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O F F E R I N G M E M O R A N D U M
7070 Oakland Mills RoadCO LU M B I A , M D
DISCLAIMER
This Brochure is provided for the sole purpose of allowing a potential investor to evaluate whether there is interest in proceeding with further discussions regarding a possible purchase of or investment in 7070 Oakland Mills Road, Columbia, Maryland.
The potential investor is urged to perform its own examination and inspection of the Property and information relating to same, and shall rely solely on such examination and investigation and not on this Brochure or any materials, statements or information contained herein or otherwise provided.
Neither JLL, nor any of its partners, directors, officers, employees and agents (“Sales Agent”), nor the owner, its partners or property manager, make any representations or warranties, whether expressed, by operation of law or otherwise, with respect to this Brochure or the Property or any materials, statements (including financial statements and projections) or information contained herein or relating thereto, or as to the accuracy or completeness of such materials, statements or information, or as to the condition, quality or fitness of the Property, or assumes any responsibility with respect thereto. Such materials, statements and information have in many circumstances been obtained from outside sources, and have not been tested or verified. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given.
This Brochure is provided subject to errors, omissions, prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Property, and is subject to withdrawal, all without notice. The contents hereof are confidential and are not to be reproduced or distributed to any person or entity without the prior written consent of Agents and Owner or used for any purpose other than initial evaluation as indicated above.
E X E C U T I V E S U M M A R Y
JLL is pleased to present for sale a 17,000 square foot,
retail/office building located at 7070 Oakland Mills Road,
in the Oakwood Business Center Park in Columbia,
Maryland. Situated along the Baltimore-Washington
Corridor, the area has a high historical occupancy rate
over the past decade. Considered one of the strongest
suburban markets in the country, Howard County
attracts top employee talent from both Washington, DC
and Baltimore. This offering presents a rare opportunity
to purchase a stand-alone building in a location with
a variety of nearby amenities. The building sits near
I-95, Route 29, Route 100 and Route 32, which allows
convenient access to various parts of Howard County
and the major metropolitan areas.
THE OFFERING
ADDRESS 7070 Oakland Mills Rd Columbia, Maryland
SIZE 17,000 s.f.
TYPE Single-story retail/office
SUBMARKET Howard County
YEAR BUILT 1999
CONSTRUCTION Masonry
YEAR BUILT 1999
PARKING 75 free surface spaces;5.00 per 1,000 s.f.
ZONING M-1
ASSET CLASS Condominium
PRICE $3,400,000 ($200 p.s.f.)
E X E C U T I V E S U M M A R Y
37070 OAKLAND MILLS ROAD
Land Area 3.715± acres (161,805 s.f.)
Improvements Parking lot (2014)
Age Originally constructed in 1999
Clear Height 10’3”; office ceiling height: 7’9”
Roofing Membrane with stone; replaced in 2015
Windows Double pane in aluminum frames
Fire Protection Wet sprinklers
HVAC (3) Three Rooftop HVAC units; (2) two serving the North and South building are 15 ton each; (1) one unit serving the conference center is 7.8 ton
Lighting LED lights installed in 2016
Utilties Public water, sewer, natural gas, BGE, and Comcast
A S S E T O V E R V I E W
4 JLL | OFFERING MEMORANDUM
A S S E T O V E R V I E W
57070 OAKLAND MILLS ROAD
Site Plan
6 JLL | OFFERING MEMORANDUM
Floor Plan
77070 OAKLAND MILLS ROAD
Nearby Amenties
N
Kings Contrivance Village Center
117,591 s.f.
Owen Brown Village Center
85,000 s.f.
McGraw Plaza15,000 s.f.
Dobbin Center126,425 s.f.
Gateway Overlook526,000 s.f.
Snowden Square628,404 s.f.
Route 32
93,604 VPD
Snowden River Pkwy31,609 VPD
Route 175
65,700 VPD
I-95
193,200 VPD
8 JLL | OFFERING MEMORANDUM
N
Kings Contrivance Village Center
117,591 s.f.
Owen Brown Village Center
85,000 s.f.
McGraw Plaza15,000 s.f.
Dobbin Center126,425 s.f.
Gateway Overlook526,000 s.f.
Snowden Square628,404 s.f.
Route 32
93,604 VPD
Snowden River Pkwy31,609 VPD
Route 175
65,700 VPD
I-95
193,200 VPD
97070 OAKLAND MILLS ROAD
OVERVIEW
Supply: New development has tapered off slightly in 2018, but the pipeline is still active
Demand: Demand has come from a mix of industries, with Howard County’s local government boosting leasing velocity in Q3
Pricing: After focusing solely on Class A product, rents have trended higher for Class B space as well, which are up 4.2% annually
OUTLOOK
Supply: Groundbreakings will continue to largely focus on mixed-use developments at Maple Lawn and Downtown Columbia
Demand: Cybersecurity and technology tenants will continue to provide net new demand
Pricing: Traditional office buildings and parks will face increasingly challenging conditions as tenant demand gravitates toward amenity-rich options
Columbia Office Observations Q3 2018
COLUMBIA
M A R K E T O V E R V I E W
10 JLL | OFFERING MEMORANDUM
5,67
5,40
9
6,12
5,54
3
6,96
0,28
4
7,38
8,39
9
7,41
9,39
9
7,70
8,02
9
8,21
6,64
3
8,88
1,626
9,52
5,45
9
9,96
6,54
4
10,0
97,9
95
10,4
11,0
84
10,5
64,5
84
10,8
82,4
84
11,18
3,39
2
11,3
63,7
84
11,4
15,7
84
11,5
54,6
84
12,0
75,6
83
450,
134 83
4,74
1
428,
115
31,0
00
245,
720
508,
203
664,
983 64
3,83
3
441,0
85
131,4
51
313,
500
153,
500
179,
000
352,
908
150,
000
52,0
00
138,
900
560,
889
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
13,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Tota
l sup
ply (
s.f.)
Existing supply New deliveries
Office Supply
Columbia’s office supply has steadily grown
Office Direct Vacancy
Relocations and new supply have driven Class A vacancy upward and thus is now on par with Class B vacancy
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Dire
ct v
acan
cy ra
te
Overall Class A Class B
12.1%12.1%12.1%
M A R K E T O V E R V I E W
117070 OAKLAND MILLS ROAD
385,164
23,754 14,084
595,754
476,927451,687
421,464416,785
99,235
411,526
7,673
361,063320,607
20,982
448,020
533,583
287,149
28,617
-36,681-100,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
s.f.
DoD moves into space at Emerson
Office Net Absorption
Columbia posted negative absorption in Q3, led by contractions in Columbia Gateway, which has seen 76,488 s.f. of negative net absorption in 2018
Office Direct Asking Rents
Class A rents have jumped over the past 24 months as new construction in Downtown Columbia achieves rents >$35 p.s.f. FS
$23.
91
$22.
20 $24.
17
$22.
56
$22.
97
$23.
91
$25.
22 $26.
87
$26.
08
$25.
73
$25.
77
$25.
29
$25.
76 $27.
18
$27.
64
$26.
70
$26.
28 $28.
95
$29.
83
$18
$22
$26
$30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$ p.
s.f.
FS
Class A
$21.5
2
$21.9
8
$20.
98
$20.
48
$20.
29
$21.3
4
$22.
44
$23.
27
$21.0
1
$18.
92 $21.0
7
$21.6
6
$21.6
6
$22.
71
$22.
43
$22.
81
$23.
16
$23.
22
$24.
19
$15
$17
$19
$21
$23
$25
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$ p.
s.f.
FS
Class B
12 JLL | OFFERING MEMORANDUM
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tota
l s.f.
und
er c
onst
ruct
ion
2018 deliveries: 8120 Maple Lawn2019 deliveries: 6100 Merriweather2020 deliveries: N/a
Office Under Construction
Downtown Columbia’s next building is underway at 6100 Merriweather, which is set to deliver in the second half of 2019 and is anchored by Tenable
Office Clock
Development underway in Downtown Columbia has set new records for pricing; traditional office parks lacking amenities, however, face increasing challenges as blocks of second-generation space mount
Peakingphase
Fallingphase
Risingphase
Bottomingphase Harford County
Columbia
Woodlawn
Reisterstown Road Corridor
Baltimore City
I-97/Annapolis
Baltimore County East, I-83 Corridor
BWI
137070 OAKLAND MILLS ROAD
L O C A T I O N O V E R V I E W
���������������������
HOWARD
Washington
Baltimore
Annapolis
Gaithersburg
Columbia
Bowie
Potomac
Rockville 97
95
95
95
95
95
495
270
695695
395
295
66
70
83
895
795
195
301
301
50
50
1
1
29
40
40
RiverGunpowder
RiverMagothy
Chesapeake Bay
maps4news.com/©HERE
7070 Oakland Mills is located in Columbia, Maryland, a key suburban area and growing employment center
of the Baltimore Washington Corridor. Columbia is the largest urbanized cluster/community within Howard
County and the fourth largest County in the Baltimore-Washington corridor. The growing success of Howard
County is attributed to the County’s active promotion of economic development and its proximity to both
Washington, D.C. and the city of Baltimore. Because of its superior location at the center of the Baltimore-
Washington corridor, Howard County is the strategic location of choice for a diverse and thriving business
base. Many corporate and regional headquarters, a wide variety of technology firms, as well as wholesale
distributors and manufacturers call Howard County home.
Top Employers – Howard County Employees Product/ServiceJohns Hopkins University Applied Physics Laboratory 5,000 R&D systems engineering
Lorien Health Systems 2,000 Nursing care
Howard County General Hospital 1,777 Medical services
Verizon 1,700 Telecommunications
Howard County Community College 1,294 Higher education
Maxim Healthcare Service Inc 1000 Health Care and Social Assistance
Giant Food 1,050 Groceries
Oracle Micros 1000 Professional, scientific, and technical services
WR Grace & Co 1000 Manufacturing
14 JLL | OFFERING MEMORANDUM
L O C A T I O N O V E R V I E W
HOWARD COUNTY, MARYLAND
Howard County has approximately 105 million square feet of commercial real estate for a wide range of uses, including corporate headquarters, research and development facilities, distribution and warehousing, and retail centers. Office product in Howard County accounts for approximately 12.8 million square feet. The vast majority of the office product is located along the I-95 corridor and situated within business parks such as Columbia Gateway, Emerson Corporate Commons, Lyndwood Executive Center, and Crestpointe Corporate Center.
7070 Oakland Mills Rd
157070 OAKLAND MILLS ROAD
DEMOGRAPHICS 3 miles 5 miles 10 miles
POPULATION
2000 Population 67,944 167,574 500,928
2010 Population 74,388 186,982 564,960
2018 Population 86,354 214,071 631,941
2023 Total Population 93,485 231,139 671,296
2018-2023 Annual Rate 1.60% 1.55% 1.22%
2018 Total Daytime Population 105,419 239,571 630,483
Workers 66,337 145,638 340,515
Residents 39,082 93,933 289,968
HOUSEHOLDS
2000 Households 25,416 61,100 184,847
2010 Households 28,054 69,558 207,616
2018 Total Households 32,011 78,858 229,429
2023 Total Households 34,400 84,932 242,761
2018-2023 Annual Rate 1.45% 1.50% 1014%
2018 Average Household Size 2.67 2.63 2.69
MEDIAN HOUSEHOLD INCOME
2018 Median Household Income $104,926 $107,203 $99,029
2023 Median Household Income $114,052 $116,335 $108,863
AVERAGE HOUSEHOLD INCOME
2018 Average Household Income $125,021 $131,205 $123,964
2023 Average Household Income $144,017 $149,897 $142,418
PER CAPITA INCOME
2018 Per Capita Income $47,200 $48,341 $45,376
2023 Per Capita Income $53,914 $55,032 $51,851
HOUSING UNITS
2000 Housing Units 26,227 63,270 191,631
2010 Housing Units 29,286 72,746 118,398
2018 Housing Units 33,221 81,856 239,697
2023 Housing Units 35,563 87,819 252,818
Demographics
16 JLL | OFFERING MEMORANDUM
COLUMBIA MARKET OVERVIEW
The Columbia office market is composed of more than 12.1 million square feet of office space located in three submarkets: Columbia South, Columbia North, and Columbia Town Center or Downtown Columbia. Combined, these submarkets represent the most desirable areas for tenants seeking office product in the Baltimore Washington Corridor. This is evidenced by Columbia’s growth in supply and leasing velocity over the last three years, as well as the growing presence and economic multiplier effect of Fort Meade and the Base Realignment and Closure (BRAC) program. Historically, spikes in vacancy rates in the Columbia have come on the heels of significant deliveries of new product, as the area experienced 3.7 million square feet of new construction since 2005. The area was able to absorb the new supply during the mid-2000s, however, the financial crisis of 2008, and the subsequent recession, led to increasing vacancy as existing tenants downsized and growth in new demand tapered. During 2016, the Columbia office market once again experienced strong demand with positive absorption of approximately 252,226 square feet and year-over-year rental growth of 1.8%. Deliveries in Downtown Columbia in 2017 grew the supply by 5% and a long with a broad range of demand, cyber security activity picked up in Q4 2017, providing net new occupancy in the coming quarters. The new deliveries in 2017 added the most supply to inventory in Columbia since 2007, while also increasing asking rents by 9.0%. Development is slated to continue through 2018 and beyond with Tenable’s new 320,000 s.f. headquarters currently under construction, and developers taking bullish positions on future development across asset classes.
BALTIMORE-WASHINGTON CORRIDOR
The Baltimore office market consists of 28 submarkets with an inventory of just over 70 million square feet that spans both the city and the surrounding suburbs. The Corridor, primarily comprised of Howard and Anne Arundel Counties has experienced sustainable growth over the past decade as a diverse tenant base has generated consistent demand. The Corridor’s office inventory totals 22.4 million square feet and has steadily grown with the majority of new product delivering in the area immediately surrounding Fort Meade. The BW Corridor is often described as an inelastic economy as a result of the Federal Government’s presence and its tendency to expand during periods of economic contraction. Combined with an educated and affluent workforce, the area has emerged as the primary driver of net growth in the Baltimore metro market.
The Baltimore-Washington Corridor market was one of the first in the Baltimore region to emerge from the recession of 2008-2009. Since 2009, the Corridor office market has seen 4.4 million square feet of positive net absorption, and is presently 86.8% occupied. This steady demand for office space has more than kept pace with a sustained period of growth in the total office inventory in the market. Since the millennium, the Corridor has more than doubled in size, growing from 10.6 million square feet in 2000 to approximately 22.4 million square feet at the end of 2017. Approximately 545,134 square feet is under construction in the BW Corridor adding to nearly 778,060 square feet already completed since 2017. Despite the significant increases in inventory, overall vacancy has steadily declined, confirming the message of tremendous demand for space and growth seen in the BW Corridor.
177070 OAKLAND MILLS ROAD
���������������������
HOWARD
Washington
Baltimore
Annapolis
Gaithersburg
Columbia
Bowie
Potomac
Rockville 97
95
95
95
95
95
495
270
695695
395
295
66
70
83
895
795
195
301
301
50
50
1
1
29
40
40
RiverGunpowder
RiverMagothy
Chesapeake Bay
maps4news.com/©HERE
18 JLL | OFFERING MEMORANDUM
���������������������
HOWARD
Washington
Baltimore
Annapolis
Gaithersburg
Columbia
Bowie
Potomac
Rockville 97
95
95
95
95
95
495
270
695695
395
295
66
70
83
895
795
195
301
301
50
50
1
1
29
40
40
RiverGunpowder
RiverMagothy
Chesapeake Bay
maps4news.com/©HERE
TRANSPORTATION & ACCESSThe property benefits from Howard County’s excellent transportation network including access to highways, railroad, truck, water and air transportation. Major arteries include the Baltimore Beltway (I-695), I-95, I-70, U.S. 29, MD 32, MD 295, MD 175 and MD 100, which connects I-97 and U.S. 29, and with other major expressways to provide links to most major urban areas in the East. In addition to its extensive highway system, the County is served by several major railroads. CSX Transportation serves primarily the east and southeast sections of the County where the majority of the industrial development is located. Commuter service is provided at four MARC train stations in the County with nine daily commuter trains.
Access and Transit Times
Nearest bus 0.25 mi 4 mins
Route 32 1.3 mi 5 mins
I-95 3 mi 6 mins
Route 100 5 mi 11 mins
Fort Meade 10 mi 21 mins
BWI Airport 13 mi 24 mins
I-97 14 mi 21 mins
Baltimore, MD 16.4 mi 27 mins
Washington, DC 28.5 mi 1 hr 6 mins
Route 50 30 mi 1 hr 20 mins
197070 OAKLAND MILLS ROAD
500 East Pratt Street, Suite 1250Baltimore, MD 21202
www.jll.com
©2018 Jones Lang LaSalle, IP, Inc. All rights reserved.
All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
C O N T A C T I N F O R M A T I O N
Colin PenoyarVice President
+1 443 931 3349 [email protected]
Rob FreedmanSenior Vice President
+1 443 931 3346 [email protected]
Gary ApplesteinSenior Vice President
+1 443 931 3345 [email protected]
Jeff BachManaging Director
+1 443 931 3354 [email protected]
