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Net Absorption
(all product types)
Thousands
Vacancy Rate
(all product types)
13.0% 12.0% 11.0% 10.0% 9.0% 8.0% Q3 2009 Q3 2010 Q3 2011 Q4 2012 Q3 2013
market indicators
Q2 2013 VACANCY NET ABSORPTION construction rental rate Q3 2013
www.colliers.com/greaterbaltimore
research & forecast report | Q3 2013 | INDUSTRIAL use | baltimore metro area
definitions
> Catalogued Inventory: > Market Area: > Vacancy Rate: > Net Absorption: > Average Asking Rent: Class A & B flex buildings over 10,000 sf and distribution warehouse buildings over 100,000 sf. This inventory includes a total of 1,349 buildings consisting of almost 139,000,000 square feet of space Baltimore City and the surrounding counties of Anne Arundel, Howard, Baltimore, Cecil, Harford and Carroll. Total vacant space divided by the total inventory. The difference in physically occupied space within a given time period. Weighted average rent per square foot, triple net
LEASING ACTIVITY
Property Address 7855 Rappahannock Ave 8411 Kelso Drive 1467 Perryman Road 9060 Junction Drive 4801 Hollins Ferry Road Lease Date Aug-13 Aug-13 Sep-13 Sep-13 Jul-13 Lease SF 61,000 sf 270,000 sf 945,742 sf 32,935 sf 76,742 sf Lessee Bens Beauty Supply Distribution RPM Warehousing & Transportation Clorox Company Peerless Specialty Flooring Global Experience Specialists, Inc Rate $4.00 est $5.25 est n/a $4.75 est $4.75 est Type Industrial Industrial Industrial Industrial Industrial Submarket Route 1 Corridor Baltimore County East Aberdeen Route 1 Corridor Arbutus
New Construction
Current 38,227 sf 58,994 sf 0 sf 0 sf 0 sf 0 sf Completed 0 sf 0 sf 51,120 sf 0 sf 0 sf 0 sf
Rental Rates
WH/Dist $4.57 NNN $6.42 NNN $5.18 NNN $4.67 NNN $3.94 NNN $3.59 NNN R&D/Flex $11.10 NNN $8.95 NNN $10.49 NNN $10.00 NNN $12.39 NNN $6.60 NNN
www.colliers.com/marketname
research & forecast report | Q3 2013 | INDUSTRIAL use | baltimore metro area
Submarkets
Howard County The industrial market in Howard County straddles I-95 and Route 1. Major employers include Best Buy and Verizon. The industrial market represents over 30,000,000 square feet of space. Vacancy rates stabilized this quarter at 12.7% with no new deliveries, and will likely trend down over the next several quarters. Recent transactions included Bens Beauty, which renewed for 61,000 sf in Jessup. Peerless Specialty Flooring signed a 32,934 sf lease at 9060 Junction Drive. Mias Beauty Supply renewed their lease at 7855 Rappahannock Avenue in Jessup for 65,000 sf. Anne Arundel County The industrial and flex market in Anne Arundel County is adjacent to Howard County and consists of over 23,600,000 square feet of space. Major employers include Fort George G. Meade, Under Armour and the National Security Agency. Vacancy rates rose to 10.9% from 9.2% as net absorption fell negative this quarter due in part to new construction deliveries. Liberty Property Trust announced they would break ground on two new Class A industrial buildings in Hanover that should be delivered by the end of 2013. Harford/Cecil counties The Harford and Cecil County submarket spans the I-95 & the Rt. 40 corridor up to the Delaware line and represents over 26,000,000 square feet of space. A few major employers in this market include General Electric, Bobs Discount Furniture, Clorox Sales, Rite Aid, Proctor & Gamble, as well as Restoration Hardware. Clorox announced they signed a 10 year lease for a 945,000 sf build-to-suit warehouse in Aberdeen that will be delivered next summer. 531 Chelsea Road, a 655,000 sf warehouse, is under construction with an anticipated delivery of summer 2014. Vacancy rates continue to trend downward ending at 4.1%, dramatically lower than the 13.4% vacancy at the end of 2011. Baltimore East This submarket encompasses the northeast and southeast portions of Baltimore City, as well as the eastern portion of Baltimore County, and contains over 24,600,000 square feet of industrial and flex space. Major industrial users for this area include Middle River Aircraft Systems, General Motors Allison Transmission, DAP Products, and W.R. Grace. Vacancy rates rose to 13.4%, but will likely stabilize there for the near future. RPM Warehousing & Transportation just leased 274,841 sf at 8411 Kelso Drive, and ETC Emerging Technology Center took 17,058 sf at 101 N. Haven Street. Baltimore Southwest The Southwest Baltimore submarket includes properties within the citys Central Business District, Midtown, as well as Woodlawn and Catonsville. This smaller submarket contains approximately 7,300,000 square feet of space. The expansion of the Port of Baltimore will likely have a positive effect for this submarket in 2013 as evidenced by the declining vacancy rate ending the quarter at 13%. Major industrial users include Veolia Transportation, Price Modern, Federal Express and UPS. The former GM site is being developed into a one million square foot warehouse that will very likely be occupied by Amazon. Prince Georges County Although Prince Georges county is not included in the Baltimore regional statistics, it remains an important and strategic location for the Baltimore area. PG County consists of 228 buildings and approximately 21,100,000 square feet of space. At the end of the 3rd quarter of 2013 more than 2,900,000 square feet of that space was vacant, equivalent to a vacancy rate of 14%.
1.12
Over
researcher: Nadia Kahler Vice President, Research & Transaction Management | Baltimore 100 North Charles Street Suite 1710 Baltimore, MD 21201
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