Q1 2021 Baltimore Market Report - Industrial

Baltimore industrial market fundamentals continue to be insulated from the effects of the Coronavirus pandemic in the first quarter of 2021. The region is primed for continued growth as leasing activity continues to remain high, leading to decreasing vacancy and increasing asking rates. First-quarter vacancy continued to decline, ending at 8.2%, a 110-basis point (bps) increase
from year-ago levels. Average industrial rents recorded at $7.38/SF, a $0.51/SF increase from year-ago levels. Warehouse rates were recorded at $6.09/SF while flex was $11.57/SF, increasing from year-ago levels by $0.47/SF and $0.03/SF, respectively. First-quarter occupancy recorded at 602,621 square feet, continuing the third-consecutive quarter of positive absorption. Though pandemic-induced uncertainty continues to affect office market fundamentals, the Baltimore industrial market’s low vacancy, increasing asking rates, and limited supply have kept the market insulated from pandemic-induced shocks.