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Maryland Industrial Report Q3 2022

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Market Overview - I-95 Corridor

Tenant activity continued to be strong in the Baltimore market during the third quarter. One of the largest deals signed was Xpress
Global Systems who leased 125,350 square feet at Southside Logistics Center 2 at 4601 Curtis Avenue in the Baltimore SE submarket.
In Prince George’s County, ReadySpaces leased 96,325 at 3341 75th Avenue in Landover, and Design Foundry signed for 75,767
square feet at 1701 Brightseat Road in Landover as well. Construction activity along the corridor remained robust and rental rates in
the region continued to rise.

Market Overview - Washington County / Hagerstown

The Washington County/Hagerstown market had flat demand, returning 5,091 square feet of space during the third quarter. Vacancy ended at 12.9 percent, the same as the previous quarter and is up from a year ago when it stood at 6.6 percent. While no buildings delivered, over 2 million square feet of inventory has delivered this year. At the end of the quarter, just under four million square feet was under construction. Overall asking rental rates in the Washington County/Hagerstown market remained flat dropping $0.01 to end at $5.74 per square foot.

Market Overview - Frederick County

The Frederick County industrial market registered 235,239 square feet of positive absorption in the third quarter, compared to 38,477 square feet the previous quarter. Despite strong positive absorption, vacancy increased to end the quarter at 6.0 percent up 180-basis points from the previous quarter due new product being delivered. For the first two quarters of 2022, there were no new deliveries but that changed in the third quarter when 571,028 square feet was delivered. At the end of the quarter, the Frederick market still had 1.5 million square feet under construction.

Market Overview - Montgomery County

In the third quarter the Montgomery County industrial market registered 41,546 square feet of positive absorption compared to negative 118,707 square feet in the second quarter. Positive absorption and a lack of new supply to the market caused vacancy to decrease by 100-basis points from the second quarter. The market’s 5.4 percent vacancy marks a historic low down from the historic high of 12.2 percent in the third quarter of 2012. New construction continued to be stagnate with nothing delivering thus far in 2022 and nothing currently under construction.

Port of Baltimore

Maryland Industrial Report Q3 2022

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