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Map: Industrial Submarkets

Quarter Highlights
  • A sure sign of BRAC activity in Harford County, three new deals were inked at 6245 Guardian Gateway Drive: General Dynamics (10,000 sf), Boeing Company (6,000 sf), and Harford Community College (3,000 sf).
  • Solo Cup announced plans to close its Owings Mills manufacturing facility in two years and eliminate 540 jobs and ending an operation that has been in Baltimore County for more than eight decades. The 52 acre site with 2,000,000 sf of manufacturing and distribution space is currently being marketed for sale, and may take years to be redeveloped.
  • Auto imports and exports are on the rise in Baltimore, breaking records for the Port of Baltimore. In March 2010 38,053 cars passed through the port's public terminals solidifying the Port of Baltimore as the U.S. leader in roll-on roll-off cargo.
  • Developers are grappling with the economic impacts of the State's new storm water management legislation as Maryland strives to protect the Chesapeake Bay.
  • Users interested in purchasing continue to scour the market for the right opportunity. Although financing is available with rates at historic lows, strict underwriting and the dearth of available product, has resulted in few sales.
  • Commodities warehouser Henry Bath has placed more than 300,000 sf on the sublet market in three different buildings near the port of Baltimore. New construction is at a standstill in the region, with the exception of several flex buildings near Aberdeen being driven by BRAC.
  • The Hollander 95 Business Park in eastern Baltimore City recently went to auction. FRP Development Corporation was the high bidder at $4.3 million for the sole completed building in the park. Approximately 44,100 sf of the 82,800 sf building remains vacant. The remaining undeveloped land with a potential build-out of over 500,000 GLA was taken back by the lender M&T Bank at $3 million. The total sale price of $7.3 million represents only half the $14 million debt originally borrowed by Hollander Rock LLC.
  • Rental Rates continue to trend lower through the first half the year as vacancies remain idle.
Market Outlook
By Anirban Basu, Sage Policy Group

One of the most interesting aspects of the industrial market year-to-date is warehousing. As of the second quarter, the warehouse direct vacancy rate was 11.1 percent, higher than a year ago when direct vacancy stood at 10.5 percent. But these statistics serve to mask observed improvement in activity over the past six months, with a number of meaningful leasing deals transpiring during the first half of 2010. Significant leasing deals include 210,000 square feet at 3000 Waterview Avenue in Baltimore City and 144,400 square feet leased at 670 Chesapeake Park Plaza in Baltimore County East. All told, warehouse net absorption year-to-date exceeds 1.1 million square feet in the Baltimore area, a reflection of rebounding economic activity in key retail and wholesale components of the local economy.

 

 

 

 

 

Notable Transactions
Flex Lease

Location Submarket Tenant Amount Leased SF
6480 Dobbin Rd BW Corridor Martek Biosciences Corporation 53,325 (r)
9200 Berger Rd BW Corridor Bechtel Corporation 45,700 (r)
7151 Columbia Gateway Dr BW Corridor ADG Creative 27,709

Flex Sale

Location Submarket Price PSF Building Size SF
9631 Liberty Rd Baltimore County West $8,200,000 $48.02 55,550
8901 Herrmann Dr BW Corridor $1,989,000 $163.57 12,160

Warehouse Lease

Location Submarket Tenant Amount Leased SF
3000 Waterview Ave Baltimore City Barton-Cotton 210,000
670 Chesapeake Park Plz Baltimore County East Ace Logistics Inc. 144,400
7825 Rappahannock Ave BW Corridor Potomac Wholesale, Inc. 120,000
6720 Baymeadow Dr Annapolis Pacific Trade International 117,200
8200 Stayton Dr BW Corridor RoomStore 113,334 (r)
1225 Bengies Rd Baltimore County East CDS Logistics Management Inc. 110,220
6940 San Tomas Rd BW Corridor BarrierSafe Solutions International, Inc. 101,817
4665 Hollins Ferry Rd Baltimore County West Saver Automotive Products, Inc. 101,750
8210-8214 Wellmoor Ct BW Corridor Dormia, Inc 100,000 (r)

Warehouse Sale

Location Submarket Price PSF Building Size SF
1040 Swan Creek Dr Annapolis $23,500,000 $45.86 308,220
8265 Patuxent Range Rd BW Corridor $16,900,000 $39.38 73,840

*(r) Renewal

* All information furnished regarding property for sale, rent, exchange or financing is from sources deemed reliable. No representation is made as to the accuracy thereof and all such information is submitted subject to errors, omissions, or changes in conditions, prior sale, lease or withdrawal without notice. All information should be verified to the satisfaction of the person relying thereon. Portions of the base statistics are from CoStar Property data. Data as of 06/2010.