CENTRAL PRINCE GEORGE’S COUNTY INDUSTRIAL ANALYSIS
The Central Prince George’s County Industrial subset would consist of the Landover/Largo and Cheverly/Hyattsville submarket. The total rentable base area for this subset is approximately twenty one million square feet in total, representing roughly 1/3 of the entire Prince George’s County Industrial market. The Central Prince George’s County submarkets have thrived over the years due to their proximity to Washington, DC and ease of access to the Capital Beltway making for an invaluable local/regional distribution point. Presently the subset is experiencing a higher than average vacancy rate of approximately 15%. Most of the vacant spaces however are in older class C buildings that are now considered obsolete due to lack of truck court depth, lower ceiling heights or a variety of other deficiencies. If you restrict the view of the subset to modern product (defined as built or renovated yr 2000 or later) the vacancy rate falls to just 2% of the approximately 1.8 million square feet of existing product.
The average asking rental rate for modern buildings is $6.50 NNN, Tenant’s are still in demand as positive absorption has only become prevalent again over the last 3 – 4 quarters. Landlords are still offering significant tenant concessions (including free rent and upgraded TI allowance packages). The market has seen increased occupancy from tenants in Northern Virginia and DC moving in to take advantage of lower rental rates and more efficient buildings. In the last year alone Gold Crust Bakery out of Alexandria took down an 82,000 square foot building and USESI, who had both MD and NOVA locations, consolidated into a new 120,000 square foot space. Landlord’s have been very aggressive on renewals and as the market is starting to tighten up there has been more movement from tenant’s in Class B and C space looking to take advantage of lower rental rates and relocate to Class A space.
New construction has been quite limited over the past 3 years due to a scarcity of industrial zoned land and negative market absorption. As demand strengthens and newer buildings continue to see increased occupancy the remaining industrial parcels will be developed. SteepleChase 95 which is just south of this subset, but a competing park for tenants, is expected to deliver two new buildings (48,000 and 93,000 s/f) by first quarter 2012. This is a very good sign for the market. The last three quarters have shown stronger absorption with Lincoln 495 landing a 50,000 s/f tenant and AOC/GSA leasing approximately 150,000 square feet in Cabin Branch Drive and Sheriff Road. Within the Landover submarket the modern product is almost fully occupied with both Cabin Branch Distribution Center (1M s/f business park) and the American Investment portfolio (approximately 300,000 s/f) both 100% occupied.
Market Outlook
The remainder of 2011 and the first half of 2012 seem poised for continued strengthening of the Prince George’s County industrial market. We anticipate continued demand from GSA for warehouse space being relocated from Washington, DC along with an ever expanding need for warehouse facilities for various agencies. We also anticipate growth in the retail warehousing supply chain as e-commerce continues to flourish and more regional warehouses are needed to keep up with the ever growing consumer base in Washington, DC. As the residential market continues to thrive in the DC Metro area the construction and service contractor businesses will continue to be a growth sector as well for our industrial market. We anticipate positive absorption over the next few quarters which should lead to higher rental rates and fewer landlord concessions needed in the market. With minimal new product available for lease presently we believe that speculative development of warehouse space over the next 3 – 6 quarters will increase and the remaining industrial ground in the Central Prince George’s County Industrial subset will dry up relatively quickly.
LANCE SCHWARZ, Vice President, NAI The Michael Companies, Inc., 301-918-2938
Washington Business Journal – by Rushern L. Baker III
Date: Friday, April 22, 2011, 6:00am EDT
To bring about real, sustainable and positive change in Prince George’s County, we must transform our fundamental approach to economic development.
This means focusing not only on big exciting projects such as National Harbor or Konterra, but also on having a more comprehensive, holistic approach toward creating a stronger county.
I firmly believe that through economic development we can create strong, safe neighborhoods, high-performing schools and good jobs with livable wages for our residents.
The new paradigm for economic development in Prince George’s County must be:
Responsive: An economic development program must address the needs of both the business …
Read more: Prince George’s is open for business | Washington Business Journal
Two Flex/Warehouse Condominiums containing a total of 6,250 square feet. Located conveniently at the intersection of MD Route 2 and Cherry Lane in downtown Laurel. The property has excellent access and provides the convenience of several amenities only seconds away. This property presents a great opportunity for a user-owner and has the flexibility to be split into two units.
8677 & 8679 Cherry Lane
Laurel,MD
Property Type: Industrial
Property Size: 2,500 – 3,750 SF SF
$6.50 – $8.00 USD/SF/Year
The long anticipated moves by the military and contractors onto the Maryland bases are going to happen earlier than what had been projected.
I have been following these moves for sometime and now know that the projected deadline of September 2011 is just a deadline, not when the actual moves will happen.
DISA’s move into Fort Meade, as an example, will really be in high gear this spring with the move from Arlington since their building is 97% completed. Currently the 5,000 + staff have been in a holding position in Arlington due to the “finish” schedule of their new 1,000,000 foot facility on the Fort Meade Campus. The DISA staff on the Campus have been waiting for the completion of their new building.
The large contractors working in this space have already taken blocks of space near the Base so that it can be projected to tighten the space availability. The mid level contractors who are postponing their decisions will find the need to look further from the bases than they projected since space is going to be scarce close in.
The bottom line is the effect of this will be 100,000 to 200,000 people moving to Maryland in the next five to ten years due to the BRAC decisions. It will have a dramatic impact on the office market in the Baltimore Washington Corridor.
Those companies sitting on the side lines now should get their plans into high gear. Those who hesitate will be lost. Feel free to call for discussions or strategies, 301-918-2907.
Betsy Daily
Vice President
NAI The Michael Companies, Inc.
Great Retail Pad Opportunity in City of Annapolis!
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1503 Forest Drive, Annapolis, MD. This 1.07 AC Land is For Sale on LoopNet.com. View this property and other commercial real estate at LoopNet.com.
1503 Forest Drive
Annapolis,MD
Property Type: Land
Property Size: 1.07 Acres SF
$2,500,000
8347 & 8349 Cherry Lane. This is a bank owned office condominium double unit in the Laurel Lakes Executive Park in Laurel. Maryland. this office is ideal for medical and professional users and is priced to sell at the below market price of only $150.00 per sf. Please arrange a tour today and discover what it means to be located in Laurel’s premier professional park.
8347 & 8349 Cherry Lane
Laurel,MD
Property Type: Office
Property Size: 2,366 SF SF
$355,000
19.551 sf of Industrial Condos at 8741 Ashwood Drive, Capitol Heights, MD. This property is bank owned and deeply discounted for a quick sale! Please contact Kahu Ludwig at 301.918.2924 or kludwig@naimichael.com.
8741 Ashwood Drive
Capitol Heights,MD
Property Type: Industrial
Property Size: 2,503 – 19,551 SF SF
$275,255 – $2,150,023
“Come see the new BJ’s Wholesale Club at Ritchie Station Marketplace! VIP Soft Opening tomorrow, Nov. 2 & Grand Opening Sat. Nov. 6. I-495 at Ritchie Marlboro Rd Exit 13″
1503 Forest Drive
Annapolis,MD
Property Type: Land
Property Size: 1.07 Acres SF
$2,500,000
9001 Hampton Overlook
Capitol Heights,MD
Property Type: Industrial
Property Size: 67,776 SF SF
$6,300,000
Just Listed… HQ facility offering 60,000 sf of warehouse space and 8,000 sf of office situated on 2.81 acres zoned light industrial. 8 loading docks, 1 large drive in door. Move in ready summer 2011.
