Tag: office

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

 

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

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Prince George’s County Q2 Office Market Report

Market Reports

NAI Michael’s Q2 Office Market Report is out!

The Prince George’s County office market borders the District of Columbia from I-95 to the north and around to the Wilson Bridge and Potomac River on the south next to National Harbor and the proposed MGM casino. The Prince George’s County office market totals approximately 26 million square feet in 1,134 buildings at very affordable rates just over $20 per square foot compared to rates as high as $50 per square foot in DC’s central business district and approximately $28 per square foot in Montgomery County.

Click here for the full office market report.

Office Q2 2015 Report Thumbnail

Office Report Q3 2013

Market Reports

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.

CLICK HERE TO VIEW THE FULL OFFICE REPORT

Q3 2013 OFFICE REPORT

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