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Maryland Industrial Report Q4 2021

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Market Overview

Leasing activity was strong in the Baltimore/I-95 Corridor. In Prince George’s County CVI took the entire building at 3101 Pennsy Drive for 103,000 square feet in Landover. Wattco Industrial Heaters leased 75,000 square feet at 716 Ritchie Road in Capitol Heights which brought the property to full occupancy. Another sign of health in the Prince George’s County industrial market comes in the form of two expansions of existing tenants. Iron Mountain expanded for 48,000 square feet at 4500 Hargrove Drive and PODS expanded 45,000 square feet at 1811 Cabin Branch Drive.

Tenant activity was equally as strong in the areas around Baltimore. Crane Logistics signed for 135,600 square feet at 7090 Troy Hill Drive in Elkridge and Dominion Electric Supply leased 123,640 square feet at 6600 Cabot Drive in Glen Burnie. Additionally, two large leases were signed in the fourth quarter at 6940 San Tomas Road where 84 Lumber and Kimnori USA signed for 84,661 and 59,263 square feet, respectively.

 

Demand & Supply

The Baltimore/I-95 Corridor industrial region delivered another 523,734 square feet in the fourth quarter, bringing total deliveries for 2021 to 2.8 million square feet. For the year Harford accounted for 1.3 million square feet of the total 2.8 million square feet delivered in the Baltimore/I-95 corridor.

Demand in the fourth quarter was the strongest for the year at 2.6 million square feet, bringing the 2021 total net absorption to 6.4 million square feet, eclipsing the previous high-water mark set in 2020 of 5.9 million square feet. Warehouse continued to be the most impactful demand driver in the market accounting for 87 percent of the fourth quarter net absorption and 93 percent of the 2021 total net absorption.

Vacancy 

On the heels of the sixth straight quarter of positive absorption and the strongest quarterly absorption since the third quarter of 2020, vacancy decreased by 70 basis points to end 2021 at 7.1 percent. Vacancy continued to dropped despite substantial new construction being consistently delivered to the market.

Rental Rates

Overall average asking rents climbed for the ninth straight quarter ending the year at $8.09 per square foot on a triple net basis. Rents are up $0.88 (12 percent) from the end of 2020 and up $1.73 (27 Percent) from the start of the pandemic.


Port of Baltimore

Maryland Industrial Report Q4 2021

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