Skip Ribbon Commands
Skip to main content

News release


Baltimore Industrial Market Takes a First Quarter Breather

Q1 Lease Transactions Slow After Busy 2013; Market Prepares for Strong 2014

BALTIMORE, June 3, 2014 – Following a busy finish to 2013, Baltimore's industrial real estate market saw a 38 percent reduction in closed lease transactions during the first quarter of 2014 despite healthy tenant activity, according to JLL's first quarter industrial market outlook for Baltimore.  Net absorption remained solidly positive as vacancy dipped 9.3 percent.

"The activity in 2013 was robust, and there are still several moves in the pipeline," said Mark Levy, Baltimore Market Leader for JLL. "It's difficult to imagine a scenario where the level of absorption this year doesn't match or exceed last year."

The Baltimore industrial market saw healthy net absorption totalling 1.6 million square feet in 2013, and the number of transactions greater than 400,000 square feet in 2013 alone matched those of the previous three years combined.

This healthy demand from tenants has led to limited large blocks of available space and a jump in the development pipeline. More than 3.5 million square feet of industrial product is currently under construction, the most since 1999. These projects will deliver 92 percent leased.

Additional construction activity is expected to increase as the year progresses, with previously announced build-to-suit projects set to break ground.

“Developers are increasingly looking toward speculative projects in the BW Corridor and I-95 North markets,” added Levy. “The I-95 North market's vacancy rate is less than 5 percent.”
If the market has any downside, it is limited to smaller-size tenant relocations and capital markets activity. Both were sluggish in the first quarter, with first quarter building trades totalling less than $113 million.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. For further information, visit