The second quarter shows reason for optimism regarding the Baltimore area’s industrial market while the office market is growing at a snail’s pace.
According commercial real estate service Cassidy Turley, the industrial market in Baltimore is one of the strongest among second tier markets in the nation.
Industrial market takeaways
- Industrial space in Harford County is in high demand. The county posted nearly 65,000 square feet of positive absorption and vacancy rates fell to 5 percent.
- The Interstate 95 North submarket posted a vacancy rate of 7.48 percent while the Interstate 95 South submarket recorded a 12.63 percent vacancy rate.
- The the absorption rate in the I-95 North submarket reached 121,357 square feet and the I-95 South submarket had a negative absorption rate of 147,663 square feet.
- Tenant concessions in the I-95 North submarket stayed flat and are anticipated to remain that way for the next year. Meanwhile tenant concessions in the I-95 south market driven by an increase in demand.
Office market takeaways
- Overall the metro market experienced a 227,000 square feet of positive absorption in the second quarter. That’s just a slight increase from the first quarter.
- Class A office space in Baltimore was at a 13.26 percent vacancy rate. The tight market spurred more development in that market, for example office construction at Foundry Row.
- The BRAC related office boom that never happened still haunts the Harford County market. That county’s vacancy rate of 36.14 percent is nearly twice as high as the next highest submarket.
- The average asking rent fell from $22.91 per square- foot from the first quarter to $22.30 per square-foot in the last quarter.