CBRE

FIGURES|BALTIMOREINDUSTRIAL|Q42025

BrightSpotsRemainDespiteSlowFourth

Quarter

r8.3%

VacancyRate

Note:Arrowsindicatechangefrompreviousquarter.

(442,547)

SFNetAbsorption

1.0M

SFUnderConstruction

$10.94

AverageNNNAskingRate

FIGURE1:HistoricalSupply&DemandDynamics

Vacancy(%)

12

10

8

6

4

2

0

EconomicconditionsduringtheyearhaveaffectedmultipleindustrialmarketsacrosstheUnited

MSF

10

9

8

7

6

5

States.Toconclude2025,activityslowedintheBaltimoreindustrialmarketfollowingastrongthirdquarter.Evenso,therearemultiplefundamentalsshowingreasonsforoptimisminthemarket.

Just2.2millionsq.ft.ofspacewasleasedduringthefourthquarter,markinga18%declinefromthepost-peakquarterlyaverage.Further,themarketrecordedonlythreedealsexceeding100,000sq.ft.,downfromseveninthethirdquarter.Despitethedropinleasing,askingratescontinuetohover

aroundhistorichighsandmarketinterestremainsstrong.Therearecurrentlymorethan100tenantsactivelyseekingspaceacrossthemetropolitanarea,includingmultiplelookingatbuilt-to-suit

opportunities.

4

3

2

1

0

Themarketrecorded442,000sq.ft.ofnegativenetabsorptionduringthefourthquarter.However,annualabsorptioncontinuesa10+yearstreakofoccupancygain,with+398,000sq.ft.ofpositive

absorptionin2025.Vacancyincreased70basispoints(bps)overthepriorquarterto8.3%,markingthehighestvacancyrateonrecordsinceQ32016.Thisincreaseislargelyduetovacantdeliveries,as1.2millionsq.ft.ofindustrialconstructiondeliveredduringthefourthquarter,mostofwhichwas

20152016201720182019202020212022202320242025

vacant.Year-over-year,deliveriesaredownabout50%,andthepipelinehasonly1.0millionsq.ft.

Deliveries(L)NetAbsorption(L)Vacancy(R)

underconstruction.

1CBRERESEARCH?2025CBRE,INC.

FIGURES|BALTIMOREINDUSTRIAL|Q42025

2CBRERESEARCH?2025CBRE,INC.

LeasingSnapshot

ActivityacrosstheBaltimoremetrowasmoderateduring2025,

withtenantssigningleasestotaling10.6millionsq.ft.Duringthefourthquarter,newleasesdominatedrenewals,withabout77%ofleasedspacecomingfromanewdeal.The

Baltimore/WashingtonCorridorsawthemostspaceleasedat731,000sq.ft.across19deals.

3PL

Themostnotabledealofthequartercamefromthethird-partylogisticscompanyMakoFreight,whichleasedtheentiretyof

500HickoryDrive,oneofthelargestavailabilitiesinthe

market.AnotherbulkdealwassignedbyLineageLogistics,

whichabsorbedabout248,000sq.ft.at5300HolabirdAvenue.3PLswerethemostactivesectorthisquarter,accountingfor48%ofleasedspace.Further,thesectorwasthemostactive

thisyear,signingleasestotaling2.6millionsq.ft.

Wholesale&Retail

Wholesaleandretailtenantswerethesecond-mostactive

duringthefourthquarter,drivenbyThumaRetailfullyleasing8416KelsoDrive.Thetenantoccupiedoneoftheonlyavailablespacesover200,000sq.ft.inBaltimoreCountyEast.Inline

withthefourthquarter,wholesale&retailtenantswerethe

secondmostactivesectorin2025,accountingfor1.9millionsq.ft.ofactivity.

FIGURE2:SelectNotableQ42025LeaseTransactions

Tenant

Industry

Address

Submarket

LeaseType

SF

MakoFreight

3PL

500HickoryDr

Harford/CecilCounty

Sublease

470,019

ThumaRetail

Wholesale&Retail

8416KelsoDr

BaltimoreCountyEast

NewLease

275,744

LineageLogistics

3PL

5300HolabirdAve

BaltimoreCity

NewLease

247,860

NorthropGrummanSystems

Aerospace&Defense

1745WNurseryRd

Baltimore/WashingtonCorridor

Renewal

82,893

HollyPoultry

Food&Beverage

1020Airport100Way

Baltimore/WashingtonCorridor

NewLease

80,000

RyderLastMile

3PL

6930SanTomasRd

Baltimore/WashingtonCorridor

Renewal

78,871

EventproServices

BusinessServices

6161RobinwoodRd

Baltimore/WashingtonCorridor

NewLease

51,120

SpeedXpress

3PL

8301SherwickCt

Baltimore/WashingtonCorridor

NewLease

50,000

4%3%4%

6%8%

12%

45%

18%

Source:CBRE

FIGURE3:Q42025GrossLeasingbySector(SharebySF)

3PL

Wholesale&Retail

Aerospace&Defense

Manufacturer

BusinessServices

Food&Beverage

Auto,Tires,&Parts

Other

9%

6%23%

6%

12%

17%

15%

12%

FIGURE4:Q42025GrossLeasingbySector(Shareby#ofLeases)

3PL

Wholesale&Retail

Aerospace&Defense

Manufacturer

BusinessServices

Food&Beverage

Auto,Tires,&Parts

Other

Source:CBRESource:CBRE

FIGURES|BALTIMOREINDUSTRIAL|Q42025

3CBRERESEARCH?2025CBRE,INC.

DevelopmentActivity

DevelopmentactivityintheBaltimoreindustrialmarkethasslowedincomparisonto2024,butthefourthquartersawseveralnotablepropertiesdeliver.

?Thelargestdeliveryofthequarterwaslocatedat1203

TechnologyDrive,withJohnsonDevelopmentAssociatesfinishingits255,000sq.ft.warehouse.

?KnottRealtyGroupcompletedconstructionon9107and9115YellowBrickRoad;together,thewarehousescombinefor

275,000sq.ft.,allofwhichisvacant.

?TheBaltimore/WashingtonCorridorsawtwodeliveries,withBrookfieldPropertiesdeliveringa220,000sq.ft.warehouseat

7559OldJessupRoad,andRockefellerGroupfinishingthe

136,500sq.ft.propertyat1305FurnaceRoad.

Altogether,sevenpropertiesdeliveredinthefourthquarter,only

oneofwhichwaspreoccupied.Intotal,2.2millionsq.ft.ofindustrialspacewascompletedacross13propertiesin2025.Onlyfive

propertiesremaininthepipeline,butdevelopmentisexpectedtopickbackupin2026.

Pricing

IndustrialaskingratesinBaltimoresawlittlechangequarter-over-quarter,averaging$10.94persq.ft.perannumonatriple-netbasis(NNN),withwarehouserentssittingat$10.84NNN.Acrossthe

UnitedStates,industrialaskingrentgrowthhasplateaued,withmanymarketsshowingadownwardtrajectory.Thatsaid,overallratesareinlinewiththehistorichighsreachedin2024.

FIGURE5:SelectDevelopmentProjects

Address

Submarket

SF

ExpectedDelivery

Developer(s)

5001WashingtonBlvd

Baltimore/WashingtonCorridor

260,000

Sep-26

ClarionPartners

MDRt3Industrial

Baltimore/WashingtonCorridor

216,989|170,474

Sep-26

HanoverCompany

1621ClarkRd

Harford/Cecil

168,000

May-26

ChesapeakeRealEstateGroup/Sagard

TradepointAtlantic–JDFields

BaltimoreCountyEast

139,770

Oct-26

TradepointAtlantic

TradepointAtlantic–McClaren

BaltimoreCountyEast

49,920

May-26

TradepointAtlantic

Source:CBRE

FIGURE6:HistoricalRentGrowth($/SF)

12

10

8

6

4

2

-

WarehouseAskingRents($/SF)

12

10

8

6

4

2

-

OverallAskingRents($/SF)

Source:CBRE

FIGURES|BALTIMOREINDUSTRIAL|Q42025

4CBRERESEARCH?2025CBRE,INC.

EconomicOutlook

TheU.S.economyissendingsomemixedsignals.Financialmarketsarefocusedontheupside,particularlyAI’ssizablecontributionto

growthinrecentquarters.Someindicatorsofbusinessactivity,suchascapitalgoodsorders,areimproving,andstrengtheningcredit

marketsarehelpingtousherrealestateintoanewcycle.

Thepicturegetsmoremelancholywhenlookingathouseholds.

Consumerconfidenceremainsweak,withspendingreportedly

drivenbyasmallersegmentofaffluenthouseholds.ThismosaicofdatasuggeststhatannualaverageGDPgrowthwillbesteadyin2026,at2%,butatouchsofterthanin2025.Akeycatalystisa

softerlabormarket,ascompaniesare‘slowtohire,slowtofire’—atrendthatislikelytolastafewquarters.Aconsequenceofthis

outlookissofterinflationandlong-termbondyieldstrendingjustbelow4%byH22026.

EducationandHealthServicesLeisureandHospitality FinancialActivitiesTotalNonfarm

ProfessionalandBusinessServices

Mining,Logging,andConstructionGovernment

Trade,Transportation,andUtilitiesOtherServicesManufacturingInformation

FIGURE7:EmploymentGrowthbyIndustry,12-MonthPercentChange

Source:BLS-6%-4%-2%0%2%4%6%

FIGURE8:UnemploymentRate

FIGURE9:ConsumerPriceIndex,12-MonthPercentChange

9%8%7%6%5%4%3%2%1%0%

10%9%8%7%6%5%4%3%2%1%0%

BaltimoreMetroUnitedStates

BaltimoreUnitedStates

Source:BLS

Source:BLS

FIGURES|BALTIMOREINDUSTRIAL|Q42025

5CBRERESEARCH?2025CBRE,INC.

FIGURE10:KeyMarketStatistics

Warehouse

Inventory(SF)

OverallVacancyQ42025Net2025Net

Rate(%)Absorption(SF)Absorption(SF)

NNNAsking

Rent($/SF)

UnderConstruction(SF)

Annapolis

262,548

1.2

(3,102)

(2)

16.00

-

BaltimoreCity

28,797,171

7.2

181,600

(360,568)

9.32

-

BaltimoreCountyEast

31,132,843

7.2

178,543

270,222

10.57

189,690

BaltimoreSouthwest

7,405,788

13.2

118,598

343,710

10.38

260,000

Balt/WashingtonCorridor

51,098,484

11.7

(1,066,072)

(1,198,437)

12.94

387,463

Harford/CecilCounty

40,688,319

7.8

12,781

1,105,580

8.51

168,000

HuntValley/Towson

2,892,004

7.2

81,000

81,699

11.52

-

OwingsMills/ReisterstownRd

706,368

1.5

-

(10,900)

10.95

-

Total

162,983,525

9.0

(496,652)

231,304

10.84

1,005,153

Flex

Inventory(SF)

OverallVacancyRate(%)

Q42025Net

Absorption(SF)

2025Net

Absorption(SF)

NNNAsking

Rent($/SF)

UnderConstruction(SF)

Annapolis

1,144,477

3.3

-

(1,034)

17.85

-

BaltimoreCity

2,606,021

0.6

-

19,129

10.84

-

BaltimoreCountyEast

2,891,872

6.3

22,000

49,777

11.26

-

BaltimoreSouthwest

3,507,704

9.3

-

(18,687)

11.65

-

Balt/WashingtonCorridor

14,500,063

4.4

24,220

104,525

13.58

-

Harford/CecilCounty

1,798,042

4.2

7,885

7,885

11.54

-

HuntValley/Towson

3,555,290

2.6

-

5,650

11.73

-

OwingsMills/ReisterstownRd

1,930,397

9.9

-

-

11.57

-

Total

31,933,866

4.9

54,105

167,245

12.63

-

Source:CBRE

FIGURES|BALTIMOREINDUSTRIAL|Q42025

FIGURE10(Continued):KeyMarketStatistics

Overall

Inventory(SF)

Overall

VacancyRate(%)

Q42025Net

Absorption(SF)

2025NetAbsorption(SF)

NNNAsking

Rent($/SF)

UnderConstruction(SF)

Annapolis

1,407,025

2.9

(3,102)

(1,036)

17.73

-

BaltimoreCity

31,403,192

6.6

181,600

(341,439)

9.33

-

BaltimoreCountyEast

34,024,715

7.2

200,543

319,999

10.61

189,690

BaltimoreSouthwest

10,913,492

12.0

118,598

325,023

10.74

260,000

Balt/WashingtonCorridor

65,598,5