Baltimore Industrial Figures Q1 2025

Despite economic uncertainty, Baltimore’s industrial market posted positive fundamentals to open the year. Bulk leasing was down during the first quarter, with only one deal exceeding 200,000 sq. ft. That said, deals over 50,000 sq. ft. totaled to more than 1 million sq. ft. leased. Further, many tenants increased their footprint, relocating to new spaces in the market or expanding at their current locations.

Net absorption was strong, with move-ins outweighing move-outs, in addition to the delivery of two fully-preleased warehouses. Year-over-year, vacancy increased by 20 basis points (bps), though the rate has stabilized around 7.5% since 2023. The Baltimore/Washington Corridor is projected to have multiple Class A vacancies become available in the coming quarters, potentially driving the Baltimore metro vacancy rate closer to 8.0%.

Four properties delivered and three broke ground, bringing the under-construction pipeline to 1.3 million sq. ft., all set to deliver by the first quarter of 2026. Deliveries in 2025 are expected to drop well below the 4.0 million sq. ft. delivered in both 2023 and 2024.