Figures

Suburban Maryland Industrial Figures Q4 2023

December 29, 2023 10 Minute Read

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Despite economic uncertainty and subdued activity, silver linings remain in the Suburban Maryland industrial and logistics market. The region commands premium rental rates and the development pipeline remains robust, even with historically limited land availability. While no properties delivered during the fourth quarter, 2.4 million sq. ft. delivered in 2023, a record high for new supply. The outlook for 2024 is for a healthy market, as post-pandemic changes in consumer spending and behavior normalize, and as macro-economic headwinds are expected to stabilize.

 

The market posted 468,000 sq. ft. of occupancy loss during the fourth quarter, driven by large sublease vacancies. However, annual absorption remains positive at 77,000 sq. ft. of occupancy gain. While this is the lowest level of absorption since 2015, the 11-year streak of positive absorption continues. Vacancy increased 70 basis points (bps) over the prior quarter, though still only 5.4% overall.