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cassidyturley.com | 1
Baltimore I-95 NorthIndustrial Market Review First Quarter 2014
Baltimore Metropolitan OverviewThe Greater Baltimore Metropolitan area
has emerged as one of the strongest
second-tier markets in the United States.
While Baltimore is a stand-alone
metropolitan statistical area (MSA) with
over 2.7 million residents, it is also part
of the Washington-Baltimore
consolidated statistical area (CSA) with a
total population over 8 million. The
Greater Baltimore region comprises
Anne Arundel, Baltimore, Carroll, Cecil,
Harford and Howard Counties as well as
Baltimore City. As of March 2014, the
Baltimore metropolitan area’s
unemployment rate was 6.3% compared
to the national unemployment rate of
6.7%.
Baltimore I-95 North Industrial MarketThe I-95 North industrial market
experienced little activity in the first
quarter of 2014 as inclement weather
contributed to a delay in new leasing
activity. Fortunately, the strength of the
I-95 North market was displayed by a
lack of sizeable moveouts that otherwise
would have caused a spike in vacancy.
The East Baltimore City and County
submarkets continue to enjoy some of
the spillover demand from the extremely
tight Harford and Cecil County
submarkets. With an overall vacancy rate
of 7.71%, the I-95 North industrial
market is certainly one of the strongest in
the Mid-Atlantic region.Current Market Trends
Rental Rates
Bulk rental rates will rise as there is now a lack of supply for bulk product. Functional office warehouse buildings should see a slight uptick in rates along-side absorption.
Leasing Activity
As the I-95 North market as a whole continues to tighten, the submarket of Baltimore County East is expected to be the next to experience potential absorption.
Tenant Concessions
Tenant concessions diminished during 2013 as vacancy rates have decreased. Q1 2014 saw concessions remain flat from year-end 2013.
Q1 2014 Vacancy Rates & Average Quoted Rental RatesVacancy Rate
Product Type # Of Buildings SF SF Vacant Vacancy Rate
Flex 91 2,183,135 256,863 11.77%
Office Warehouse 375 15,971,492 1,349,123 8.45%
Bulk 223 46,475,132 3,377,040 7.27%
I-95 North Totals 689 64,629,759 4,983,026 7.71%
By Submarket # Of Buildings SF SF Vacant Vacancy Rate
City East 249 16,359,342 901,563 5.51%
County East 204 20,520,796 2,725,592 13.28%
Cecil County 42 7,958,613 301,370 3.79%
Harford County 194 19,791,008 1,054,501 5.33%
I-95 North Totals 689 64,629,759 4,983,026 7.71%
Average Quoted Rental Rate
By Submarket Flex O/W Bulk Average
City East $4.33 $5.14 $4.54 $4.82
County East $10.60 $4.28 $3.51 $3.62
Cecil County $11.89 – $2.95 $3.30
Harford County $11.89 $5.42 $4.03 $4.77I-95 North Averages $7.81 $5.04 $3.65 $4.05
cassidyturley.com | 2
BALTIMORE I-95 NORTH • INDUSTRIAL • FIRST QUARTER 2014
About Cassidy TurleyCassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.
Behind the Numbers For more information, contact one of our Industrial Brokers:
Cassidy Turley 100 Light Street Suite 1400 Baltimore, MD 21202 Tel: 410.752.4285 Fax: 410.576.9031
www.cassidyturley.com
12.00% Vacancy rate of 20’-23’ clear buildings in Baltimore County East at the end of Q1 2014.
7.52% Vacancy rate of 24’-28’ clear buildings in Baltimore County East at the end of Q1 2014.
Notable Q1 2014 Lease Transaction
Property 531 Chelsea Drive Perryman, MD
8987 Yellow Brick Road Rosedale, MD
Size 656,000 SF 11,146 SF
Term 10 Years 3 Years
Yr. 1 Rent/Esc. $4.75 / 2.5% $7.50 / 3.0%
TI PSF $5.00 N/A
Tenant Sephora Vivint Solar
Landlord Ryan Commercial Merritt Properties
Type New Lease New Lease
Notable Q1 2014 Sales Transaction
Property 1801 Clark Road Havre De Grace, MD
1361 Brass Mill Road Belcamp, MD
1801 Clark Road Havre De Grace, MD
Size 437,564 SF 60,000 SF 437,564 SF
Buyer Plastipak Holdings, Inc. Brass Mill GB LLC Plastipak Holdings, Inc.
Seller Constar International, Inc. North Cross Realty, Inc. Constar International, Inc.
Price $10,800,000 $5,550,000 $10,800,000
Submarket Cassidy Turley Classification Number of Buildings Total Size (SF) Total Available (SF) Vacancy Rate Qtr Absorption (SF)
Baltimore City East
City East 129 6,707,287 221,569 3.30% 8,830
Highland 9 1,050,172 0 0.00% 0
Holabird-Point Breeze 46 5,772,505 468,749 8.12% -18,723
Midtown 34 1,530,523 120,210 7.85% 23,740
Moravia-Shannon Industrial 31 1,298,855 91,035 7.01% 8,986
Total 249 16,359,342 901,563 5.51% 22,833
Baltimore County East
Baltimore Crossroads 14 4,369,285 985,272 22.55% 21,872
Canton-Quad Industrial 49 3,763,170 232,265 6.17% -2,365
Golden Ring Industrial 11 539,312 54,278 10.06% 9,000
Marshfields Business Park 4 1,341,995 307,843 22.94% 0
North Point Road Ind Corridor 18 3,031,914 768,700 25.35% 0
Rosedale Industrial 20 1,103,632 99,414 9.01% 0
Rossville-Pulaski Industrial 58 3,497,218 222,673 6.37% 39,000
White Marsh Industrial 30 2,874,270 55,147 1.92% 9,327
Total 204 20,520,796 2,725,592 13.28% 76,834
Cecil County
Cecil Industrial 42 7,958,613 301,370 3.79% -87,000
Total 42 7,958,613 301,370 3.79% -87,000
Harford County
Aberdeen Industrial 17 3,545,404 205,372 5.79% 0
Forest Hill 80 1,420,120 186,335 13.12% -25,928
Harford Route 24 Industrial 35 4,538,374 127,900 2.82% -8,000
Havre de Grace 9 1,897,866 22,800 1.20% 0
Joppa 17 378,856 59,200 15.63% 0
Perryman Peninsula Industrial 7 3,968,226 123,144 3.10% 0
Riverside 29 4,042,162 329,750 8.16% 0
Total 194 19,791,008 1,054,501 5.33% -33,928
Grand Total 689 64,629,759 4,983,026 7.71% -21,261
Cassidy Turley Industrial Market Statistical OverviewJanuary 1, 2014 - March 31, 2014
cassidyturley.com | 3
BALTIMORE I-95 NORTH • INDUSTRIAL • FIRST QUARTER 2014