Commercial Real Estate in Baltimore: A Great Investment
Baltimore, Maryland is a hotspot for commercial real estate investment, and for good reason. Known for its rich history, vibrant cultural scene, and strategic location, the city offers numerous opportunities for investors looking to expand their portfolios. Here’s why buying commercial real estate in Baltimore is a great investment.
1. Economic Growth and Stability
Baltimore has demonstrated strong economic growth and stability over recent years. According to the Bureau of Economic Analysis, Baltimore’s GDP grew by 2.1% in 2022, outpacing the national average of 1.9%. It then grew an additional 2.5% in 2023. The city’s economy is bolstered by diverse industries, including healthcare, education, finance, and technology. The presence of renowned institutions like Johns Hopkins University and Johns Hopkins Hospital drives significant economic activity and attracts a skilled workforce.
2. Strategic Location
Baltimore’s strategic location on the East Coast makes it an attractive destination for businesses. The city is within close proximity to major markets such as Washington, D.C., Philadelphia, and New York City. Additionally, the Port of Baltimore is one of the busiest ports in the United States, facilitating robust trade and logistics activities. While it is going through a hard time in the wake of the Key Bridge tragedy, the Port’s business is on its way to a robust recovery. According to the Maryland Port Administration, in 2023 the Port of Baltimore unloaded a record-setting 52.3 million tons of cargo worth $80.8 billion, highlighting its significance in global trade.
3. Growing Tech Sector
Baltimore’s tech sector is experiencing rapid growth, making it an attractive destination for tech companies and startups. Baltimore recently ranked 5th on Forbes’ List of Rising Cities for Startups. The city is home to several innovation hubs, incubators, and co-working spaces that foster a thriving tech ecosystem. According to the Baltimore Development Corporation, the city saw a 19% increase in tech jobs between 2017 and 2022. This growth is attracting a young, talented workforce, further driving demand for commercial real estate.
4. Supportive Business Environment
Baltimore offers a supportive business environment with various incentives for commercial real estate investors. The city provides tax credits, grants, and financing programs to encourage development and revitalization. For instance, the Enterprise Zone Program offers tax incentives to businesses that locate in designated areas, promoting investment in underdeveloped neighborhoods. Additionally, Baltimore’s Opportunity Zones provide significant tax benefits for investors, enhancing the appeal of commercial real estate in these areas.
5. Cultural and Lifestyle Attractions
Baltimore’s vibrant cultural scene and quality of life make it an attractive place to live and work. The city boasts numerous cultural attractions, including the National Aquarium, Baltimore Museum of Art, and historic Inner Harbor. According to a 2023 survey by the U.S. News & World Report, Baltimore was ranked 84th among the top 150 best places to live in the United States. It was one of only two cities in Maryland to make the list, and was by far the best ranked. This high quality of life attracts businesses and talent, increasing the demand for commercial properties.
6. Infrastructure and Transportation
Baltimore has a well-developed infrastructure and transportation network, facilitating easy access and mobility. The city is served by major highways, including I-95 and I-83, and has an extensive public transportation system. Additionally, Baltimore/Washington International Thurgood Marshall Airport (BWI) provides convenient air travel options, enhancing the city’s connectivity. According to the Maryland Department of Transportation, BWI handled over 27 million passengers in 2022, underscoring its role as a major transportation hub.
With its robust economy, strategic location, affordable real estate prices, growing tech sector, supportive business environment, vibrant cultural scene, and excellent infrastructure, Baltimore stands out as a prime destination for commercial real estate investment. Investors looking to capitalize on these opportunities should consider commercial real estate in Baltimore as a key market for their portfolios.
If you are interested in a free broker opinion of value or just learning more about investing in commercial real estate in Maryland, Virginia, or Washington DC, please contact us. Avenue Real Estate is a leading full service commercial brokerage in the Baltimore and Washington DC areas and we would love to help you explore your options and make informed decisions about commercial real estate investments.