
  • Demand drivers: big-box move-outs, including Macy's and Saks OFF 5TH, contributed to softer demand (Marcus & Millichap)
  • Under construction: less than 200,000 SF (Marcus & Millichap)

TenantBase Retail Activity

Demand share: 48.1% of Baltimore tenant searches, down from 62.0% in Q2.

Lease term preferences:

  • 3 to 5 years: 46.2%
  • Less than one year: 23.1%
  • 2 to 3 years: 15.4%
  • 5+ years: 15.4%

Space requirements by term:

  • Less than one year: 500 to 1,000 SF
  • 3 to 5 years: 1,000 to 2,500 SF

TenantBase data vs. the market: Baltimore retail tenants on TenantBase mostly need small storefronts under 2,500 SF. With vacancy at its highest June level since at least 2007, these tenants have more options and room to negotiate.

Multifamily Market

Baltimore stabilized apartment occupancy was 94.8% as of December 2025, 30 basis points above the national average, according to Yardi Matrix. Average asking rent was $1,744, up 0.4% year over year. More than 4,600 units were under construction as of January 2026, after 3,216 units delivered in 2025.

Q4 2026 Outlook

  • Office: Expect tenant-favorable conditions in Baltimore City, with no new supply and small-suite demand leading activity.
  • Industrial: Expect gradual improvement as absorption turns positive, with new supply concentrated in the BW Corridor.
  • Retail: Expect vacancy to level off as the limited construction pipeline keeps new supply low.
  • Multifamily: Expect occupancy to hold near 95% as the pipeline delivers.

Frequently Asked Questions

What type of commercial space are Baltimore tenants searching for in 2026?

In Q3 2026, office and retail/storefront space each made up 48.1% of Baltimore tenant searches on TenantBase. Office share rose from 11.7% in Q2.

What lease terms do Baltimore office tenants want?

61.5% of Baltimore office tenants on TenantBase sought terms under one year in Q3 2026.

What is the office vacancy rate in Baltimore?

Baltimore office vacancy was 17.8% in Q2 2026, with Baltimore City at 23.5%, according to Cushman & Wakefield.

What is the industrial vacancy rate in Baltimore?

Baltimore industrial vacancy was 9.3% in Q2 2026, with 229,506 SF of positive net absorption, according to Cushman & Wakefield.

How much does office space cost in Baltimore?

Baltimore office asking rents averaged $25.99/SF full service in Q2 2026, with Class A at $28.60/SF, according to Cushman & Wakefield.

How can I find commercial space in Baltimore at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Baltimore metro at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Baltimore, July 1 to September 30, 2026
  2. TenantBase, Baltimore Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Baltimore Commercial Real Estate Market Report, Q1 2026
  4. Cushman & Wakefield, Baltimore Office MarketBeat, Q2 2026
  5. Cushman & Wakefield, Baltimore Industrial MarketBeat, Q2 2026
  6. Marcus & Millichap, Baltimore Retail Market Report, 3Q 2026
  7. Multi-Housing News, Baltimore Multifamily Report (Yardi Matrix), March 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.