Suburban Maryland Industrial Market Figures Q4 2022

After another whirlwind year, 2023 is expected to see continued positive momentum for industrial real estate fundamentals across the country. Global supply chains are still in flux due to uncertainty with Chinese Covid-19 policies, the conflict in Ukraine, and labor issues in domestic ports. Companies will look to diversify their product sourcing to navigate these challenges, and industrial demand is expended to keep pace with supply in the coming quarters.

Suburban Maryland, like many other markets, has seen a moderate slowdown of tenant demand in the fourth quarter, but an overall net positive movement for fundamentals in 2022. With the benefit of proximity to Baltimore’s deep-water port, as well as Washington, D.C.’s highly educated labor force, Suburban Maryland offers tenants a unique competitive advantage over many of its neighboring markets, and commands higher rent premiums compared to those areas.

Suburban Maryland, comprised of Frederick, Montgomery, and Price George’s counties, posted a moderate 413,138 sq. ft. of net absorption in the fourth quarter. Vacancy has parked itself near the historic low set last year, ending 2022 at 2.5%. Prince George's County, with 1.9% warehouse vacancy and historically limited land availability, has experienced astounding rent growth, over 31% in the last 18 months.