Baltimore Industrial Market Report

Fundamentals remain tight amid slowdown in leasing. Following 10 consecutive quarters of positive net absorption, space demand fell into the red during the first three months of 2023. Despite the recent weakness in leasing activity, industrial fundamentals still remain tight by historical standards entering the second quarter. At 6.3 percent, vacancy is still more than 300 basis points below the long-term average. With a shrinking construction pipeline and minimal speculative projects, the rate of available stock should remain relatively steady throughout the rest of 2023. Looking longer term, the market’s strategic positioning along the Interstate 95 Corridor will continue to support strong space demand in areas like East Baltimore County and the Route 1-BWI Area. The prominent life sciences/biotech sector, meanwhile, is expected to drive leasing activity for wet lab and R&D space inside the city of Baltimore.