Supply & Demand
The Baltimore industrial market gained momentum in Q3 2026, recording more than 563,000 square feet (sf) of positive net absorption and as vacancy declined by 30 basis points (bps) since the prior quarter to 8.9%. Still, the recovery remains uneven. Year-to-date (YTD) net absorption remained negative at 146,000 sf, while several of the market’s largest transactions were relocations, renewals, or future-dated commitments that have yet to impact occupancy. Despite these headwinds, vacancy declined in each of the first three quarters of 2026.
The improvement was most evident in I-95 North (I-95N), which accounted for most of the market’s Q3 occupancy gains. The corridor recorded 390,614 sf of positive net absorption, its strongest quarter of 2026, while vacancy declined 50 bps to 8.4%. Spreetail’s 571,762-sf occupancy at 610 Chelsea Road helped narrow I-95N’s YTD occupancy losses to less than 143,000 sf. Leasing momentum also strengthened, with four new leases exceeding 200,000 sf totaling 1.6 million square feet (msf) through the first three quarters of 2026, compared with two such transactions totaling 1.2 msf during all of 2025. Additional occupancy gains are expected as future-dated commitments commence, including Herr’s Foods’ 502,200-sf lease scheduled for early 2027.
While I-95N accounted for most of the market’s Q3 occupancy gains, the BW Corridor also showed signs of improvement, recording 172,983 sf of positive net absorption and lowering vacancy by 20 bps to 10.5%. CookUnity’s 98,000-sf move-in at 8730 Bollman Place represented the corridor’s largest addition from a new tenant. Still, relocations and renewals limited net -new demand, with renewals accounting for four of the six transactions exceeding 100,000 sf. The quarter’s largest transaction, Saval Foods’ 218,000-sf lease in Columbia, supports future occupancy but will also create additional vacancy when the company consolidates and ends operations at its Elkridge facility by year-end 2027.
The construction pipeline totaled 2.5 msf, 15.7% below the trailing five-year average, with neither corridor recording a new construction start in Q3. Amazon began site work on a planned 1.2-msf facility Bainbridge Logistics Center, though the project will not add available space to the market. At 1.1msf, I-95N’s pipeline remained below 2.0 msf for a fourth consecutive quarter, while only 387,000 sf of the BW Corridor’s 1.4 msf under construction is scheduled to deliver by year-end 2026. With the remaining completions slated for 2027, limited near-term deliveries should allow demand time to absorb existing vacant space and support further vacancy compression as future commitments translate into occupancy gains.
