Office Vacancy Reduced in Prince George’s County

Market InsightMarket Reports

Prince George’s County office vacancy reduced by over half a million square feet leased in the last six months!

Leasing of vacant space achieves over 357,000 square feet in the first quarter 2017 – the highest quarterly absorption for the last 10 years.  Recently signed leases and new leasing activity indicates that Prince George’s County is poised for continued significant growth in office leasing in 2017.

The Washington DC area office market includes the District of Columbia and adjacent suburban submarkets in Maryland and Virginia. The Washington DC area office market consists of about 470 million square feet in 10,051 buildings.  Net absorption for the overall Washington Area was positive 2,754,849 square feet for the first quarter 2017.  The Washington Area vacancy decreased from 14.6% to 14%.

Prince George’s County office space net absorption of vacant space was positive 357,767 square feet in the first quarter 2017.  Annual rental rates for Prince George’s County office space have increased steadily almost every quarter for the last five quarters with the first quarter 2017 rate per square foot of averaging in the mid-twenty dollar range on a full service basis.

FOR A FULL OFFICE MARKET REPORT, CLICK HERE

NAI Michael’s Agents Present at CEG Annual Economic Empowerment Conference

Company News

By Marcus Daniels and Ed Luckett

The Collective Empowerment Group Economic Empowerment Conference was held on Friday, April 7, 2017  at First Baptist Church of Glenarden at 3600 Brightseat Road in Landover, Maryland.

The Economic Empowerment Conference taught churches how to prepare your ministry to expand, relocate, build spaces and places for the physical houses of worship, share knowledge on identifying property, acquisition and financing of real estate projects, zoning and land use, building and construction, and how technology can be utilized in design and building as well as drawing greater input and buy-in from your members.

Marcus Daniels had moderated a panel discussion on how to prepare your ministry to expand, relocate, build spaces and places for the physical houses of worship. Ed Luckett was a speaker on a panel discussing zoning & land use, building & construction and planning for churches.

Left to right – Marcus Daniels (NAI Michael), Ed Luckett (NAI Michael), Midgett S. Parker (Linowes and Blocher LLP), Terry Beverly (Eagle Bank), and Barry Caison (Ben Dyer Associates Inc.)

Keep reading

Office vacancy declined in 2016 in Prince George's County

Office Vacancy Declined in 2016 for Prince George’s County

Market InsightMarket Reports

Over the course of 2016, office vacancy declined in Prince George’s County and in turn, average quoted rental rates have risen steadily.

 It was a year for the Prince George’s County office market. Office vacancy declined steadily every quarter, from 19.2% at the beginning of 2016 to 18.8% by year end. Based on 5-year averages and known construction activity, office vacancy is expected to drop to 17% by the end of 2017. Average full service rental rates increased in 2016, from $20.96 in Q1 to $21.43 in Q4.

A total of 114 office sale transactions were completed in 2016. These transactions totaled 2,597,862 square feet and $168,786,687 in sales volume. Many new owners plan on investing substantial capital into their assets to retain and attract tenants. For leasing, over 153 full service leases were completed, representing 530,820 square feet. One of the largest lease deals of 2016 was with the growing tech-education company, 2U Inc. They are in the process of relocating into 252,950 square feet they leased at 4900 Harkins Road in the Lanham/New Carrollton area.

FOR A FULL OFFICE MARKET REPORT, CLICK HERE

 

Industrial Vacancy Rate Low in Prince George's County

Industrial Vacancy Rates at All-time Low

Market InsightMarket Reports
Industrial vacancy rates are at an all-time low of 6.7% in Prince George’s County.

High demand has contributed to low industrial vacancy rates. Approx. 880,000 square feet of new industrial space was delivered within the county in 2016. In addition, another 500,000 square feet is in the pipeline for 2017 delivery.

These positive trends have created a competitive Class A industrial market. Due to demand, average rental rates is at a high of $7.79 per square foot on a triple net basis. We expect rental rates to push higher in 2017 as industrial-zoned ground becomes increasingly scarce and the supply of vacant space continues to diminish.

As a result of these trends, we expect nearly all of Prince George’s County’s Class A industrial space will be absorbed within the next two years.

For additional details and transaction info, click here to view the full industrial market report.

7601-7615 Ora Glen Drive - October Deals

NAI Michael’s October Deals 2016

Deals & Transactions

Our agents have been busy making commercial real estate deals this October, from two-building office portfolios to industrial land sales. Maryland Newsletters has highlighted some of our October deals, which can be found below.

Two-Building Takedown One of Greenbelt’s Biggest Leases Ever Executed
An office lease that gobbled up two buildings was just completed in Greenbelt. Government contractor T-Rex leased both 7601 and 7615 Ora Glen Drive recently, providing it with the room to service a major Census Bureau contract. The two leases total 126,000 square feet, or approximately 78,000 feet in the larger, three-story building at 7601, and 48,000 feet in the one-story building at 7615 Ora Glen. It is Shaw Real Estate LLC whose two buildings went, with T-Rex’s arrival, from vacant to fully leased. The Baltimore-based company had bought the pair, as well as a Bank of America pad site, last fall for approximately $5 million. The three-building complex had been in distress, in the hands of special servicer C-III. Lockheed Martin’s exit from the pair had precipitated their fall into default. Shaw, headed by Steve Shaw, said when his firm acquired them that the buildings were in ‘excellent shape,’ needing little renovation beyond lobby and HVAC system upgrades. Those improvements will be completed soon. T-Rex is also reportedly touring the market for additional space. JLL represented the tenant, while NAI Michael represented the landlord. Keep reading

Top 6 Commercial Office Sales and Leases in Q1 & Q2 2016

Market Insight

Over the first half of the year, 79 office leases and 18 office building sales over 15,000 square feet have demonstrated an increase in the number of transactions in Prince George’s County.

By Dave Wills

The volume of sales transactions, eight of which were investment purchases, averaged $84.93 per square foot, or a total of $55,787,949. The office leases, totaling 300,962 square feet, were term extensions or expansions of existing leases 45% of the time. Starting rents averaged $23.20/SF with full service terms. Rents usually included some remodeling or interior office construction. There were five executed leases that exceeded 10,000 square feet totaling 134,564 square feet with terms averaging five years. Below are the top three commercial property sales and the top three business office leases in the county that were executed by mid-2016.

Notable Sales

  1. Metro Plaza (Metro East) – 8100-8300 Professional Place, Landover:
    A four-building office property totaling 175,717 square feet was sold on May 6, 2016 for $13.175 million ($74.98/SF). The buildings were 75% leased at the time of sale. Market lease rates were $21.95/SF full service for comparable buildings in the Landover submarket.
  2. Corporate Plaza (Metro East) – 8200-8400 Corporate Drive, Landover:
    A three-building office property totaling 179,062 square feet was sold on June 14, 2016 for $14.6 million ($81.54/SF). The buildings were 82% leased at the time of sale. Market lease rates were $21.95/SF full service for comparable buildings in the Landover submarket. The Metro East buildings are located near the intersection of the Capital Beltway (I-495) and Route 50. They are within walking distance of the New Carrollton transit station.
  3. Triangle Centre – 6401 Golden Triangle Drive, Greenbelt:
    A four-story, 80,454 SF office building was sold on June 2, 2016 for $4 million ($49.72/SF). The building was 44.7% leased at the time of sale. The building is brick construction and includes interior/exterior structured parking. Market lease rates were $21.87/SF full service for comparable buildings in the Greenbelt submarket. The building is located near the intersection of Greenbelt Road and Kenilworth Avenue, with direct access to the Capital Beltway.

Notable Leases

  1. In the first quarter of 2016, ATA Aerospace leased approximately 12,000 square feet at Maryland Trade Center II, 7474 Greenway Center Drive, Greenbelt. The space will be used for a NASA contract along with ASRC Federal Space and Defense.
  2. Fluor Enterprises leased approximately 44,000 square feet at 6801-6811 Kenilworth Avenue in the Calvert Metro Park, Riverdale. Fluor Enterprises will be working on WMATA’s Purple Line, which is scheduled to be completed in 2022. The Purple Line is a 16-mile light rail line that will extend from Montgomery County through College Park and onto New Carrollton in Prince George’s County.
  1. 2U, Inc., a software company, has signed a lease for approximately 252,950 square feet at 4900 Harkins Road in Lanham. They will be relocating from nearby 8201 Corporate Drive in Landover, vacating approximately 80,000 square feet. The move is scheduled for the 2nd quarter 2017.

VIEW NAI MICHAEL’S FULL 2016 MID-YEAR OFFICE MARKET REPORT

How Can We Help You?

NAI Michael is a full-service commercial real estate firm located in the Washington, DC metropolitan area. We have been providing brokerage, property management, and development consulting services for over 40 years.

 

 

Industrial Property Demand in Prince George's County

Industrial Property Demand in Prince George’s County

Market Reports

Prince George’s County has seen industrial property demand rise over the past few quarters. Our mid-year 2016 industrial market report examines this demand and shows growth for the county’s industrial market.

Prince George’s County’s location makes it ideal for serving the District of Columbia, suburban Maryland, and northern Virginia markets. This makes it highly attractive to storage and distribution businesses. There has been a significant increase in industrial property demand and we have seen ample new construction to meet this growing demand. Two new buildings totaling 275,000 square feet were delivered at Cabin Branch Distribution Center in 2015. We have already seen 225,000 square feet absorbed, primarily by the United States Government. Overall vacancy in Prince George’s County held at 8.1% during the first two quarters of 2016, even with the additional supply added of new buildings.

Also contributing to the industrial property demand in the county are attractive rental rates compared to the neighboring jurisdictions of the District of Columbia and northern Virginia.  While rental rates in those neighboring markets are averaging north of $9 per square foot, tenants can still lease class A product in Prince George’s County for the mid $7’s per square foot NNN.

Lance Schwarz and Peter Burleigh of NAI Michael provide the full details and numbers behind the industrial market’s first two quarters of 2016.

CLICK HERE FOR THE FULL INDUSTRIAL MARKET REPORT

2016 Mid-Year Office Market Report

Office Market Activity Boost in Prince George’s County

Market Reports

Our 2016 mid-year office market report indicates that there is an office market activity boost in Prince George’s County during the first two quarters of the year.

Over the first half of the year, increased interest in Prince George’s County contributed to an office market activity boost. The County’s office market is showing signs of growth, while the Washington DC office market has been slowing down. One reason for this is the attractive rental rates in Prince George’s County. The average office rental rate is approximately $30 less in Prince George’s County than in the District of Columbia.

Additionally, there has been an increase in the number of transactions in the county – 79 full service office leases and 18 office sales over 15,000 square feet have been completed. As we’ve recently reported, this is part of the dramatic increase in office investment sales in suburban Maryland. We expect sales of multi-tenanted office buildings to ultimately benefit office tenants. There will be a push to upgrade and renovate properties to more modern standards. This means that some buildings will finally receive long-awaited upgrades, both cosmetic and in the systems that support their workplace environments.

VIEW NAI MICHAEL’S FULL 2016 MID-YEAR OFFICE MARKET REPORT

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