Baltimore Industrial Market Report

Both demand and new supply soften amid infrastructure tailwind. This year’s delivery slate — constituting roughly a fourth of the trailing five-year average — is poised to provide some relief to Baltimore’s industrial vacancy. Since falling to a historically low level in mid-2022, the rate has risen 360 basis points. Additionally, the ongoing expansion of the CSX’s Howard Street Tunnel should bolster long-term demand by enabling double-stack freight service, which will and improve port connectivity to the Midwest. Nevertheless, the trailing 12-month interval ended in April marked the weakest annual net absorption in Baltimore since the financial crisis. The primary contributors to recent steep declines were move-outs from pre-2000-built warehouses and an overall slowdown in new leasing activity. Leased square footage signed in the first five months of 2025 also fell short of the prior five-month total by about 20 percent, suggesting headwinds tied to softening demand have yet to subside. As such, ongoing corrections in the average asking rent are likely to persist through the remainder of the year, following a historically large decline over the 12 months ended this March.