The U.S. has experienced continued robust job growth, averaging 234,000 net new nonfarm jobs per month with the national unemployment rate declining to 5.0%. State-wide unemployment for overall Maryland posted a preliminary rate of 4.7% at the end of the first quarter of 2016, with Montgomery and Prince George’s Counties registering unemployment rates of 3.7% and 4.9%, respectively – well below the national rate. Nonfarm employment gains have been mainly in non-office sectors with Leisure and Hospitality, Educational and Health Services, and Retail sectors adding 470, 570, and 1,640 jobs, respectively.
The Suburban Maryland commercial real estate market continued to show signs of improvements after tepid activity throughout 2014 and 2015. Net absorption posted positive activity with 141,012 square feet (sf) occupied within 1Q 2016. Much of the activity was in the I-270 Rockville Corridor with significant move ins such as Shady Grove Fertility and The SK&A Group. Overall vacancy rates contracted 0.5 percentage points (pp) from last year, ending the quarter at 20.8%.
Source : Cushman & Wakefield