Suburban Maryland Industrial Figures Q4 2025

Market activity in Suburban Maryland was a bit of a mixed bag to end 2025, though overall fundamentals remain stable. Despite minimal occupancy gains and increased vacancy, leasing and development activity remains strong, and rental rates continue to hover around historic highs.

Industrial tenants posted modest occupancy gains of around 63,000 sq. ft. during the fourth quarter and vacancy increased slightly to 6.9%. One property delivered fully occupied, but a handful of vacant deliveries contributed to the rising vacancy. No properties broke ground in Q4, but multiple projects are in the planning stages and are expected to break ground in the coming quarters.

Asking rates increased quarter-over-quarter due to new construction hitting the market. That said, rates in previously existing space remain largely unchanged, hovering near historic highs. However, landlords have demonstrated a greater willingness to negotiate lower rental rates to mitigate vacancies. Strong development activity is expected to keep these rates elevated.