More than 2.3 million square feet of industrial/warehouse space was leased in the greater Baltimore metropolitan region in fourth quarter 2022, according to a report released Wednesday by Columbia-based real estate brokerage and management firm Lee & Associates | Maryland.
The company also published data that indicates a net absorption of more than 1.2 million square feet of space, contributing to an overall vacancy rate of 4.5%, with more than 13 million square feet of space currently under construction. This compares to fourth quarter 2021 statistics showing more than 4.4 million square feet of industrial/warehouse space leased, net absorption of nearly 3.7 million square feet of space, a vacancy rate of 3.4% and approximately 14 million square feet of space under construction.
Approximately 1.5 million square feet of space was delivered in fourth quarter 2022, the average rent is $7.87, nearly 360 million worth of sales transacted last quarter and just over 12 million square feet of space is currently vacant. In third quarter 2022, the vacancy rate was slightly lower at 4.41%, net absorption was more than one million square feet more at 2.3 million and the average asking rent stood at $7.90.
Significant leases signed in fourth quarter 2022 included Baltimore International Warehousing & Transportation’s 244,304 square foot lease at 5250-5330 Holabird Ave.; Amazon’s 241.962 square foot lease at 1713 E. Patapsco Ave. and the 168,655 square foot lease executed by Transdev at 1610 Wicomico St.
On the sales side, Prologis acquired nearly 2.5 million square feet of space from their acquisition of Duke Realty for approximately $230 million; Capital Electric purchased nearly 365,000 square feet of space from Trammell Crow Company for $76 million; and NorthBridge Realty Holdings acquired approximately 160,000 square feet of space from The Colad Group for $21.2 million.
Over the past 12 months, nearly 4.6 million square feet of space was absorbed in Baltimore City and Baltimore County; 1.6 million square feet of space was absorbed in Prince George’s County and more than 1 million square feet was absorbed in the Anne Arundel/Howard County area.
The largest construction projects underway currently consists of a nearly 2.2 million square foot and 1.3 million square foot building in Hagerstown, with a first quarter and second quarter delivery expected respectively. A one million square foot building is expected to deliver in third quarter in Port Deposit.