Market Overview - I-95 Corridor
Leasing activity remained steady in the first quarter of 2022. In Prince George’s County, it was relatively quiet for executed leases; however, several notable deals were signed. MTC leased 48,000 square feet at 4600 Hargrove Drive, Hello Fresh leased 46,530 square feet at 3300 Hubbard Road and Atlantic Hardware leased 45,000 square feet at 2500 Schuster Drive. While the leasing velocity was not as strong as the previous quarter, there are several deals in the pipeline that will likely close in the coming quarters.
Tenant activity was a little more robust in the areas surrounding Baltimore. Two notable large deals were signed in the first quarter of 2022. Apollo Retail Specialists, a retail merchandising support company, signed for 265,423 square feet at 1747 East Patapsco Avenue in Baltimore City and just down the street at 1701 East Patapsco, Relish Labs signed for 171,606 square feet.
Market Overview - Washington County / Hagerstown
The Washington County/Hagerstown market registered just over 273,000 square feet of positive demand during the first quarter of 2022. This is slightly below the 2021 quarterly average of 319,711 square feet. Vacancy ended the quarter at 6.7 percent, an 90-basis point decrease from a year ago. Total square feet under construction ended at 4.1 million square feet with the groundbreaking of two large projects, Dickenson Farm and the Interstate Trade Center. Overall asking rental rates decreased in the Washington County/Hagerstown market, however, this is due to the low availability of quality space in the market. New construction is asking in the upper $5.00 range.
Market Overview - Frederick County
The Frederick County industrial market registered 24,733 square feet of positive absorption during the first quarter. Overall vacancy ended the quarter at 4.9 percent, down from 5.6 percent at this time last year. There were no deliveries this quarter, after adding 276,000 square feet in the previous quarter. Frederick had over 800,000 square feet under construction to end the first quarter, down from 1.4 million this time last year.
Market Overview - Montgomery County
The Montgomery County industrial market registered 108,114 square feet of positive absorption; an increase compared to 24,615 square feet from the fourth quarter of 2021. Overall vacancy was at 5.9 percent to end the quarter, this was an 80-basis point drop from 6.7 percent a year ago. Both buildings at 700 N Frederick Ave in Gaithersburg, MD are still under construction, totaling 619,800 square feet, and are expected to deliver in late 2022.