BALTIMORE, MD—Baltimore's industrial leases may have dropped 38% in the first quarter, according to JLL, but leasing in its supply pipeline is unusually robust. JLL also estimates that the market's industrial pipeline is 92% leased, another reason to support JLL's belief that the second quarter will be a strong one for this asset class.
There is more than 3.5 million square feet of industrial product currently under construction, the most since 1999. "There are a lot of deals also at the letter of intent phase, Mark Levy, Baltimore Market Leader for JLL, tells GlobeSt.com. "That too will lead to additional leases being signed."
Additional construction activity is expected to increase as the year progresses. There are also previously announced build-to-suit projects set to break ground.
Spec is not far behind for the BW Corridor and I-95 North markets, Levy says, noting that the I-95 North market's vacancy rate is less than 5%.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
