Despite subsiding COVID-19 case numbers and progress in vaccination rates, the Baltimore metro office market continued to reflect the near-term effects from the pandemic, recording 367,000 sq. ft. of negative absorption in Q2 2021, which brought year-to-date occupancy loss to 758,000 sq. ft. As a result, vacancy rose 50 basis points (bps) over the prior quarter to 16.6%. On a positive note, leasing activity rebounded with a 51% increase over the quarter to 905,000 sq. ft.—the highest quarterly level since Q4 2019. While this remains 21% below the pre-pandemic average, we expect further improvements in the coming quarters.