Sales activity is reflective of continued demand for high-quality buildings among end-users in Central Maryland region
Kate Jordan, Principal with Lee & Associates Chesapeake Region, recently completed her eighth building sale in 2017 with a cumulative transactional dollar volume exceeding $12.4 million. The most recent activity was the sale of an industrial condominium building at 10555 Guilford Road in the Jessup section of Howard County, Maryland. Jordan has also completed more than sixty leases this year and is the exclusive listing agent for 3.3 million square feet of commercial space.
“The Central Maryland region continues to be an extremely attractive location for corporate expansion and relocation, as driven by a number of fundamentals including low unemployment, new job creation and an extremely diverse corporate base,” explained Kate Jordan of Lee & Associates. “From an industrial space perspective, new inventory continues to be added as developers and investors recognize the long-term health of the local marketplace, as fueled by an expanding population. Nearly 7.3 million square feet of industrial space is either under construction or planned, encompassing twenty different projects. This activity represents a continuation of the past several years and see no indication of a slow-down in the near-term.”
The sales included a 50,000 square foot flex building in Columbia; a 32,000 square foot industrial building located in the southwest area of Baltimore City; a 14,000 industrial project in the Towson section of Baltimore County and a 9,400 square foot daycare facility in the Odenton area of Anne Arundel County. Two industrial condominium buildings were part of the activity and Jordan, together with Marley Welsh of Lee & Associates also sold a .76 acre tract of land in Jessup with a M2 zoning classification for $629,000 ($827,631 per acre). This sale was one of only two M2-zoned outside storage parcels to trade in Howard County during 2017.
According to research from Lee & Associates, nearly 200 million square feet of industrial space is contained in the greater Baltimore metropolitan region, with an overall vacancy rate of approximately 6.6%. In the past twelve months, more than 4.5 million square feet of space has been absorbed.
“End-users are increasingly searching for building ownership opportunities as a method to create equity, particularly among companies that have consistent space requirements,” Jordan added. “Capital is readily available as well due to historically-low interest rates.”
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada. Lee & Associates provides superior market intelligence in office, industrial, retail, investment and appraisal to meet the specialized needs of our clients. Visit www.leeassociates.com