Baltimore I-95 South

Industrial Market Review

Current Market Trends

Rental
Rates

Leasing
Activity

Tenant
Concessions

Rental rates have

begun increasing
and should continue
to do so through
2015.
A steady volume of
activity has emerged
in the market.
Absorption has been
spread across both
new construction and
B product.
Tenant concessions
have diminished
slightly. Free rent is
still an important
tenant driver, but an
increase in leasing
demand has brought
free rent closer to
historical average
levels.

Fourth Quarter 2014

Baltimore Metropolitan Overview

The 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 November 2014,
the Baltimore metropolitan areas
unemployment rate was 5.6% compared
to the national unemployment rate of
5.8%.

Baltimore I-95 South Industrial Market

The I-95 South industrial market
experienced approximately 88,000
square feet of positive absorption in the
third quarter of 2014. Overall, the I-95
South market now has a vacancy rate of
12.19%. The Corridor submarket has the
lowest vacancy rate, at 10.89%, and
continues to see consistent positive
absorption.
Average asking rents increased across
the board in the fourth quarter. New
construction of Class A facilities, driven
by consistent demand for industrial
space in the I-95 South market, has
helped drive this increase in average
asking rents.

Q4 2014 Vacancy Rates &

Average Quoted Rental Rates
Vacancy Rate
Product Type

# Of Buildings

SF

SF Vacant

Vacancy Rate

Flex

319

13,224,779

1,526,560

11.54%

Office Warehouse

451

30,928,400

3,982,829

12.88%

Bulk

190

32,165,012

3,796,406

11.80%

I-95 South Totals

960

76,318,191

9,305,795

12.19%

By Submarket

# Of Buildings

SF

SF Vacant

Vacancy Rate

Corridor

573

54,717,908

5,957,151

10.89%

Southeast

171

7,333,721

1,031,929

14.07%

Southwest

216

14,266,562

2,316,715

16.24%

I-95 South Totals

960

76,318,191

9,305,795

12.19%

Average Quoted Rental Rate

By Submarket
Corridor

Flex

O/W

Bulk

Average

$8.38

$5.62

$7.81

$6.96

Southeast

$5.50

$5.62

$4.47

$5.09

Southwest

$8.00

$4.96

$4.34

$4.81

I-95 South Averages

$6.97

$5.47

$6.61

$6.20

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BALTIMORE I-95 SOUTH INDUSTRIAL FOURTH QUARTER 2014

Behind the Numbers

For more information, contact one of

our Industrial Brokers:

0 SF

Amount of new construction delivered in the I-95 South Market during

2012.

159,940 SF

Amount of new construction delivered in the I-95 South Market during

2013.

532,751 SF

Amount of new construction delivered in the I-95 South Market during

2014.

Notable Q4 2014 Lease Transactions

DTZ
100 Light Street
Suite 1400
Baltimore, MD 21202
T +1 410 752 4285
F +1 410 576 9031
www.dtz.com

Property

7481 Coca Cola Drive

Hanover, MD

7462 New Ridge Road

Hanover, MD

8205 Patuxent Range Road

Jessup, MD

Size

180,299 SF

126,000 SF

56,987 SF

Tenant

Carrier

Autozone

Office Max

Landlord

IIT

Liberty Property Trust

Knott Realty

Type

New / Relocation

New

New / Relocation

Notable Q4 2014 Sales Transactions

Property

6740 Dorsey Road

Elkridge, MD

8235 Patuxent Range Road

Jessup, MD

6740 Dorsey Road

Elkridge, MD

Size

120,186 SF

241,709 SF

120,186 SF

Seller

Finmarc

Chesapeake R.E. / Atapco Prop.

Finmarc

Buyer

DCT Industrial

Principal Real Estate Investors

DCT Industrial

Price

$12,500,000

$26,700,000

$12,500,000

About DTZ
DTZ is a global leader in commercial real estate services providing occupiers, tenants and investors around the world with a full spectrum of property solutions. Our core capabilities include agency leasing, tenant
representation, corporate and global occupier services, property management, facilities management, facilities services, capital markets, investment and asset management, valuation, building consultancy,
research, consulting, and project and development management. DTZ manages 3.3 billion square feet and $63 billion in transaction volume globally on behalf of institutional, corporate, government and private
clients. Our more than 28,000 employees operate across more than 260 offices in more than 50 countries and proudly represent DTZs culture of excellence, client advocacy, integrity and collaboration. For further
information, visit: www.DTZ.com or follow us on Twitter @DTZ.

dtz.com | 2

DTZ Industrial Market Statistical Overview

October 1, 2014 - December 31, 2014
Submarket

Cassidy Turley Classification

BALTIMORE I-95 SOUTH INDUSTRIAL FOURTH QUARTER 2014

Number of Buildings

Total Size (SF)

Total Available (SF)

Vacancy Rate

QTR Absorption (SF)

Corridor
Airport 100

737,600

0.00%

Arundel Crossing

11

1,706,054

268,268

15.72%

6,609

Baltimore Commons

35

3,995,805

668,978

16.74%

178,128

Baymeadow

17

2,073,594

77,000

3.71%

Brandon Woods

17

1,973,886

46,956

2.38%

BWI Commerce Park

14

511,658

24,300

4.75%

BWIP

96

7,709,179

543,246

7.05%

Columbia Gateway

2,168,713

359,085

16.56%

Corridor Industrial

18

2,050,248

115,598

5.64%

Cromwell Business Park

14

707,632

54,735

7.73%

Guilford Industrial

34

2,681,778

457,226

17.05%

Harwood Industrial Park

10

172,645

14,500

8.40%

Hillside/Preston Gateway

1,566,168

109,193

6.97%

26,208

Hollins Ferry

22

3,235,070

336,247

10.39%

44,116

Industrial Trade Center

14

669,887

94,820

14.15%

Junction Business Park

18

1,205,248

137,267

11.39%

-6,287

Marley Neck

1,755,835

48,060

2.74%

MD Wholesale Food Center

17

2,979,319

853,842

28.66%

Meadowridge

13

1,707,670

274,113

16.05%

-228,500

Montevideo/Dorsey Run

18

1,865,042

191,216

10.25%

Oakland Ridge

17

961,632

34,763

3.62%

-5,732

Park 100

484,450

120,000

24.77%

Parkway Industrial

23

1,362,839

202,373

14.85%

Patapsco Valley

1,195,772

0.00%

Race Road

278,255

39,689

14.26%

Route 1 Corridor

32

1,624,836

66,239

4.08%

Route 1 Laurel

21

1,346,020

77,412

5.75%

Route 100

30

2,726,585

372,847

13.67%

Sieling Industrial

27

1,265,308

170,880

13.51%

Troy Hill

16

1,999,180

198,298

9.92%

97,824

54,717,908

5,957,151

10.89%

112,366

Total

573

Southeast
Annapolis Industrial

23

777,453

57,787

7.43%

Brooklyn

19

1,745,209

535,157

30.66%

-100,000

I-97 Industrial

56

1,756,863

69,275

3.94%

Route 2 Industrial

32

974,603

66,748

6.85%

Route 3 Industrial

21

594,486

37,106

6.24%

Route 170

17

1,360,024

265,856

19.55%

Telegraph Rd Business Pk

125,083

0.00%

171

7,333,721

1,031,929

14.07%

-100,000

Arbutus Industrial

46

3,287,844

793,140

24.12%

-27,400

Baltimore City Southwest

35

2,117,863

337,396

15.93%

33,600

Camden Industrial Park

24

2,908,697

410,172

14.10%

9,567

Caton Research Center

41

1,709,154

197,755

11.57%

3,900

DeSoto

25

1,448,506

167,850

11.59%

Hammonds Ferry

43

2,560,612

344,402

13.45%

16,155

Total
Southwest

233,886

66,000

28.22%

40,000

Total

West Port, Camden

216

14,266,562

2,316,715

16.24%

75,822

Grand Total

960

76,318,191

9,305,795

12.19%

88,188
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