After several consecutive quarters of tepid leasing activity, the warehouse/industrial sector has stormed back both nationally and in the greater Maryland region. Q2 reports from Cushman & Wakefield, CBRE, and JLL cite increased absorption and leasing activity, particularly in newer facilities that can accommodate automation, AI systems and other modern operational needs.
Matt Laraway, Senior Vice President for CBRE, represents multiple owner/landlords in the region and expects 2026 to finish as among the most robust years since the pandemic-fueled euphoria ending in 2022. He cites e-commerce, third-party logistics companies and food and beverage sectors as the primary drivers.
“Leasing activity is among the strongest we have experienced in recent quarters,” Laraway said. “The data is somewhat skewed by several large lease renewals, but companies choosing to maintain their presence in existing buildings is still a positive sign for the market.”
The nearly 900,000 square feet vacated by Rite Aid in Harford County pushed Q2 absorption into negative territory. Despite that setback, leasing activity has increased across many, though not all, submarkets, driven by commodities, building supplies, e-commerce, third-party logistics and companies serving the data center industry.
CBRE research reinforces that momentum. Leasing transaction volume increased 46% year over year in Q2, while the number of transactions was up 52% in the Baltimore metropolitan area. Laraway said the upward trend continued in Q3, with nearly 2.3 million square feet leased.
He cautions that “not all submarkets are experiencing the same level of activity or success,” but the greater Baltimore metropolitan area “remains in a highly favorable position based on its strategic Mid-Atlantic positioning, access to major population centers, and availability of highly-skilled labor.”
He adds that “a few industrial buildings have sat empty for several years” but is optimistic that companies will “find their way to those assets soon” due to the current supply-constrained market.”
Jim Lighthizer, Principal and Managing Partner, Chesapeake Real Estate Group, says the collapse of the Francis Scott Key Bridge and its negative impact on highway traffic, continuing construction of the Baltimore Beltway and even last year’s government downsizing spurred by DOGE, has “taken a bite out of industrial leasing momentum.”
“It is a tale of different markets,” he explained, “with various factors influencing the interest end-users have in various geographic areas of the region and buildings. Not everyone is enjoying the fruits of the recent leasing activity.”
On the positive side, Chesapeake Real Estate Group is experiencing build-to-suit activity with “the execution of a deal with a significant user of space expected to close shortly,” Lighthizer said. “That deal, and others like it, is providing me with optimism for the future.”
In this article: CBRE, Chesapeake Real Estate Group, Cushman & Wakefield, JLL