Baltimore Area Sees 3M SF of Industrial Space Leased in Q2: Report
More than 3 million square feet of industrial space was leased in the greater Baltimore metropolitan area during Q2 2021, according to a new report by Lee & Associates of Maryland.
The biggest lease recorded was 520,000 square feet signed by Amazon (AMZN) at 1650 Sparrows Point Boulevard in Tradepoint Atlantic, a 3,300-acre global logistics center in Sparrows Point, Md.
That comes on the heels of the almost 4 million square feet of space leased in the previous quarter.
During Q2, rental rates rose by more than 4 percent, increasing from $6.44 to $6.73, which continued a consistent trend.
Additionally, industrial construction has increased dramatically, the report showed. Consistent year-over-year demand spurred construction activity of more than 10.3 million square feet, following a first quarter that recorded 6.5 million square feet.
Among the largest Maryland projects underway are: a 1.8 million-square-foot building at Tradepoint Atlantic that is expected to be delivered in June 2022; an 800,000-square-foot building in Williamsport, that will be completed in May 2022; and an 800,000-square-foot warehouse in Brandywine slated for delivery in August 2022.
“The major news of the quarter is the now frenetic pace of new construction activity in response to the seemingly insatiable demand for warehouse/industrial space in the greater Baltimore area,” Tom Whelan, principal of Lee & Associates of Maryland, said in a prepared release. “The only negative story from the past quarter is the availability of several larger warehouse spaces in the I-95 north corridor, which was the primary contributor to a slight rise in vacancy across the region.”
The report shows a net absorption of more than 500,000 square feet of space, and a current vacancy rate of 5.84 percent, up from 5.54 percent in the first quarter.
“We expect continued positive news for the balance of the year and the foreseeable future as companies seek additional space within dense population centers such as the Baltimore-Washington region,” Whelan said.
During Q2, 11 industrial sales were completed, totaling approximately $290 million. The largest was the $125 million sale of 7600 Assateague Drive, a 853,520-square-foot industrial property in Jessup, Md.
Other notable Maryland sales included 7101 Geoffrey Way, a 680,252-square-foot, Class B building in Frederick that sold for $52.5 million; and the $34.2 million sale of 7980 Tar Bay Drive, a 203,615-square-foot, Class B building in Jessup.