The largest leases of the quarter include: Capitol Warehousing’s 205,000 sq. ft. renewal at 8125 Stayton Drive (Baltimore/ Washington Corridor), McCormick’s 129,500 sq. ft. lease at 7001 Quad Avenue (Baltimore County East), and Showtime Productions’ 100,000 sq. ft. lease at 1301 Chesapeake Avenue (Baltimore City).
Warehouse fundamentals reside at all-time highs, with 2019’s 9.5 MSF of occupancy gains shattering the previous record of 6.6 MSF two years earlier. While robust development activity contributed largely to gains, the warehouse vacancy rate dropped 150 bps year-over year to 4.7% despite the addition of 7.5 MSF of new inventory, indicating broad demand that is expected to persist in 2020.
The Baltimore City warehouse submarket excelled during 2019, with the vacancy rate falling 60 bps during Q4 and 270 bps year-over-year to 3.2%.