What is different, though, is that for the first time in many years Baltimore has outperformed Washington in net absorption. According to Delta Associates' figures, Baltimore absorbed 3.4 million square feet of industrial and flex space in 2008. Washington, by contrast, absorbed roughly one million square feet. "Typically the two metro areas will split absorption 50-50," Norton says.
Norton credits a range of factors for the discrepancy: the proximity to the Port of Baltimore and a healthy supply of space, among others.These were among the reasons the Baltimore area was the recipient of many large bulk leases last year, she speculates. Norton says the slowdown will continue in 2009. The region should start to recover by 2010 and 2011. By then it should be clear whether Baltimore and Washington have moved back to equilibrium in net absorption--or whether this is the start of a longer-term trend.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
