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BALTIMORE INDUSTRIAL
Economy
Economic Indicators
Q3 14
Q3 15
Baltimore Employment
1.35M
1.38M
Baltimore Unemployment
6.9%
5.5%
U.S. Unemployment
5.9%
5.1%
Q3 14
Q3 15
Overall Vacancy
8.3%
8.3%
Net Absorption
2.2M
1.3M
Under Construction
2.3M
995K
$5.30
$5.40
12-Month
Forecast
Market Indicators
12-Month
Forecast
2012
2013
Net Absorption, SF
2014
$5.40
$5.30
$5.20
$5.10
$5.00
$4.90
$4.80
$4.70
$4.60
$4.50
Q3 2015
Overall Vacancy
Outlook
12%
10%
8%
6%
4%
2%
0%
2011
2012
2013
2014
Q3
2015
MARKETBEAT
12.0%
overall vacancy rate, which was 0.7 pp lower from the same
10.0%
period last year, at 9.8%. The Corridor had the strongest quarter
8.0%
6.0%
4.0%
2.0%
601,664 sf. At 7.6%, the I-95 North Corridor has experienced the
0.0%
2011
2012
2013
2014
Q3 2015
Flex
Warehouse/Distribution
the market resulted in positive absorption of 726,612 sf year-todate. Eddie Mercer moved from Frederick to 105,000 sf at 4501
Curtis Avenue and Canusa Hershman Recycling occupied
255,000 sf at 8203 Fischer Road. Yet, tenant downsizing such as
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
Baltimore-Washington
Corridor
Flex
Beltway Submarket
Warehouse/Distribution
Q3 marked the slowest quarter of new leasing activity year-todate. At 1.7 msf, activity was 22.2% lower than the previous
quarter. Nearly 75% of all Q3 transactions occurred in the
Baltimore-Washington Corridor due to larger than average
transactions. Woodgrain Millwork inked a 180,000-sf deal at
2000 Washington Boulevard and FedEx followed suit with a
120,000-sf short-term lease at the same location. AEXGroup,
Inc. also signed a 112,000-sf deal at 7951 Oceano Drive. At
$4.75 psf, the Baltimore industrial W/D sector direct average
asking rent increased 3.0% from Q3 2014; marking three years
of consecutive year-over-year growth. The Baltimore-Washington
Corridor W/D direct average asking rental rate experienced the
largest increase of 5.7% to end the quarter at $5.36 psf.
6,000,000
4,000,000
2,000,000
0
2011
2012
2013
Leasing Activity
2014
Sales Activity
2015 YTD
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MARKETBEAT
SUBMARKET
Howard County
BALTIMORE-WASHINGTON
CORRIDOR
Harford County
Cecil County
INVENTORY
OVERALL
VACANCY
RATE
YTD LEASING
ACTIVITY
YTD USER
SALES
ACTIVITY
UNDER
CONSTRUCTION
YTD
CONSTRUCTION
COMPLETIONS
YTD DIRECT
NET
ABSORPTION
YTD OVERALL
NET
ABSORPTION
DIRECT
WEIGHTED
AVERAGE NET
RENTAL RATE
Flex
7,127,497
10.2%
305,226
22,770
(184,695)
(192,500)
$11.56
W/D
29,695,883
10.3%
1,111,735
184,491
652,741
652,741
$5.21
Flex
9,420,551
10.6%
281,510
(48,400)
(57,225)
$12.48
W/D
21,420,249
10.2%
357,967
150,012
138,178
46,787
46,787
$6.22
Flex
3,128,135
15.7%
141,635
76,729
62,585
69,185
$6.08
W/D
20,382,930
7.4%
832,100
285,000
82,676
82,676
$4.37
Flex
19,676,183
11.3%
728,371
99,499
(170,510)
(180,540)
$10.54
W/D
71,499,062
9.4%
2,301,802
334,503
423,178
782,204
782,204
$5.36
Total
91,175,245
9.8%
3,030,173
434,002
423,178
611,694
601,664
$5.91
Flex
2,204,780
13.6%
28,948
(61,914)
(42,914)
$8.09
W/D
19,887,622
5.1%
720,350
571,500
153,584
153,584
$4.57
PROPERTY
TYPE
Flex
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
W/D
9,759,156
2.7%
28,000
50,000
$3.04
Flex
4,925,691
10.3%
163,045
121,120
64,477
42,382
$10.76
W/D
44,536,853
9.2%
1,206,676
418,935
731,175
573,560
573,560
$3.72
Flex
7,130,471
11.3%
191,993
121,120
2,563
(532)
$9.88
W/D
74,183,631
7.3%
1,955,026
468,935
571,500
731,175
727,144
727,144
$3.86
Total
81,314,102
7.6%
2,147,019
468,935
571,500
852,295
729,707
726,612
$4.15
Flex
9,734,521
9.2%
277,762
30,064
(22,018)
(37,908)
$10.13
W/D
8,038,925
3.2%
42,837
(26,828)
(22,828)
$8.38
Flex
1,483,889
9.7%
(16,540)
(16,540)
$10.90
W/D
5,873,867
5.5%
7,900
(18,102)
(18,102)
$6.50
Flex**
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
W/D
7,203,249
3.3%
58,100
272,713
13,920
16,530
$5.20
Flex
11,218,410
9.3%
277,762
30,064
(38,558)
(54,448)
$10.34
W/D
21,116,041
3.9%
108,837
272,713
(31,010)
(24,400)
$6.68
Total
32,334,451
5.8%
386,599
302,777
(69,568)
(78,848)
$8.28
TOTAL FLEX
Flex
38,025,064
10.7%
1,198,126
129,563
121,120
(206,505)
(235,520)
$10.35
TOTAL W/D
W/D
166,798,734
7.8%
4,365,665
1,076,151
994,678
731,175
1,478,338
1,484,948
$4.75
TOTAL
204,823,798
8.3%
5,563,791
1,205,714
994,678
852,295
1,271,833
1,249,428
$5.37
Baltimore City
Carroll County
BELTWAY SUBMARKETS
BALTIMORE TOTAL
* RENTAL RATES REFLECT ASKING $PSF/YEAR **FLEX INVENTORY DOES NOT EXIST IN THIS MARKET
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MARKETBEAT
SF
TENANT
PROPERTY TYPE
SUBMARKET
180,000
Woodgrain Millwork
Warehouse Distribution
120,000
FedEx
Warehouse Distribution
112,000
AEXGroup, Inc.
Warehouse Distribution
Howard County
105,133
Eddie Mercer
Warehouse Distribution
86,000
Warehouse Distribution
Howard County
80,000
Warehouse Distribution
60,128
Harmon Glass
Warehouse Distribution
58,593
Warehouse Distribution
Howard County
52,124
Warehouse Distribution
Howard County
PROPERTY
SF
SELLER/BUYER
520,300
$10,850,000
8203 Fischer Rd
318,620
$10,574,997
230,835
$4,700,000
3501 E Biddle St
195,089
$19,050,000
1231 Tech Ct
151,125
$8,750,000
Carroll County
131,730
$30,400,000
Howard County
Rumsey Center
103,600
$15,750,000
Howard County
89,252
$7,980,000
60,000
TA Realty/Cabot Properties
$4,125,000
Copyright 2015 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
SUBMARKET
Sarah Dreyer
Regional Director, Mid-Atlantic
500 East Pratt Street, Suite 500
Baltimore, MD 21202
Tel: +1 202 739 0371
Fax: +1 202 296 1050
Sarah.dreyer@cushwake.com
www.cushmanwakefield.com