BALTIMORE-Industrial activity in the BWI Corridor slowed in recent months as companies are sitting back to see the result of the presidential election. Still, enough deals transacted during the period for the Baltimore region to only see a slight uptick in its third-quarter industrial vacancy rate, to 10.5% from 10.4%, according to the CBRE Group. “Uncertainty over the 2012 federal budget continues to drag on the Baltimore market,” said Chip Olsen, senior managing director for CBRE’s Baltimore office, in a prepared statement. “Steady leasing activity and a limited supply of available properties means landlord asking rates and abatement and concession packages are stabilizing,” he continued, noting that at the same time “users are also holding onto their cash longer and some are entering short-term agreements with termination options – a trend that’s likely to continue until after Election Day.”

All together, there was an overall net absorption for the market of negative 138,469 square feet. Some 556,801 square feet returned to the submarket due to significant move-outs and downsizes from Giant Food, Mohawk and Simpson Tile. However, the Harford/Cecil County submarket posted 632,366 square feet of net new growth due to move-ins and expansions.

The submarket’s saving grace is the lack of supply--no new buildings have delivered now for six consecutive quarters--and an increase in the number of large warehouse users in the market. At the same time, it is clear that the Baltimore industrial market had its share of struggles this compare. Compare its Q3 performance with numbers that it posted in Q1: it saw nearly 900,000-square feet of positive net absorption and vacancy rates were on a steady downward clip reaching 10.9% from 11.5% at the end of 2011.

CBRE also reports that industrial sales are trending well, and are likely to exceed last year’s volume by as much as 20%.

Instant Insights /

Industrial Leases, Sales Trend Positive for Baltimore

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