NAI Michael released its fourth quarter market report recently, which analyzes vacancy rates, average rental rates and the construction pipeline, as well as major sale and lease transactions. What this report forecasts is a positive absorption and rental rate growth for this year.
NAI Michael’s Office Report for Quarter 3 in 2013 is available!
The Prince George’s County office market totals approximately 26,402,329 square feet in 1,133 buildings. Lease rates and vacancy continue at the same levels they have been for the last five quarters. The lease rates for Prince George’s County are a good value compared to rates in Washington D.C. and other suburban areas in the region.
NAI Michael’s Industrial Market Report for Q3 in 2013 is available!
Here’s a quick overview:
The industrial market in Prince George’s County is seeing an abundance of new construction after two years of increased activity in the market, most of which is focused in the Central Sub-markets which include the Cheverly and Landover/Largo submarkets. This new construction is a result of declining vacancy due to several hundred thousand square feet of positive absorption in the submarket that had reduced sub-market vacancy to 6.1% as of Q1 2013. Currently, the overall Prince George’s County Industrial vacancy rate is 8.3% due to the delivery of new industrial space to the market.
Atapco has delivered two new buildings at Steeple Chase 95 (92K & 43K sf respectively) and has plans to deliver an additional 180K s/f of Class “A” industrial space in one buildings. Atapco’s 92K sf building has recently been fully leased to HD Supply Company. The Merchants Terminal site (adjacent to Cabin Branch) was purchased by a partnership between Chesapeake Real Estate, Oakmont and Carlyle and was recently delivered, adding 360,550 sf of vacant Class “A” industrial space known as the Landover Logistics Center. The final 77K sf of Lincoln Property Company’s 150K sf building (Lincoln 495) was recently leased by Uni-Select. Lincoln Property Company sold the Class “A” warehouse for $107 per sf to TIAA-CREF in Q2 2013. Pannatoni has plans to build an approximately 220K sf spec building in Bowie at their Collington site which should be delivered late 2014.
CENTRAL PRINCE GEORGE’S COUNTY INDUSTRIAL ANALYSIS
The Central Prince George’s County Industrial subset would consist of the Landover/Largo and Cheverly/Hyattsville submarket. The total rentable base area for this subset is approximately twenty one million square feet in total, representing roughly 1/3 of the entire Prince George’s County Industrial market. The Central Prince George’s County submarkets have thrived over the years due to their proximity to Washington, DC and ease of access to the Capital Beltway making for an invaluable local/regional distribution point. Presently the subset is experiencing a higher than average vacancy rate of approximately 15%. Most of the vacant spaces however are in older class C buildings that are now considered obsolete due to lack of truck court depth, lower ceiling heights or a variety of other deficiencies. If you restrict the view of the subset to modern product (defined as built or renovated yr 2000 or later) the vacancy rate falls to just 2% of the approximately 1.8 million square feet of existing product.