Apartment building sales across the Baltimore Metro region continue to set a hot pace as vacancy rates remain near post-recession lows. The multifamily sector remains strong as apartments attract people who seek the flexibility of renting. Those renters include a range of age groups, including young professionals, students and retiring baby boomers who are leaving their single-family homes. The demand for Baltimore apartment buildings is the result of local and out-of-town investors looking to capitalize on the region's thin vacancy rate with excellent return on investment.
Office to Multifamily Conversions Transforming Downtown
Baltimore’s central business district continues to surge in multifamily conversions of older office properties. Over a million square feet of functionally obsolete existing office inventory has been removed from the market to be renovated into multifamily apartment projects.
The Central Baltimore City apartment submarket, which includes the CBD, Mount Vernon, Fells Point, and other neighborhoods surrounding the downtown area, is experiencing a development resurgence. This has completely transformed the Inner Harbor and downtown area. Since 1997, Baltimore has experienced significant population growth. Projections estimate the city’s continued growth will allow for absorption of an additional 7,200 apartment units over the next five years. Demand has remained high, driving positive effective rent growth and average occupancies above 92%. Effective rents within Baltimore’s CBD have grown 6.2% since last year.
Notable CBD Multifamily Conversions:
103 S Gay St. - Former 147,000 sf US General Services Administration office building soon converting to 130 -140 units.
1 Light St. – Construction has started on a 10-story parking structure with 280,000 sf office space and 340 multi-family units.
7 North Calvert, Munsey Building - This 178,000 sf office building was modified into 146 units.
Mechanic Theater – Was recently demolished. Construction is underway for a 476 multi-family units with 110,000 sf of ground floor retail.
10 Light St. - A 435,000 sf office building converted to +/-445 apartment units. Will also feature a 40,000 sfUnder Armour performance center.
10-12 North Calvert St. – Former office building converted to 188 apartment units.
301 North Charles St. - This 93,000 sf office building has been converted to a 92 unit apartments.
225 North Calvert St. - A former Bank of America building. This 390,000 sf office building is being converted into 338 units