Baltimore Industrial Market Report

Distribution and manufacturing tailwinds weighed down by warehouse hurdles. Baltimore entered 2024 boasting the greatest cumulative rent growth since 2019 of any major Northeast market, reflecting the metro’s expanding industrial tenant base. Leasing trends in 2023 favored distribution facilities and manufacturing spaces, including by aerospace firm Rocket Lab, with a move to Middle River slated for this year. Overall net absorption in 2023 nevertheless slowed to the lowest level since the financial crisis, as more warehouses were relinquished than occupied. That behavior will likely extend in some degree through this year as e-commerce and omni-channel retailers trim their footprints amid less rapid consumer spending growth and higher operating costs. Following this settling, the long-term outlook for the market is aided by a tapering development pipeline, increasing Port of Baltimore throughput and household formation. Properties near the population centers of Baltimore and Columbia, as well as along Interstate 95 to Philadelphia, continue to register strong tenant demand.