Gross leasing activity totaled 543,300 sq. ft. in Q3 2020, down approximately 50% year-over-year. Nonetheless, significant transactions signed within the last three years commenced, resulting in 148,153 sq. ft. of positive net absorption.
Sublease availability in the Baltimore region ended the quarter at 1.04 MSF sq. ft., up 16% since March 2020. While notable, the increase remains much more measured compared to most other major U.S. office markets which have seen 30-50% increases in their sublease availability during this time period.
Office investment sales activity remains on pause, with no sales to report in Q3 2020. Institutional-quality properties were pulled from the market during early stages of the pandemic, resulting in limited sales volume. Activity is expected to pick up as stabilized assets get introduced to the market.