With strong fundamentals and tight vacancy, the Baltimore industrial market remains healthy amid new speculative construction deliveries and slow but steady rent increases. The second quarter posted 763,476 square feet of positive absorption, pushing the mid-year total above 1.8 million square feet. Industrial sales volume surged in Q2 with transactions totaling $450 million square feet, according to reports from CBRE.
“The recent development and leasing of large footprint distribution facilities has been driven by consumer demand for same day or next day delivery. We expect these fundamentals to remain strong throughout the rest of the year,” said Bill Pellington, Senior Vice President, CBRE Industrial and Logistics Group.
The largest second-quarter leases include FILA USA’s 731,862-square-foot renewal and expansion at 7629 and 7630 Gambrills Cove Road (Baltimore/Washington Corridor), Kuehne+Nagel’s 656,880-square-foot lease at 1100 Woodley Road (Harford Cecil County) and a confidential automotive company lease of 176,651 square feet at 7101 Troy Hill Drive (Baltimore/Washington Corridor).
The largest sales transactions included Blackstone REIT’s purchase of FRP Development’s Warehouse Portfolio of 40 properties, 25 of which are in the Baltimore Metro. Consolidation of industrial ownership has begun to take shape and is expected to continue, as Prologis announced recently that it will acquire DCT Industrial Trust.
A total of 3.5 million square feet of industrial product is under construction, a slight decline from Q1 that can be attributed to the recent delivery of 1.6 million square feet. The arrival of about 1.5 million square feet in warehouse product featured Tradepoint Atlantic’s 979,200-square-foot speculative warehouse at 6001 Riverside Drive in Baltimore County East and DCT Industrial’s Terrapin Commerce Center, which includes 126,000 square feet at 7200 Dorsey Road and 93,500 square feet at 7171 Dorsey Road in the Baltimore-Washington Corridor.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
