Baltimore I-95 South

Industrial Market Review

Current Market Trends
Rental
Rates

Leasing
Activity

Tenant
Concessions

Rental rates are up,
particularly in Class A
Office/Warehouse &
Bulk product. Class
B rates are poised to
increase in 2014.
Overall, flex rates
have been relatively
flat.
Though activity was
likely mired by
adverse weather
experienced
throughout the first
quarter, leasing
fundamentals
continue to improve.
Tenant concessions
remained relatively
flat during the first
quarter and are
expected to diminish
throughout the year
as the market
continues to recover.

First Quarter 2014

Baltimore Metropolitan Overview
The Greater Baltimore Metropolitan area
has emerged as one of the strongest
second-tier markets in the United States.
While Baltimore is a stand-alone
metropolitan statistical area (MSA) with
over 2.7 million residents, it is also part
of the Washington-Baltimore
consolidated statistical area (CSA) with a
total population over 8 million. The
Greater Baltimore region comprises
Anne Arundel, Baltimore, Carroll, Cecil,
Harford, and Howard Counties as well as
Baltimore City. As of March 2014, the
Baltimore metropolitan area’s
unemployment rate was 6.3% compared
to the national unemployment rate of
6.7%.

Baltimore I-95 South Industrial Market
Prince George’s County contributed the
majority of the 1.3 million square feet of
negative absorption that raised the I-95
South industrial vacancy rate to 13.10%.
Leasing velocity suffered during the
winter months due to historically bad
weather, but should rebound throughout
the rest of 2014.
Rental rates increased in the first quarter
despite the slowdown in leasing velocity.
Market performance in 2012 and 2013
have created a more favorable landlord
environment, making asking rents
immune to the temporary slowdown in
tenant activity.

Q1 2014 Vacancy Rates &
Average Quoted Rental Rates
Vacancy Rate
Product Type

# Of Buildings

SF

SF Vacant

Vacancy Rate

Flex

320

13,248,985

1,570,765

11.86%

Office Warehouse

453

31,001,123

4,196,159

13.54%

Bulk

189

31,756,320

3,684,504

11.60%

I-95 South Totals

962

76,006,428

9,451,428

12.44%

By Submarket

# Of Buildings

SF

SF Vacant

Vacancy Rate

550

51,231,914

5,715,127

11.16%

Corridor
Southeast

173

7,409,408

828,125

11.18%

Southwest

239

17,364,225

2,477,642

14.27%

PG County

455

30,365,306

4,484,457

14.77%

I-95 South Totals

962

76,005,547

9,020,894

11.87%

Flex

O/W

Average Quoted Rental Rate
By Submarket

Bulk

Average

Corridor

$7.45

$5.65

$6.17

$6.17

Southeast

$6.24

$7.92

$4.13

$5.57

Southwest

$6.71

$6.04

$4.23

$5.31

PG County

$8.48

$6.63

$5.42

$6.91

I-95 South Averages

$7.83

$6.24

$5.46

$6.34
cassidyturley.com | 1

BALTIMORE I-95 SOUTH • INDUSTRIAL • FIRST QUARTER 2014

Behind the Numbers

For more information, contact one of
our Industrial Brokers:

15.10%

Vacancy Rate of 20’-23’ clear buildings in the BW Corridor submarket
at the end of Q1 2014.

9.20%

Vacancy Rate of 24’-28’ clear buildings in the BW Corridor submarket
at the end of Q1 2014.

Cassidy Turley
100 Light Street
Suite 1400
Baltimore, MD 21202
Tel: 410.752.4285
Fax: 410.576.9031

Notable Q1 2014 Lease Transactions

Property

7460 New Ridge Road
Hanover, MD

3051 Washington Boulevard
Baltimore, MD

Size

30,000 SF

60,000 SF

Term

10 Years

3 Years

Yr. 1 Rent/Esc.

$8.50 / 2.5%

$4.85 / 3.0%

TI PSF

$11.00 from “cold, dark shell”

Minimal

Tenant

Kawneer

Nexius

Landlord

Liberty Property Trust

FRP Development

Type

New

New

www.cassidyturley.com

Notable Q1 2014 Sales Transactions

Property

1811 Cabin Branch Drive
Landover, MD

1701 Brightseat Road
Landover, MD

Size

360,550 SF

216,000 SF

Seller

Oakmont Industrial Group

Finmarc

Buyer

TIAA

Salus Property Investments

Price

+/-$34,250,000

$31,650,000

About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With
headquarters in Washington, DC, the company represents a wide range of clients—from small businesses to Fortune 500 companies, from local
non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet
on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley
serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant
representation, corporate services, project leasing, property management, project and development services, and research and consulting.
Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial
real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.
cassidyturley.com | 2

Cassidy Turley Industrial Market Statistical Overview
January 1, 2014 - March 31, 2014
Submarket

Cassidy Turley Classification

BALTIMORE I-95 SOUTH • INDUSTRIAL • FIRST QUARTER 2014
Number of Buildings

Total Size (SF)

Total Available (SF)

Vacancy Rate

QTR Absorption (SF)

Corridor
Airport 100

3

737,600

0

0.00%

0

Arundel Crossing

11

1,706,054

67,070

3.93%

0

Baltimore Commons

33

3,748,920

580,704

15.49%

2,400

Baymeadow

17

2,073,594

87,285

4.21%

-24,000

Brandon Woods

17

1,973,886

46,956

2.38%

3,935

BWI Commerce Park

14

511,658

39,300

7.68%

-5,700

BWIP

96

7,709,179

823,480

10.68%

-176,533

Columbia Gateway

4

2,168,713

356,891

16.46%

0

Corridor Industrial

18

2,050,248

90,174

4.40%

0

Cromwell Business Park

14

707,632

67,679

9.56%

6,020

Guilford Industrial

34

2,681,778

436,290

16.27%

70,445

Harwood Industrial Park

9

159,645

4,900

3.07%

-3,400

Hillside/Preston Gateway

8

1,566,168

26,208

1.67%

0

Industrial Trade Center

14

669,887

112,790

16.84%

-37,400

Junction Business Park

18

1,205,248

155,826

12.93%

0

Marley Neck

8

1,755,835

230,398

13.12%

0

MD Wholesale Food Center

17

2,979,319

853,842

28.66%

0

Meadowridge

13

1,707,670

73,295

4.29%

20,654

Montevideo/Dorsey Run

18

1,830,248

316,645

17.30%

-15,495
0

Oakland Ridge

17

961,632

25,409

2.64%

Park 100

5

484,450

224,000

46.24%

0

Parkway Industrial

24

1,397,839

130,995

9.37%

-21,348

Patapsco Valley

7

1,195,772

180,229

15.07%

0

Race Road

4

277,855

40,716

14.65%

-14,064

Route 1 Corridor

33

1,633,889

69,165

4.23%

3,600

Route 1 Laurel

21

1,346,020

99,640

7.40%

14,067

Route 100

30

2,726,585

404,413

14.83%

22,666

Sieling Industrial

27

1,265,308

154,783

12.23%

19,014

Troy Hill

16

1,999,180

184,805

9.24%

-33,622

51,231,812

5,883,888

11.48%

-168,761

Total

550

Southeast
Annapolis Industrial

23

778,629

71,622

9.20%

-6,894

Brooklyn

19

1,717,159

380,291

22.15%

-68,400

I-97 Industrial

56

1,756,607

87,480

4.98%

12,030

Route 2 Industrial

34

1,078,403

107,594

9.98%

-31,914

Route 3 Industrial

21

594,486

23,429

3.94%

21,963

Route 170

17

1,360,024

458,651

33.72%

-227,727

Telegraph Rd Business Pk

3

125,083

15,000

11.99%

-15,000

173

7,410,391

1,144,067

15.44%

-315,942

69

6,385,507

1,016,277

15.92%

-61,952

Total
Southwest
Arbutus Industrial

Total

Baltimore City Southwest

35

2,117,863

360,770

17.03%

2,500

Camden Industrial Park

24

2,908,697

451,629

15.53%

26,295

Caton Research Center

41

1,709,154

228,515

13.37%

8,042

DeSoto

25

1,448,506

111,850

7.72%

-47,250

Hammonds Ferry

43

2,560,612

168,432

6.58%

111,534

West Port, Camden

2

233,886

86,000

36.77%

15,000

17,364,225

2,423,473

13.96%

54,169

239

cassidyturley.com | 3

Cassidy Turley Industrial Market Statistical Overview
January 1, 2014 - March 31, 2014
Submarket

Cassidy Turley Classification

BALTIMORE I-95 SOUTH • INDUSTRIAL • FIRST QUARTER 2014
Number of Buildings

Total Size (SF)

Total Available (SF)

Vacancy Rate

QTR Absorption (SF)

PG County
Beltsville

86

4,300,031

642,600

14.94%

29,923

Bowie

57

4,386,656

604,943

13.79%

-147,508

Branch Ave Corridor

31

1,528,440

463,115

30.30%

-245,663

Brandywine/PG South

7

1,095,228

166,500

15.20%

-150,300

Capitol Heights

37

2,267,872

349,914

15.43%

-100,882

Cheverly/Hyattsville

26

989,789

101,194

10.22%

15,852

Greenbelt

4

348,842

138,065

39.58%

-52,875

Landover/Largo

81

8,668,183

1,014,877

11.71%

-132,044

Lanham

37

2,447,813

342,384

13.99%

-124,434

Laurel

32

1,556,111

239,182

15.37%

31,394

NatHbr/OxnHill/FtWash

7

127,690

15,400

12.06%

-1,180

Penn Ave Corridor

36

1,830,010

350,100

19.13%

14,310

Takoma Pk/College Pk

10

715,618

48,833

6.82%

497

Upper Marlboro
Total
Grand Total

4
455
1,417

103,023

7,350

7.13%

-1,150

30,365,306

4,484,457

14.77%

-864,060

106,371,734

13,935,885

13.10%

-1,294,594

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