Positive demand for Baltimore warehouse space since 2010 has pushed vacancy well below its historical average since 1990 of 11%. In fact, it dropped from 11.5% in ’09 to 8.5% in Q1, according to CoStar Portfolio Strategy’s Charlie Schwieger. Last year saw 2M SF of absorption, the highest since ’07. Now, 2014 wants its moment in the spotlight. Expect 3.6M SF of absorption (boosted by the Q3 deliveries of both Amazon and Clorox’s build-to-suits), he tells us.
Demand could accelerate more if the Port of Baltimore can increase its East Coast container market share (now 3.8%), and it’s poised to do so, Charlie says. It’s one of only two East Coast ports with a 50-foot-deep channel to receive the larger ships the Panama Canal soon will accommodate, and Seagirt Marine Terminal is expanding while the port is working on rail connections to allow double-stack trains that can then set out for the Midwest.
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