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

Increase in Office Investment Sales in Suburban Maryland

Market Insight

2016 is poised to be a great year for the office market, thanks to an increase in office investment sales in suburban Maryland. We are already seeing major growth in the number of sales and the total square footage being sold throughout Prince George’s, Montgomery, Howard, and Anne Arundel counties.

By the end of June 2015, the suburban Maryland* market saw 43 buildings sold, with a total of 2,856,583 square feet – the equivalent of nearly 6 football fields – according to data NAI Michael has gathered from the CoStar Group**. This year so far, CoStar reports the sale of 53 buildings and a total of 4,227,305 square feet. In other words, the first half of 2016 has seen a 19 percent increase in the number of buildings sold and a 32 percent increase in total square footage sold.

Increase in Office Investment Sales - Square Footage Sold Comparison
Increase in Office Investment Sales – Square Footage Sold Comparison

Keep reading

Leasing Space for Small Businesses

4 Tips on Negotiating Personal Guarantees when Leasing Space for Small Businesses

Market Insight

Leasing space for small businesses can be difficult for tenants that don’t fully understand the commercial real estate process. One aspect of leasing space that small businesses should understand is the personal guarantee. Andy Mayr of NAI Michael provides some insight on how to best negotiate personal guarantees when leasing space for small businesses. By Andy Mayr, CCIM

Landlords usually require their prospective tenants to provide business financials, such as tax returns, income statements, balance sheets, and personal financials before moving forward on a formal lease agreement.  If the landlord is not comfortable with the review of these documents or requires additional security, s/he may also ask the tenant to sign a personal guarantee.  In the event of leasing space for small businesses, it is especially important to understand personal guarantees.  Personal guarantees have been around in the banking industry for many decades, though they have only been in the real estate leasing world for about the past 40 years.

A personal guarantee puts the tenant’s own assets — such as real estate, savings, or other valuables — on the line should their business not be in a position to pay rent or other lease obligations. If you are new to owning a business or desperate to obtain a lease, you might overlook the legality of the personal guarantee. It is important to know what you are committing to and that you can negotiate the extent of the guarantee. Landlords sometimes expect a tenant to either not accept or limit a guarantee to a specific financial or time constraint. The four most popular resolutions to achieving a mutually acceptable personal guarantee are as follows: Keep reading

Mr. Michael at Business Hall of Fame

Business Hall of Fame Inducts NAI Michael’s Kenneth H. Michael

Company News

Business Hall of Fame recognizes Kenneth H. Michael’s business and community contributions.

NAI Michael’s Chairman, Mr. Kenneth H. Michael, was inducted into the Maryland Chamber of Commerce’s Business Hall of Fame last week. This is an immense, well deserved honor that recognizes his lifetime of successes throughout the great state of Maryland. Mr. Michael founded The Michael Companies (now NAI Michael) in 1973 and has grown it into the prominent commercial real estate firm that it is today. He has passed the company down to his two sons, Gary and David, while still remaining an active leader in the commercial real estate and development industry. Keep reading

Inaugural Creating Kingdom Buildings Conference Organizers

Inaugural Creating Kingdom Buildings Conference Gathers Real Estate Industry Leaders to Teach Pastors How to Build Their Houses of Worship

Company News

by Marcus Daniels

The Inaugural Creating Kingdom Buildings Conference brought together industry leaders in real estate, civil engineering, zoning & land use, architecture, construction, finance and risk management in the Washington Metropolitan Area to educate the faith community on how to successfully grow and build their houses of worship.

Over 200 attendees representing more than 100 churches gathered at The Sanctuary at Kingdom Square in Capitol Heights, MD on Saturday, April 30th. They learned more about the building process for houses for worship, identifying their congregations’ needs for space, assembling a project team, preparing their finances, determining the right location,  hiring the architect & contractor, maintaining the property and managing the risks associated with their property. With seminars and speakers on how to acquire, create and maintain optimal worship spaces, the conference featured speakers from NAI Michael, Linowes and Blocher LLP, Ben Dyer Associates Inc., EagleBank, Industrial Bank, Arel Architects, SAA Architecture and more. Keep reading

New and ongoing development projects - Riverdale Park Station

State of the Economy Previews New and Ongoing Development Projects in Prince George’s County

Market Insight

There are a number of new and ongoing development projects that are contributing to economic development in Prince George’s County, according to the 2016 Prince George’s County State of the Economy Address that NAI Michael had the pleasure of attending on April 13, 2016.

Many new and ongoing development projects were highlighted during the State of the Economy for Prince George’s County. County Executive Rushern L. Baker III, Jim Coleman of the Prince George’s County EDC, Derrick L. Davis of the County Council, and Jim Estepp of the Prince George’s Business Roundtable all spoke about the transformation and re-envisioning of the County. In fact, Baker said that there are more than $7 billion worth of projects in the pipeline, including:

Keep reading

Washington Food and Supply

Washington Food and Supply Relocates to Prince George’s County

Deals & Transactions

Washington Food and Supply, a wholesale grocer, has relocated its warehouse to Prince George’s County from their Florida Market location in the District of Columbia.

Washington Food and Supply, Inc. recently moved into a warehouse at 6300 Columbia Park Road in Landover, Maryland. Maryland Newsletters has provided details about the transaction, which can be found below. Keep reading

2015 Industrial Market Report

2015 Industrial Market Year End Wrap-Up!

Market InsightMarket Reports

The Prince George’s County 2015 industrial market grew, with many new facilities delivered and new tenants coming into the market. We review the 2015 industrial market and look ahead to what 2016 will hold for the county.

The 2015 industrial market was rife with new inventory in Prince George’s County. Over 900,000 SF of new, class A facilities came to the market, including Cabin Branch Industrial Park, Andrews Federal Campus and Collington Park. Tenants are starting to make the switch from class B and C space into better class A space. Also, we are seeing many northern Virginia tenants moving into Prince George’s County, which has more affordable rental rates. The increase in demand led to positive tenant absorption and a 5.5% increase in rental rates on average.

In Prince George’s County, there are seven primary class A industrial projects which could be viable for a large industrial user. These include SteepleChase 95, Cabin Branch Industrial Park, Andrews Federal Campus, the Brick Yard, and Collington Park. This class A space will be in high demand during 2016 and is expected to be fully absorbed over the next 36 months.

Interested in reading more about the 2015 industrial market in Prince George’s County? Check out the full report here.

By Lance Schwarz & Peter Burleigh

 

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Upcoming Events

Aug
11
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5:30 pm After Hours Mixer – Greater Bowi... @ The Kenhill Center
After Hours Mixer – Greater Bowi... @ The Kenhill Center
Aug 11 @ 5:30 pm – 7:30 pm
After Hours Mixer – Welcome to our new Executive Director! Come greet our new Executive Director, Pauline Markward.  Networking, refreshments and fun! Click here for more information and to register0000000 Keep reading
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Maryland Space Business Roundtab... @ Martin's Crosswinds
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11:30 am Maryland Space Business Roundtab... @ NASA HQ
Maryland Space Business Roundtab... @ NASA HQ
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14
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5:30 pm After Hours Mixer – Greater Bowi... @ Freeway Airport
After Hours Mixer – Greater Bowi... @ Freeway Airport
Sep 14 @ 5:30 pm – 7:30 pm
Do you like aviation, hangers, history & good food? If so, you will love this popular mixer at Bowie’s premier airport that has been in the Rodenhauser family for decades. Where else can you network[...]
Sep
22
Thu
5:30 pm Thirsty (for Business) Thursday! @ Marlton Golf Club
Thirsty (for Business) Thursday! @ Marlton Golf Club
Sep 22 @ 5:30 pm – 7:00 pm
Join Team EDC for the September installment of the best networking event in Prince George’s County! Meet and Mingle with the most prominent movers and shakers in the county at the Marlton Golf Club in[...]
Oct
6
Thu
6:00 pm Night at the Wheel Networking Ex... @ National Harbor
Night at the Wheel Networking Ex... @ National Harbor
Oct 6 @ 6:00 pm – 8:00 pm
Please join County Executive Rushern L. Baker, III at our signature summer business event.  Meet and network with the movers and shakers of Prince George’s County! Included with your tickets: take a ride on the Capital[...]
Oct
19
Wed
5:30 pm After Hours Mixer – Greater Bowi... @ Byrd & Byrd, LLC
After Hours Mixer – Greater Bowi... @ Byrd & Byrd, LLC
Oct 19 @ 5:30 pm – 7:30 pm
Toby & Jackie Byrd have invited our members back to their law offices once again for delicious food and drink, wonderful conversation and networking. They and their welcoming staff have always made this After Hours[...]
Oct
20
Thu
5:30 pm Thirsty (for Business) Thursday! @ Dave & Buster's
Thirsty (for Business) Thursday! @ Dave & Buster's
Oct 20 @ 5:30 pm – 7:00 pm
Join Team EDC for the October installment of the best networking event in Prince George’s County! Meet and Mingle with the most prominent movers and shakers in the county at the brand new Dave and[...]

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