Baltimore Pulse of The Market - June 2022

Pulse of the Market
Baltimore
June 2022
© 2022 Jones Lang LaSalle IP, Inc. All rights reserved.

By the numbers
4.2% 99.3% 137,000 50.3%

Current unemployment of jobs recovered Job postings Office occupancy
20 basis-point decrease from March 50 basis-point improvement from last month 9.2% increase over the prior month Possible plateau during summer months
119% 14.7% 66% $1B

Vehicle trips vs. 2019 Retail spend vs. 2021 Visitor foot traffic vs. 2019 2022 VC investment volume
Well above pre-Covid levels last five months YOY increase in all retail categories Inner Harbor visitor activity On pace for another record year
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Employment

Employment
Total employment compared to pre-pandemic levels
99.3%
Of jobs recovered
2%
0%
0.0%
-0.3%
Distance from employment recovery (%)

-1.0% -1.2%
-2%
-1.8%
-2.6%
-3.1% -3.0%
-4% -3.5%
• Employment recovery peaked in -4.7%
December 2021 before declining slightly -6%
-6.2%
-5.3%
due to the Omicron variant. -8% -7.3%

-6.6%
• The Fed’s decision to hike its benchmark -8.7%

-10%
policy rate in March and May of this year
have appeared to have little to no impact -12%
on employment recovery. -12.6%
-14%
Figure above represent the geographic area of the Baltimore - Columbia – Townson MSA.
Source: BLS, JLL Research

Employment 5% Total employment compared to pre-pandemic levels by
nearby markets
Highest 0%
Distance from employment recovery (%)

Rate of jobs recovered -5%
• Baltimore outpaces regional competitors,

Washington, DC, Pittsburg and -10%
Baltimore
Philadelphia, in employment recovery. Washington, DC

Pittsburg
• Baltimore is the only market among these
Philadelphia
competitive markets to realize near full -15%
employment recovery to pre-pandemic
levels before declining due to the
Omicron variant.
-20%

Unemployment
Unemployment rate
4.2%
Current unemployment rate
12%
10%
Covid-19
Pandemic
Great
Recession
Unemployment (%)
• Unemployment in Baltimore fell 20 basis- 8%
points in April to 4.2% and 160 basis-

points since this time last year but is still a 6%
Dot-com
9/11
bit shy of the pre-pandemic-low of 3.5%.
4%
2%
0%
Figure above are seasonally-adjusted and represent the geographic area of the Baltimore - Columbia – Townson MSA.

Unemployment
Unemployment across markets
Lowest
April 2020 Unemployment (%) April 2022 Unemployment (%)
-30 BPS -20 BPS -10 BPS -20 BPS -20 BPS -20 BPS
Change from prior month Change from prior month Change from prior month Change from prior month Change from prior month Change from prior month
Among major markets 18.2
16.7
16.4
16
14.7
• Baltimore has had one of the lowest
unemployment rates throughout the
pandemic among major markets.
10.2
• The region’s noncyclical economy,

anchored by healthcare institutions, is the
driving factor for a resilient labor market. 5 4.8 4.8 4.6
4.4 4.2
Los Angeles New York Chicago Pittsburg Philadelphia Baltimore

Job postings
Unique job postings
+9.2%
Beginning of the Current: May 2022
Pandemic 136,998 Postings
160,000
Pre-Covid Peak: March 2020 Pandemic Peak: June 2021
121,797 Postings 118,758 Postings
Baltimore MSA full-time unique job postings by month

140,000
Month-over-month increase
120,000
in job postings
100,000
• Unique job postings in May surpass pre-
pandemic levels for the first time. 80,000
• Labor demand remains strong despite 60,000

the Fed’s decision to hike its
benchmark policy rate by 50 basis 40,000
points, the first such hike in 22 years.
• It is too soon to tell how the recent rate 20,000
hike of an additional 75 basis points

will impact business decisions and the - Jan 2019…
Jun 2019…
Jul 2019…
Jan 2020…
Jun 2020…
Jul 2020…
Jan 2021…
Jun 2021…
Jan 2022…
Feb 2019…
Mar 2019…
Aug 2019…
Sep 2019…
Oct 2019…
Dec 2019…
Feb 2020…
Nov 2019…
Mar 2020…
Aug 2020…
Oct 2020…
Aug 2021…
Nov 2020…
Dec 2020…
Feb 2021…
Mar 2021…
Jul 2021…
Sep 2021…
Oct 2021…
Nov 2021…
Dec 2021…
Feb 2022…
Mar 2022…
May 2019…
May 2020…
Sep 2020…
May 2021…
May 2022…
Apr 2019…
Apr 2020…
Apr 2021…
Apr 2022…
demand for labor.
Job postings
Market share of remote job postings
6.5%
7.0%
Beginning of the pandemic Current: May 2022 6.5%
Baltimore full-time remote job postings (% of total jobs)

6.0%
Share of remote postings 5.0%
• Share of remote roles in Baltimore have 4.0%
increased every month for the past five

months reaching an all-time high of 6.5% 3.0%
in May.
• Remote roles have eclipsed 5% of the 2.0%
total postings every month since August

2020. 1.0%
• These figures suggest that remote work is

here to stay as a fraction of the total labor 0.0%
May 2019…
May 2020…
May 2021…
May 2022…
Jul 2019…
Jul 2020…
Jul 2021…
Jan 2019…
Jun 2019…
Jan 2020…
Jun 2020…
Jan 2021…
Jun 2021…
Jan 2022…
Mar 2019…
Aug 2019…
Sep 2019…
Oct 2019…
Aug 2020…
Nov 2019…
Dec 2019…
Mar 2020…
Sep 2020…
Oct 2020…
Nov 2020…
Dec 2020…
Mar 2021…
Aug 2021…
Sep 2021…
Oct 2021…
Nov 2021…
Dec 2021…
Mar 2022…
Feb 2019…
Feb 2020…
Feb 2021…
Feb 2022…
Apr 2019…
Apr 2020…
Apr 2021…
Apr 2022…
force, but over 90% of job postings are for
in-office or hybrid roles.
Source: EMSI, JLL Research

Job postings
Job postings by occupation
16%
Of all active job postings are
Healthcare Practitioners and Technical Support
Computer and Math
Management
Office and Administrative Support 12,235

15,423
18,595
20,794
for Healthcare Occupations Sales 12,235
Business and Financial Operations 9,039
Transportation and Material Moving

• Healthcare Practitioners and Technical
6,910
Support employees are the most in-

Food Preparation and Service 6,601
demand across the region, bolstering Arts, Design, Entertainment, Sports, and Media 5,530
the resiliency of Baltimore’s labor Healthcare Support 4,817
market. Installation, Maintenance, and Repair 4,209
Architecture and Engineering 3,844
• Current trends suggest that Computer Educational Instruction and Library 3,393
and Math occupations may be more Building and Grounds Cleaning and Maintenance 2,539
vulnerable than others to rate hikes. Protective Service 2,057
Life, Physical, and Social Science 1,639
0 5,000 10,000 15,000 20,000 25,000

May 2022 count of unique job postings
Source: EMSI, JLL Research Figure above represent the geographic area of the Baltimore - Columbia – Townson MSA.

Return-to-
office
metrics

Office occupancy
Office occupancy
50.3%
100.00%
90.00%
80.00%
Current office occupancy rate 70.00% 2022 peak: 55.4%
2021 peak: 45.5%

60.00%
• Office occupancy in Baltimore 50.00%
continues to trend upwards reaching a 40.00% Early pandemic low: 16.8% Current: 50.3%
new high of 55.4% in May 2022
30.00%
compared to pre-pandemic levels.
20.00%
• The recent dip in office occupancy in
the first half of June could be attributed 10.00%
to the uptick in COVID-19 cases but is 0.00%

most likely due to the increased
10/8/2020
11/8/2020
12/8/2020
10/8/2021
11/8/2021
12/8/2021
4/8/2020
5/8/2020
6/8/2020
8/8/2020
9/8/2020
1/8/2021
2/8/2021
3/8/2021
4/8/2021
5/8/2021
6/8/2021
7/8/2021
8/8/2021
9/8/2021
1/8/2022
2/8/2022
3/8/2022
4/8/2022
5/8/2022
6/8/2022
3/8/2020
7/8/2020
flexibility afforded to employees as they
juggle end-of-school-year activities, By week
summer vacations and similar.

Office occupancy
Office occupancy by major market
4th 2021 Peak Current Value - June 2022
Weekly badge swipe count as a percentage of pre-Covid

70%
Baltimore vs. major markets

61.3%
59.3%
60% 56.2%
54.9%
50.9%50.9% 50.3%
50%
45.5%
• Baltimore’s office occupancy trends 41.3% 41.6% 41.4% 41.2%
activity (%)
38.1% 38.2%
closer to Texan markets than it does its 40%
35.9%
36.3%
35.2% 35.3% 34.0% 33.8%
Mid-Atlantic neighbors, Washington, DC, 30% 28.8% 29.4%
New York and Philadelphia. This can be

20%
attributed to the car-centric workforce in
Texas and Baltimore, whereas DC, New 10%
York, and Philadelphia’s workforce heavily

0%
depends on public transit systems.
• Minimal YoY growth in Texan markets may
indicate the “new normal” for office
occupancy across the country. Based on daily percentages with max defined as average user activity between 2/3/20 and 6/1/2022. Excludes weekends and federal holidays
Source: Kastle, JLL Research

Retail +
hospitality

Hospitality Baltimore Average Daily Rate
May 2022 ADR: $130.43
$135.00
27%
Year-over-year increase in
$125.00
$115.00
Beginning of the
Pandemic
May 2021 ADR: $102.95
Average Daily Rate

$105.00
• Baltimore’s Average Daily Rate

experienced a year-over-year increase
$95.00
from $103/night to $130/night.
• Revenue Per Available Room (RevPAR),
$85.00
a hotel performance metric that
measures ADR and occupancy,
increased from $60.71 in May 2021 to $75.00
$84.81 in May 2022, but is still shy of
pre-pandemic levels of $92.75 recorded
in May 2019. $65.00
Jun-20
Jun-21
Aug-20
Aug-21
Feb-20
Sep-20
Feb-21
Sep-21
Feb-22
Oct-20
Oct-21
Mar-20
Jul-20
Dec-20
Mar-21
Jul-21
Dec-21
Mar-22
Jan-20
Apr-20
May-20
Jan-21
Nov-20
Apr-21
May-21
Jan-22
Nov-21
Apr-22
May-22
Source: CoStar, JLL Research
Visitor foot traffic
Inner Harbor foot traffic activity
+8% 120%
Change in visitor foot traffic from the May 2019 levels (%)
Pre-pandemic levels: May 2019
100%
Year-over-year increase in Inner Summer 2021

peak: 85%
Harbor foot traffic activity 80%

May 2022: 66%
• Compared to levels recorded in May 2019, 60%

May 2021: 58%
visitor foot traffic in Baltimore’s Inner

Summer 2020
Harbor, which excludes resident and 40%
peak: 38%
employee foot traffic, increased from 58%
in May 2021 to 66% in May 2022. Beginning of
20% the pandemic:
• Foot traffic activity is on track to reach 5%
near pre-pandemic levels this summer.

0%
Source: Placer.ai, JLL Research

Vehicle trips
Vehicle trips per month
119% 130%
Change in trips relative to the corresponding month in 2019 (%)

120%
119%
Vehicle trips vs. 2019 levels 110%
• Vehicle trips in February exceeded pre- 100%

Pre-pandemic levels: January 2020
pandemic levels for the fifth-consecutive

month and are expected to remain 90%
elevated moving further into 2022.

80%
• The growth in vehicle trips across the
state can be attributed to a combination 70%
of factors, including the increase in car

ownership rates and flexible work 60%
schedules that allow for midday errands.

50%
In any case, increased mobility around
the state is highly beneficial for retailers
as it increases visibility and promotes
cross-shopping opportunities.
Source: USDOT, BTS, JLL Research
Retail Spending Year-over-year changes in spending
+14.7%
Year-over-year increase in total
Gasoline Stations
Apparel & Accessories
Miscellaneous Retail
retail spend in Maryland Sporting Goods, Hobbies, & Music
Motor Vehicle & Parts
• Comparing February 2021 YoY retail sales Building Material & Supplies
to February 2022 YoY figures suggest a
significant recovery in retail spending. Furniture & Home Furnishing
• Retail spending in all categories increased Health Care & Personal Care
from February 2021 to February 2022 with General Merchandise

the greatest increase in gasoline, though
the price of gasoline increased 50% Restaurants & Bars
during this same period. Electronics & Appliances
• Spending on restaurants and bars -30% -20% -10% 0% 10% 20% 30% 40%
continue to rise with a 7% increase YoY. February 2021 YOY February 2022 YOY
Source: US Census; JLL Research

Investment
activity in
Maryland

Venture capital
2022 Maryland venture capital investment
+$1B
Venture capital investment YTD
Company
Robotic Research
Aledade
Industry
Business + Productivity
Software
Managed Care
Date
05-May-2022
06-Jun-2022
Round
Series A
Series E
Amount
$242,000,000
$123,000,000
HQ City
Clarksburg, MD
Bethesda, MD
Facet Wealth Financial Services 19-Jan-2022 Series C $100,000,000 Baltimore, MD
• 2022 investment represents over 48% of Business + Productivity

SamCart 07-Apr-2022 Series B $82,000,000 Fulton, MD
the $2.1B in 2021. Maryland is on-pace for Software
another significant year. Curbio

Media and Information
Services
18-Jan-2022 Series B $65,000,000 Potomac, MD
• The software and financial industries are Adaptive Phage Therapeutics Drug Discovery 04-Apr-2022 Series B $61,000,000 Gaithersburg, MD
the dominant recipient of VC investments
in 2022. Ion Storage Systems Electrical Equipment 09-Feb-2022 Series A $30,000,000 Beltsville, MD
• In 2021, Baltimore and Bethesda- RNAimmune Drug Discovery 29-Mar-2022 Series A $27,000,000 Gaithersburg, MD
headquartered companies led the state Network Management

Enveil 27-Apr-2022 Series B $25,000,000 Fulton, MD
with investments totaling $186 million Software
and $159 million, respectively. Bearn

Healthcare Technology
Systems
01-Apr-2022 Series A $20,000,000 Rockville, MD
VC Investment activity among Maryland-based companies
Source: PitchBook, JLL Research

IPO activity
IPO activity in Maryland
$198 M
Maryland IPO transaction value
$5.0
$4.5
$4.0 $3.9 B
$3.6 B
$4.4 B
30
25
Total transaction value ($ Billions)

$3.5
IPO count per year (#)

20
YTD $3.0
$2.5 15
• Maryland secured $649 million in IPO
$2.2 B
$2.0
equity in 2022 from four offerings. $1.2 B
$1.6 B
10
$1.5
• One of the three IPOs was a product of $1.0

$932 M $871 M
$672 M 5
Special Purpose Acquisition Companies $0.5
$504 M
$294 M
$198 M
(SPAC’s). $0.0
$43 M
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
• Gaithersburg-based biotech firm Arcellx,
completed the largest IPO in 2022, Non-SPAC 2022 Regional IPO’s
securing $124 million in equity. Arcellx (NAS:ACLX) Life Sciences 2/4/2022 $123,770,000 Gaithersburg, MD
Constellation Energy Group (NAS:CEG) Utilities 1/19/2022 NA Baltimore, MD
IPO activity among Maryland-based companies

M&A activity
M&A activity (Maryland-based companies)
$5.8B
Maryland M&A activity YTD
$35
$30
$30.6 B
180
160
140
Count of mergers & acquisitions per year (#)

Total transaction value ($ Billions)
$25
120
$20.4B
$20 100
• Following a record-high year in 2021, 55 $16.9 B
M&A deals have been completed $15 $14.2 B

$15.9 B
80
among Maryland companies in 2022,
totaling $5.8 billion. $9.9 B
$9.4 B
60
$10
• Columbia-based Magellan Health was

$8 B
$7.4B $7.1 B 40
$6B $5.8 B
acquired by Centene (NYS:CNC) for $2.2
$5.5 B
$5
billion, the largest deal in 2022. Five 20
deals have been completed ≤ $500 $0

million. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
M&A activity Maryland-based companies

M&A activity
38
M&A deals (Maryland-based investors)
140
120
120
112
M&A deals among Maryland-
M&A deals among Maryland companies as investors

108 107 108
based investors YTD

100 95
93
90
80
80 75
• Maryland companies have made 38 69
65
M&A deals totaling $60 billion in 2022 as 60
investors.
• Silver Spring-based Discovery acquired 40 38
New York-based Warner Media for $40

billion, by far the largest deal in 2022. 20
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
M&A activity among Maryland-based investors

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Pulse of the Market

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4.2% 99.3% 137,000 50.3%

119% 14.7% 66% $1B

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Distance from employment recovery (%)

due to the Omicron variant. -8% -7.3%

• The Fed’s decision to hike its benchmark -8.7%

Source: BLS, JLL Research

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Distance from employment recovery (%)

• Baltimore outpaces regional competitors,

Philadelphia, in employment recovery. Washington, DC

Source: BLS, JLL Research

points in April to 4.2% and 160 basis-

Source: BLS, JLL Research

Among major markets 18.2

• The region’s noncyclical economy,

Los Angeles New York Chicago Pittsburg Philadelphia Baltimore

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Baltimore MSA full-time unique job postings by month

• Labor demand remains strong despite 60,000

hike of an additional 75 basis points

Baltimore full-time remote job postings (% of total jobs)

Share of remote postings 5.0%

• Share of remote roles in Baltimore have 4.0%

increased every month for the past five

total postings every month since August

• These figures suggest that remote work is

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Computer and Math

Office and Administrative Support 12,235

for Healthcare Occupations Sales 12,235

Business and Financial Operations 9,039

Transportation and Material Moving

Support employees are the most in-

the resiliency of Baltimore’s labor Healthcare Support 4,817

market. Installation, Maintenance, and Repair 4,209

Architecture and Engineering 3,844

vulnerable than others to rate hikes. Protective Service 2,057

Life, Physical, and Social Science 1,639

0 5,000 10,000 15,000 20,000 25,000

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Current office occupancy rate 70.00% 2022 peak: 55.4%

2021 peak: 45.5%

• Office occupancy in Baltimore 50.00%

to the uptick in COVID-19 cases but is 0.00%

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4th 2021 Peak Current Value - June 2022

Weekly badge swipe count as a percentage of pre-Covid

Baltimore vs. major markets

Mid-Atlantic neighbors, Washington, DC, 30% 28.8% 29.4%

New York and Philadelphia. This can be

York, and Philadelphia’s workforce heavily

Source: Kastle, JLL Research

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May 2021 ADR: $102.95

Average Daily Rate

• Baltimore’s Average Daily Rate

Year-over-year increase in Inner Summer 2021

Harbor foot traffic activity 80%