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Baltimore
Industrial Q1 2019
Numbers above are quarterly averages; October and November 2018 data used to represent Q4 2018 The Baltimore warehouse/distribution market netted a positive
64,101 sf of absorption with 162,348 sf falling into the Beltway
Market Indicators (Overall, All Property Types) Submarket of Baltimore. Warehouse direct rents in the first
quarter of 2019 sit at $4.99 psf a 3.9% decrease YOY. Landlords
12-Month
Q1 18 Q1 19 and tenants are adjusting to the additional swing in inventory to
Forecast
the market and as this space is leased expect a spike in rental
Vacancy 6.4% 7.1%
rates.
YTD Net Absorption (sf) 1.3M 225k
Under Construction (sf) 839k 5.9M Southern Glazers and UPS both signed new leases in the
warehouse sector of the Baltimore Industrial Market. The two
Average Asking Rent* $5.75 $5.51
.
deals totaled over 400,000 sf. Southern Glazers signed a deal at
*Rental rates reflect net asking $psf/year 7001 Quad Ave in the Baltimore County East submarket for
209,934 sf and UPS inked their deal at 600 Hickory Drive in
Harford County for 205,030 sf.
Overall Net Absorption/Overall Asking Rent
4-QTR TRAILING AVERAGE The office services market rebounded in the first quarter of 2019
with a 90 bps decrease in vacancy YOY to 6.9%. The first
2,000,000 $6.00
quarter also welcomed 161,318 sf of positive absorption a 27%
1,800,000
$5.75 increase YOY. Rental rates for the office services market
1,600,000
increased 2.5% YOY to $10.33 psf.
1,400,000 $5.50
1,200,000 1801 62nd Street in the Northeast Baltimore submarket was the
$5.25
1,000,000 only new project to deliver to the market, the 94,130 sf project
800,000 $5.00 delivered vacant. The Pipeline for the rest of 2019 continues to
600,000 be strong with an additional 3.9 msf slated to deliver, with 60% of
$4.75
400,000 this inventory preleased.
200,000 $4.50
2012 2013 2014 2015 2016 2017 2018 2019
Outlook
Net Absorption Asking Rent, $ PSF The Baltimore industrial metro market will continue to shine in
2019, as companies are attracted to the location and affordability
the region provides. Already in 2019 Floor & Décor, Home Depot
Overall Vacancy and Smithfield have inked new build-to-suit deals in the market.
Tenants are showing a lot of interest in the northern portion of
12%
the Baltimore Metro with new projects at Tradepoint Atlantic and
10% Principio. As these projects lease up there will be additional
pressure on tenants that will drive rental rates north. Investors
8% have also found the market attractive and will continue to invest
Historical Average = 8.3% in the market for 2019 as it offers an affordable alternative to the
6% Washington D.C. and Northern Virginia markets.
4%
2%
0%
2011 2012 2013 2014 2015 2016 2017 2018 2019
cushmanwakefield.com
MARKETBEAT
Baltimore
Industrial Q1 2019
4611 Mercedes Dr 70,133 McCormick & Co. Inc New Lease Harford
8970-8990 Route 108 84,514 Feldman Bergin Development $9,950,000 / $117 Howard County
cushmanwakefield.com David.Spragg@cushwake.com ©2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources
believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as
to its accuracy.