Tag: prince george’s county

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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.

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.

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

 

Industrial Vacancy Rate Low in Prince George's County

Industrial Vacancy Rates at All-time Low

Market InsightMarket Reports
Industrial vacancy rates are at an all-time low of 6.7% in Prince George’s County.

High demand has contributed to low industrial vacancy rates. Approx. 880,000 square feet of new industrial space was delivered within the county in 2016. In addition, another 500,000 square feet is in the pipeline for 2017 delivery.

These positive trends have created a competitive Class A industrial market. Due to demand, average rental rates is at a high of $7.79 per square foot on a triple net basis. We expect rental rates to push higher in 2017 as industrial-zoned ground becomes increasingly scarce and the supply of vacant space continues to diminish.

As a result of these trends, we expect nearly all of Prince George’s County’s Class A industrial space will be absorbed within the next two years.

For additional details and transaction info, click here to view the full industrial market report.

Prince George’s State of the County Breakfast

Company News

Last Thursday, the Prince George’s County Economic Development Corporation hosted a breakfast event at Colony South Hotel & Convention Center in Clinton, MD. It was a fantastic event with speeches from Prince George’s County elected officials about what’s been happening in the county and where it’s going from here. EDC President & CEO Gwen McCall talked about bringing in international business and announced that the entire county is now a Foreign Trade Zone. She also discussed Youth@Work, a summer employment program, and encouraged area businesses to use it to hire youth for the summer. We were also treated to an overview of the new EDC branding campaign, Experience, Expand, and Explore Prince George’s County.

There is a lot of activity going on in the county, from the potential FBI headquarters to MGM’s $925 million casino and resort at National Harbor. In fact, the county has $6 billion worth of development projects in the pipeline!

County Executive Rushern Baker focused on how education impacts economic development, “schools are paramount to our economic success. We can’t afford to lose sight… We need strong school systems to attract new residents and businesses.”

His entire speech can be watched here.

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