Baltimore Industrial Figures Q4 2023

December 29, 2023 10 Minute Read

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Market fundamentals remain resilient in the Baltimore industrial market, which posted moderate activity to end the year. Economic uncertainty has impacted the market in 2023, causing indecision among tenants. The scorching rental growth seen in 2021 and 2022 has ceased, rates have begun normalizing, and a handful of prime warehouse spaces have delivered vacant.


Baltimore’s pipeline remains healthy and active, with 12 properties totaling 3.9 million sq. ft. currently under construction, a sign of strength in the current high interest rate and high construction cost environment. During the fourth quarter, the Baltimore industrial market recorded 260,000 sq. ft. of occupancy gain. Combined with solid occupancy gains during the first half of 2023, year-end totals reached 1.05 million sq. ft. of positive absorption, marking 12 consecutive years of positive absorption. Vacancy increased by 20 basis points to 7.0%; delayed move-in timelines and an uptick in sublease availability are major contributors to the vacancy increase.


While market fundamentals have plateaued relative to peak activity recorded during the pandemic, the Baltimore industrial market remains active and sentiment heading into 2024 is positive.