The industrial real estate market in Baltimore has shown remarkable resilience and growth in the fourth quarter of 2024, despite facing significant economic disruptions throughout the year. After the initial boom in industrial activity driven by the pandemic, the U.S. industrial market began to normalize, and Baltimore followed suit, posting positive fundamentals even amid challenges like the Key Bridge collapse. With improving economic conditions and the federal reserve’s third consecutive interest rate cut in December, the Baltimore industrial market remained robust, demonstrating the region’s strategic importance and investor confidence.
Strong Leasing Activity Drives Market Momentum
During the fourth quarter, industrial tenants in Baltimore signed leases totaling an impressive 2.8 million square feet. The Baltimore/Washington Corridor emerged as the focal point of leasing activity, accounting for 49% of the total volume. This area also recorded five bulk transactions, each exceeding 100,000 square feet. The dominance of large transactions in Q4 reflects a trend seen throughout 2024, with bulk transactions making up 69% of the total square footage leased despite representing only 22% of all deals signed.
Conversely, smaller deals—those under 50,000 square feet—comprised 61% of all transactions but accounted for just 20% of the total leasing volume. This dual dynamic highlights the diversity of tenant demand, with both large-scale logistics operators and smaller industrial users seeking space across the region.
Major Move-Ins and Record Absorption
Q4 saw significant occupancy gains, driven by high-profile move-ins. Notably, Floor & Décor’s 1.3 million square foot build-to-suit facility at Tradepoint Atlantic played a pivotal role in boosting the market’s performance. Several other impactful move-ins across various submarkets contributed to a total of 2.1 million square feet of positive net absorption during the quarter, marking the highest level of quarterly absorption since Q4 2022.
This strong absorption underscores Baltimore’s appeal as a prime location for industrial operations, particularly for companies in the logistics and distribution sectors. The combination of modern facilities, strategic access to major transportation routes, and proximity to key markets along the East Coast continues to attract national and regional tenants.
A Resilient Market with Positive Fundamentals
Baltimore’s industrial market continues to demonstrate its strength in the face of economic uncertainty. The region’s ability to sustain positive fundamentals, even amid disruptions, reflects its long-term viability and the enduring demand for industrial space.
As the market moves into 2025, investors and tenants alike are optimistic about future prospects. The stabilization of economic conditions, combined with Baltimore’s strategic location and growing infrastructure, positions the market for continued success. Looking ahead, further development and leasing activity are expected to bolster the region’s industrial landscape.
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