Strategies to Combat Rising Rents

Flex and warehouse rents in Greater Baltimore have risen faster than many contractors expect, and the surprise usually hits at lease renewal. For years, market rents increased by roughly 3% annually, which felt manageable for most. The problem is that fair market rents have moved higher, much faster.

Here is a simple example. A company leasing space at $6 per SF with a 3% annual increase would expect to be paying about $6.95 per SF after five years. Instead, many are now seeing market rents closer to $12 per SF. That is a $6 per SF increase overall. On a 5,000 SF space, that is an additional $30,000 per year. On a 15,000 SF space, it is $90,000 per year. That pain is real and it often shows up all at once.

What business owners need to know: start planning at least 12 months before your lease expires, reassess your space needs, understand true relocation costs, and test the market before renewal conversations begin.

Michael Singer is the Co-Founder of Singer Damareck Real Estate and a 25+ year veteran of tenant representation. He advises business owners and C-suite executives throughout the greater Baltimore metropolitan area on property strategy and negotiation, with a singular focus on protecting tenant interests. Michael can be reached at mike@singerdamareck.com