Studio 3807

Multifamily Project Promote Route 1 Density

Company News

According to real estate data giant CoStar Group, this year over 800 multifamily units have been delivered in a market covering everything in northern Prince George’s County from the Beltway to the District line, and as far east as Greenbelt. Apartments in this market show 5.7% vacancy and 3.2% rent growth. These numbers are better than what industry experts have expected.

The effect on value is profound. Properties with the right mix of location, zoning, and size for multifamily construction are selling historically well. Access is crucial and proposed projects need parking or dense walkability. Many developers are still looking for streetside properties, either for current development potential or as long-term hold properties.

While some are asking if the market is in a value bubble, there are structural changes that will support density and greater values in the future too. Two new grocery stores along Route 1- Whole Foods and Lidl- are backing multifamily expansion as do offices like the WeWork near campus and music venues such as the Hall CP. The Purple Line is currently under construction. It will form a unique transit connection between Prince George’s and Montgomery Counties. This connection will promote denser development in each.

CLICK HERE FOR THE FULL PGCRE NEWSLETTER: UPPER COUNTY

New Hotels in Prince George’s County

Market InsightMarket Reports
One of the new hotels in Prince George's County, The Hotel at UMD.
The Hotel at the University of Maryland in College Park

The hotel/hospitality market in Prince George’s County is expanding. Since 2016, 11 new hotels have developed in Prince George’s County including MGM National Harbor, The Hotel at the University of Maryland, and Cambria Hotel & Suites in College Park. Those few alone added over 1,500 new hotel rooms in the county.

Additionally, other new hotels are delivering in late 2019 and early through late 2020. These include the Hyatt Place at National Harbor, Homewood Suites in Largo and the Residence Inn by Marriott at Ritchie Station.

The hotel sales market in Prince George’s County continues to outperform most similar jurisdictions across the United States. It is projected to continue to thrive with over $3 billion in economic development projects over the next five years.

To learn more about the new hotels in Prince George’s County and to read the full Hospitality Market report, click here.

This report is prepared by Marcus Daniels, Terry Rogers, and Ed Luckett of NAI Michael.

High end residential at Editors Park

High-End Residential Development Thriving in Maryland

Market Insight

High end residential development is thriving throughout northern Prince George’s County. New projects, representing over 2,000 units, are underway at all points in the development process. Demand is keeping pace with development.

Multifamily development has been a major force along Route 1 for years, especially with the development of student housing starting in 2011. The pace of construction reflects renewed interest in living around College Park. This means more traditional residential development – apartments, condos, and townhouses – is growing too.

Developers work hard to bring options to high-earning professionals by building luxury homes that they can’t keep on the market. Townhomes are under contract nearly as soon as they’re completed. As three representative projects – Greenbelt Station, Riverdale Park Station, and Editors Park – show, developers have been able to sell new townhomes at a range from $214 to $385 per square foot. This equates to around half a million dollars per unit.

To learn more about high end residential development in Prince George’s County, along with other area news, view our full Route 1 Route 295 Corridor Newsletter.

Click here to view the spring edition of the Route 1 Route 295 Corridor Newsletter.

College Park

College Park is Development Hot Spot

Company News

College Park is undergoing a rapid transformation. Many new restaurants, such as Burton’s Grill at Riverdale Park Station and Vigilante Coffee, have recently opened in the College Park Route 1 corridor. Additionally, new developments are planned for the area. The Clarion Inn on Route 1 sold to Lidl for redevelopment, and Bozzuto is to begin construction on a mixed-use center in College Park.

To learn more about College Park development and other commercial real estate news in the area, please check out our Route 1/Route 295 Corridor Newsletter.

VIEW THE NEWSLETTER HERE

Office Demand Picks Up in 2017

Market Reports

Office demand in the Washington DC market picked up over the course of 2017. Lease rates increased, and recent 5-year statistics show growth and stability in the market.  Suburban Maryland’s office demand is keeping pace throughout Prince George’s County, Montgomery County, and Anne Arundel County. These markets are all offering attractive lease rates and absorption.  New office construction has increased in the DC market, with 2018 construction forecast to outpace other U.S. metro areas.  The Prince George’s County Office Market is expected to achieve positive net absorption in 2018 after adding of several new office buildings scheduled to deliver in the fourth quarter.  The Washington DC market’s office demand is supported by a vibrant economy and a labor pool of well-diversified government and non-federal employers. Office sales volumes began to rebound in 2017 and are forecast to continue in 2018. Federal government facilities and related leases have contributed to the stability of the market, which gives office investors and landlords confidence.

For the full report, please click here.

industrial demand

Industrial Demand in 2017

Market InsightMarket Reports

2017 saw a variety of industrial demand levels – investment sales reached new heights, while leasing slowed for the first time in three years.

The Prince George’s County industrial market experienced an increase in vacancy, going up to 7.6% as opposed to last year’s 6.5%. However, there were two large Class A leases signed in 2017.

Despite the slowdown in leasing activity, industrial demand from investors has been strong. Pricing has reached an all-time high, and scarcity of industrial-zoned land will keep the market tight.

In 2018, we expect to see increased industrial demand in leasing. Additionally, evidence shows sales values for industrial should reach over $150 per square foot.

CLICK HERE TO READ THE FULL REPORT

Collington Lease

Collington Lease to La-Z-Boy

Company NewsDeals & Transactions

The 220,800-square-foot Collington lease was Prince George’s County’s largest lease in 2017.

La-Z-Boy leased 220,800 square feet of industrial space at Collington Park in Upper Marlboro, MD. This is a full-building lease. It’s the largest industrial lease completed in Prince George’s County for all of 2017. Delivered in 2016, the building is located at 16101 Queens Court. La-Z-Boy is an international home furnishings company. NAI Michael represented MRP Industrial/AEW in the Collington lease, inked in December 2017.

In total, Lance Schwarz and Peter Burleigh of NAI Michael successfully leased over 400,000 square feet of class A industrial space in Prince George’s County in 2017.

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