Silver Spring is served by excellent infrastructure and convenient access to major interstates. With boundaries at Eastern and New Hampshire avenues, this area extends to the Beltway for office and condominium properties. The apartments market encompasses a greater area to the north that includes portions of Wheaton. Silver Spring’s office market has experienced light demand in recent years. The apartment market is improving modestly.
Several large apartment projects under way
Effective rents for Class A apartments increased to $2,051 a month in the third quarter, a 3.7 percent increase from year-end 2011. The overall vacancy rate for Class A units decreased to 12 percent, from 18.9 percent the quarter prior, yet is up from 4.2 percent from year-end 2011. A stabilized vacancy rate at 4.1 percent in Silver Spring compares to the higher suburban Maryland vacancy rate of 4.4 percent in the third quarter. Concessions were modest and slightly below the state average, offering a 3.2 percent discount on face rents.