
Local Warehouse Market Now on the Move
In the fourth quarter, positive net absorption of warehouse space in the Baltimore area totaled 622,663 square feet (sf). The largest increases were experienced in the Harford/Cecil submarket (+471,626 sf), Baltimore City (+276,024 sf), and the BW Corridor (+274,489 sf). Several submarkets experienced negative net absorption for the quarter including Baltimore County East (-243,862 sf.) and Woodlawn/Catonsville (-47,292 sf). In 2011, net absorption of warehouse space in the Baltimore region totaled -89,555 sf, which means that the fourth quarter represented a radical departure from trend. The direct vacancy rate for the regional warehouse market stood at 9.7 percent in the fourth quarter, up from 9.4 percent in the third quarter, but down from 10.1 percent the same time last year.
Trends were reversed in the flex industrial market. The flex industrial market in the Baltimore area posted quarterly net absorption of -32,475 sf. For the year, net absorption totaled 90,583 sf. Three markets stood out with respect to positive net absorption during the year's final quarter: Annapolis (39,005 sf.), Arbutus (33,948 sf), and Harford/Cecil (26,192 sf). However, the performance of these submarkets was more than offset by negative net absorption in Baltimore City (-73,862 sf) and the BW Corridor (-32,447 sf.). The Baltimore area flex industrial market direct vacancy rate for the fourth quarter was 10.2 percent, unchanged from both the previous quarter and the same time one year ago.

Notable Transactions
Flex Lease
| Location | Submarket | Tenant | Amount Leased SF |
| 7125 Columbia Gateway Drive | BW Corridor | GSA | 48,241 sf |
| 6905 San Tomas Road | BW Corridor | Unknown | 35,682 sf |
| 11100 Gilroy Road | I-83 Corridor | SL Distribution | 22,986 sf |
Flex Sale
| Location | Submarket | Price | PSF | Building Size SF |
| 7451 Coca Cola Drive | BW Corridor | $1,855,827 | $36.50 | 60,850 sf |
| 9691 Gerwig Lane (condo) | BW Corridor | $530,000 | $143.24 | 3,700 sf |
Warehouse Lease
| Location | Submarket | Tenant | Amount Leased SF |
| 4 Center Drive | Cecil County | GSA | 76,800 sf |
| 4611 Mercedes Drive | Harford/Cecil County | Sephora | 70,144 sf |
| 8100 Dorsey Run Road | BW Corridor | United Electric Supply | 79,000 sf (e) |
| 4711 Hollins Ferry Road | Arbutus | E.I.S. Group, Inc. | 30,149 sf |
Warehouse Sale
| Location | Submarket | Price | PSF | Building Size SF |
| 7481 Coca Cola Drive | BW Corridor | $40,644,173 | $89.03 | 456,500 sf |
| 8704 NW Bollman Place | BW Corridor | $16,860,000 | $98.46 | 171,138 sf |
| 1025 Airport 100 Way | BW Corridor | $14,200,000 | $105.65 | 134,406 sf |
(r) Renewal
(e) Renewal & Expansion
* All information furnished regarding property for sale, rent, exchange or financing is from sources deemed reliable. No representation is made as to the accuracy thereof and all such information is submitted subject to errors, omissions, or changes in conditions, prior sale, lease or withdrawal without notice. All information should be verified to the satisfaction of the person relying thereon. Portions of the base statistics are from CoStar Property data. Data as of 12/2011. | Number of Buildings | 4,870 |
| Market Size | 242,542,712 sf |
| Change Since Last | |||
| Current | QTR | YR | |
| Direct Vacancy | 9.80% | ||
| Vacancy W/ Sublet | 10.19% | ||
| Net Absorption | 590,188 sf | ||
| Avg. Asking Rate | $5.73 | ||
Flex
Above: Baltimore City and the BW Corridor saw the substantial decreases in absorption while Baltimore County East and Harford/Cecil County remained virtually unchanged.
Warehouse
Above:The Harford/Cecil County submarket saw a positive absorption of 471,626 sf, more than double the absorption rates of Baltimore City and the BW Corridor combined..
Historical Vacancy Rates
Click on Graphs to Enlarge
Above:Although the overalll vacancy rate dipped to 10.19 percent, the availability rate remains high at 14.72 percent for the area. Though this number has improved since mid-year 2010 (18 percent), it indicates there are still a high level of short term tenancies in the market.