More Than 2.3 Million Square Feet of Industrial Space Leased in Greater Baltimore Area in Q4 2022 Says Lee & Associates

Consistent year-after-year demand spurs construction activity of more than13 million square feet 

More than 2.3 million square feet of industrial/warehouse space was leased in the greater Baltimore metropolitan region in fourth quarter 2022, according to a report generated by Lee & Associates | Maryland. The fully-integrated commercial real estate brokerage and management firm headquartered in Columbia also published data that indicates a net absorption of more than 1.2 million square feet of space, contributing to an overall vacancy rate of 4.5%, with more than 13 million square feet of space currently under construction. This compares to fourth quarter 2021 statistics showing more than 4.4 million square feet of industrial/warehouse space leased, net absorption of nearly 3.7 million square feet of space, a vacancy rate of 3.4% and approximately 14 million square feet of space under construction.

“Although the volume of industrial/warehouse space leased regionally is down from totals reported one year ago, the total amount of space under construction is consistent with year-end 2021 statistics, which represents continued confidence in this asset class,” stated Tom Whelan, Principal, Lee & Associates | Maryland. Equally as important, rental rates for Class A product remain at all-time highs, although rent growth has leveled off to a certain extent. Projected economic concerns and a rising interest rate environment have contributed to a decrease in sales activity but, overall, we fully expect the industrial market to remain robust in the Greater Baltimore area in 2023.”

Approximately 1.5 million square feet of space was delivered in fourth quarter 2022, the average rent is $7.87, nearly 360 million worth of sales transacted last quarter and just over 12 million square feet of space is currently vacant. In third quarter 2022, the vacancy rate was slightly lower at 4.41%, net absorption was more than one million square feet more at 2.3 million and the average asking rent stood at $7.90.

Significant leases signed in fourth quarter 2022 included Baltimore International Warehousing & Transportation’s 244,304 square foot lease at 5250-5330 Holabird Avenue; Amazon’s 241.962 square foot lease at 1713 E. Patapsco Avenue and the 168,655 square foot lease executed by Transdev at 1610 Wicomico Street.

On the sales side, Prologis acquired nearly 2.5 million square feet of space from their acquisition of Duke Realty for approximately $230 million; Capital Electric purchased nearly 365,000 square feet of space from Trammell Crow Company for $76 million; and NorthBridge Realty Holdings acquired approximately 160,000 square feet of space from The Colad Group for $21.2 million.

Over the past 12 months, nearly 4.6 million square feet of space was absorbed in Baltimore City and County; 1.6 million square feet of space was absorbed in Prince George’s County and more than one million square feet was absorbed in the Anne Arundel/Howard County area.

The largest construction projects underway currently consists of a nearly 2.2 million square foot and 1.3 million square foot building in Hagerstown, with a first quarter and second quarter delivery expected respectively. A one million square foot building is expected to deliver in third quarter in Port Deposit.

“The warehouse/industrial sector, both nationally and regionally, is still being impacted by changing consumer buying habits precipitated by the healthcare crisis, and the resultant need for additional space near major population centers to deliver products,” added Whelan. “Despite reports that this demand is coming to an end, we still see a long runway as evidenced by continued construction, especially locally.”

Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada. Lee & Associates provides superior market intelligence in office, industrial, retail, investment and appraisal to meet the specialized needs of our clients. Visit