More than 2.7 million square feet of industrial/warehouse space was leased in the greater Baltimore metropolitan region, nearly replicating the nearly 2.6 million square feet of space leased in the first quarter 2022, according to a report released by Lee & Associates Maryland.
These figures add to the approximately 15 million square feet of industrial/warehouse space leased in the region during last year, according to the fully-integrated commercial real estate brokerage and management firm headquartered in Columbia.
Net absorption rose to 1.7 million square feet of space, after registering approximately 930,000 square feet of space in the first quarter and the overall vacancy rate rose to 3.95% from 3.7% for the first quarter. Nearly 15 million square feet of space is now under construction, a volume that is substantially above the 12.2 million square feet of space reported last quarter.
Approximately 1.6 million square feet of space was delivered in Q2, bringing the total volume of space delivered in 2022 to approximately 3.6 million square feet of space. Average asking rents rose to $7.66 from $7.28 per square foot. Sixty-six sales transactions were completed at a cumulative value of nearly $517 million. Approximately 10.3 million square feet of industrial/warehouse space is available for lease locally, down from 10.9 million last quarter.
Significant industrial sales included the $104.8 million acquisition of 10900 Hopewell Road in Hagerstown by Fundrise; the $80.5 million purchase of 1900 Clark Road in Havre De Grace by Apollo Net Lease Capital Corp. and B.J. Wholesale Club’s $47.5 million acquisition of 451 Fletchwood Street in Elkridge.
The area’s largest leases were the 598,000-square-foot lease signed by Baltimore International Warehouse & Transportation at 2800 Eastern Boulevard in Middle River; the 186,000-square-foot lease at 8700 Robert Fulton Drive in Columbia by Infarm and Alcon’s 142,000-square-foot lease at 6740 Business Parkway in Elkridge.
The largest construction projects underway in the greater Baltimore metropolitan region include a 1.8 million-square-foot building at Tradepoint Atlantic that will be delivered in the third quarter, a 1.2 million-square-foot building at 55 W Oak Ridge in Hagerstown scheduled for a fourth-quarter delivery and another 1.2 million -square-foot building at 10440 Downsville Pike that is scheduled to be completed in the second quarter of 2023.