Industrial Property Demand in Prince George’s County
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.