Baltimore Industrial Investment Forecast
Baltimore's Ease of Access to Major Population Hubs Spurs Leasing and Investment Activity in the Metro
Vacancy drops to 26-year low. The ongoing rise of e-commerce coupled with the metro's strategic positioning between Washington D.C. and New York is fueling industrial demand in Baltimore. Leasing activity has been robust with tenants absorbing 3.0 million square feet over the past year lowering vacancy to 7.1 percent entering 2022. Larger commitments have been a primary driver of recent compression as firms signed nearly 30 leases last year that each totaled over 100000 square feet. Several factors indicate the metro will be able to sustain this momentum moving forward. More than 18 million people live within 100 miles of Baltimore and the metro provides industrial tenants more cost-effective options relative to other Mid-Atlantic markets. Additionally the reconstruction of the Howard Street Tunnel will support double-stack rail transport. Once complete the Port of Baltimore is poised to observe a significant rise in activity which may spur additional industrial demand locally.