The largest leases of the quarter include: KeHE Foods’ 550,000 sq. ft. prelease at the Principio Business Park (Harford/Cecil), Coca-Cola’s 291,000 sq. ft. extension at 7210 Preston Gateway Drive (Baltimore/ Washington Corridor), and Ace Logistics’ 254,000 sq. ft. lease at 5250 Holabird Avenue (Baltimore City).
Warehouse fundamentals remain solid, with the current 5.2% vacancy down 140 bps year-over-year. With several preleased assets scheduled to deliver in Q4 along with several imminent move-ins, the market is projected to absorb over 9 million sq. ft. by year-end, shattering the previous record of 6.6 million sq. ft. in 2017.
Baltimore City has excelled with a warehouse vacancy rate at 3.8%. Zero Class A inventory is currently available in the submarket following the successful redevelopment and lease-up of several old manufacturing sites near the Port.