
Market Outlook
By O.Bowie ARnot, MacKenzie Retail
Despite a sluggish national economy and the absence of institutional capital necessary for underwriting large-scale retail projects, the Baltimore metro area continues to grow, with several notable new shopping venues under development,. Among the many local retail projects currently under development are; Boulevard at Box Hill (Abingdon), 25th Street Station (Remington, Baltimore), McHenry Row (Locust Point, Baltimore), Canton Crossing (Canton, Baltimore), Waugh Chapel II (Crofton), Wegmans (Columbia), Maryland Live! Casino (Hanover), Maple Lawn (Maple Lawn), and Foundry Row (Owings Mills). Not surprisingly, each of these developments is a mixed-use or "lifestyle" development indicating that a shift in consumer spending habits is likely to continue and the suburban strip mall, which suffered greatly over the last several years, will continue to face fierce competition.
While downtown Baltimore no longer enjoys traditional department store shopping, it continues to demonstrate that it is the region's #1 entertainment center. Over the last 12 months the entrepreneurial spirit in the community was alive and well in Fells Point and Harbor East, with the opening of several new restaurant operations that are helping to reinforce the rich character of Downtown Baltimore. Among the new restaurants vying for attention are Wit & Wisdom (located in the recently opened Four Seasons Hotel), Waterfront Kitchen, Thames Street Oyster House, Chazz: A Bronx Original, Olive Room at the Black Olive Inn, Bond Street Social, and Ten Ten. And just north of downtown Baltimore Two Boots has opened at The Fitzgerald (in midtown), Demi in Belvedere Square, Corner BYOB in Hampden, and Meet 27 in Charles Village.
Actual consumer spending for 2011 relative to 2010 remains uncertain, due in part to financial reporting authorities, such as the International Council of Shopping Centers (ICSC), the National Retail Federation (NRF), Yahoo! Finance, J. P. Morgan and the Wall Street Journal, offering different year-end results. Some report that retail sales for the last twelve months were up over their previous year, while others say it was a dismal year, caused in part by gas price spikes, the various military conflicts, the earthquake in Japan, the downtick in the global economy due to joblessness and unstable currencies within the European Union. The only positive thing that can be safely concluded is that despite all these negative events, the American retail economy has weathered these storms better than one might have expected, proving once again that our economy and our consumer spirit is still resilient.

Notable Transactions
Lease
| Location | Submarket | Tenant | Amount Leased SF |
| 599-B Baltimore Pike | Harford County | Mars | 39,605 sf |
| 4000 Seven Mile Lane | Reisterstown Road Corridor | Signature Collision Center | 28,000 sf |
| 1544-1598 Whitehall Road | Annapolis | Mariners Church | 22,518 sf (r) |
| 8601 Walther Boulevard | Baltimore County East | Learning Experience | 10,000 sf |
| 1809 Reisterstown Road | Reisterstown Road Corridor | Ann Taylor Loft | 5,164 sf |
| 111 Market Place | Baltimore City | Fresh Ventures Market Place | 2,515 sf |
Sale
| Location | Submarket | Price | PSF | Size |
| 120 E. Lombard Street | Baltimore City | $6,000,000 | $70.93 | 84,591 sf |
| 302 Tollgate Road | Harford County | $700,000 | $269.23 | 2,600 sf |
| 38 West Street | Annapolis | $575,000 | $351.90 | 1,634 sf |
| 6520 Waterloo Road (condo) | Columbia | $388,575 | $275.00 | 1,413 sf |
(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 12/2011.
| Number of Buildings | 2,121 |
| Market Size (sf) | 100,482,931 |
| Change Since Last | |||
| Current | QTR | YR | |
| Direct Vacancy | 6.22% | ||
| Vacancy W/ Sublet | 6.46% | ||
| Net Absorbtion | 148,184 | ||
| Avg. Asking Rent | $17.79 | ||
Above:Both vacancy and rental rates remained virtually unchaged for the second quarter in a row.
Above: Baltimore City and the York Road Corridor represent the largest submarkets in the region though both Annapolis and Harford County are beginning to see growth that is loosely tied with BRAC.
Above: The Baltimore Retail Market resembles a "hub and spoke" configuration, with many of the submarkets following the major roads in and out of Baltimore City.