2015 eagb regional report

Front Cover

Introduction

The Economic Alliance of Greater Baltimore is a partnership of government, industry, and higher education promoting Greater Baltimore as a world-class market in which to live, work, learn, and invest.

The organization promotes regional economic development through marketing, business retention, business attraction, partnership, and thought leadership.

The Economic Alliance tracks the Baltimore Metropolitan Statistical Area (MSA) annually using key economic indicators. Throughout this report, Greater Baltimore is compared to the average of every US metropolitan region and to the US national average. Where specified, Greater Baltimore is ranked among the 25 most populous US metropolitan areas or benchmarked among select metro areas, determined to be comparable to the Greater Baltimore region.

The Greater Baltimore Regional Report includes year-end data from sources such as the Bureau of Labor Statistics, the Census Bureau, the Bureau of Economic Analysis, and the National Science Foundation.

A note regarding sources and timing: Data sources often lag for several months or years. The report uses the most recent year-end and monthly data available at the time the analysis is completed.

This report is made available for reference and your own purposes. Contact us at 888.298.4322 or [email protected] with any questions. For more data, news, and updates on the Economic Alliance of Greater Baltimore, please visit us at www.greaterbaltimore.org.

Defining the Region 4

Greater Baltimore andthe Baltimore-Washington Corridor 4

Population 5

Demographics 6

Educational Attainment 7

The Regional Economy 8

Employment & Productivity 8

Entrepreneurship and Innovation 10

Quality of Life 11

Homeownership and Home Prices 11

Wage Growth and Purchasing Power 12

Climate & Amenities 13

Jobs & Investment 14

Expansion, Retention, and Relocation 14

New Development 15

Defining the RegionGreater Baltimore and the Baltimore-Washington CorridorThe federally defined Baltimore Metropolitan Statistical Area (MSA) includes Baltimore City and the surrounding counties of Anne Arundel, Baltimore, Carroll, Harford, Howard and Queen Anne’s. Cecil County is a partner of the Economic Alliance, but is not included in official metropolitan data for Greater Baltimore. Where possible, Cecil County information is included in EAGB reporting.

Additionally, the larger Baltimore-Washington Combined Statistical Area (CSA) is comprised of the Baltimore MSA, the Washington, DC MSA, and other small metro and micropolitan areas and is referred to as the Baltimore-Washington Corridor.

Greater Baltimore is unique among the markets it is commonly compared to because of it borders with the Washing-ton, DC MSA, which allows the region to draw employees from a larger workforce than exists within its defined bound-aries. Commuting patterns support the notion of an expanded workforce region, as many residents of either region commute every day to work across metropolitan boundaries.

Regional CommutersFrom

Greater Baltimore to:From

MD Suburbs of DC to:From

DC to:From

Northern VA to:

Greater Baltimore 945,626 117,791 7,150 20,563MD/DC Suburbs 149,284 471,745 37,132 86,470DC 30,511 202,233 169,915 179,428Northern VA 22,260 94,160 35,564 941,196

Defining the RegionPopulationGreater Baltimore is home to more than 2.7 million residents, making it one of the 25 largest metropolitan regions in the United States. The region’s population has grown 2.6 percent since 2010, faster than the New York, Chicago, Pittsburgh, and Detroit MSAs, but not as rapidly as the US metro average at 3.7 percent.

Greater Baltimore is a diverse region. Twenty-eight percent of residents are black/African American; 5 percent are hispanic; and 5 percent are Asian.

The median age for residents in Greater Baltimore is 38.2, the ninth-oldest age among the 25 largest metropolitan regions.

Greater Baltimore has a typical age distribution, and the counties in the region are generally similar in terms of age distribution. Only Baltimore City stands out as having a large population of 22- to 29-year-olds. Greater Baltimore itself does not have a particularly large population of residents in any age group.

Foreign-born residents of Greater Baltimore make up roughly 10 percent of the region’s population, below the share of foreign-born residents nationally and among all US metros.

other

asian

hispanic

black

white

white

black

hispanic

asian

other 59%

28%

5%5% 3%

Race in Greater Baltimore2014

Defining the RegionDemographicsEconomies compete to attract talent. Skilled young professionals are the next generation of entrepreneurs and executives, and establishing a lifestyle and workplace culture that attracts young professionals can be beneficial to continued economic prosperity.

Greater Baltimore ranks eighth among the 25 largest US metros for the growth of young professionals. Over the last five years, the number of young professionals in the region has grown just over 10 percent, similar to the rate of young professional growth in San Diego, San Francisco, and Houston.

While the young professional age group does include 18- to 24-year-olds, the residency of subset of the population is particularly unstable. Many 18- to 24-year-olds have changed residence due to going to college in a different county or state, and have little desire to remain in the area following their graduation or after gaining experience at a first job. The 25- to 34-year-old subset of young professionals is slightly more stable, and as a result, is used to gauge the region’s ability to attract young, qualified workers with job opportunities and quality of life. Greater Baltimore would benefit from not only attracting 18- to 24-year-olds interested in the region’s world-class educational institutions but also from retaining them in the workforce following graduation.

The region is attractive to college-educated young professionals. Greater Baltimore ranks seventh among the 25 largest US metros for the growth in young

professionals with a Bachelor’s degree or higher. This subset of the population has grown roughly 22 percent since 2010, a rate competitive with Seattle, San Antonio, and San Francisco.

Additionally, this population has degrees in relevant fields. Among the 25 largest US metros, Greater Baltimore has experienced the third-fastest growth of 25- to 39-year-olds with Education degrees; the fourth-fastest growth with Science & Engineering Related Fields, which lead to occupations as architects, clinical lab technicians, and pharmacists; and the fifth-fastest growth of young professionals with Business degrees.

Greater Baltimore is particularly popular among young professionals with advanced degrees. While the total number of Greater Baltimore residents with advanced degrees has grown over 12 percent over the last five years, the number of 25- to 34-year-old residents with Master’s and Doctorate degrees in Greater Baltimore has grown over 30 percent over the same time period. Greater Baltimore has experienced the fourth fastest rate of growth of young professionals with advanced degrees among the 25 largest US metros, while overall growth of residents with advanced degrees has been slower than the US average.

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Defining the RegionEducational AttainmentGreater Baltimore is home to one of the most educated populations in the country. The region ranks fourth among the 25 largest US metros with over 16 percent of residents holding graduate or professional degrees and eighth with over 37 percent of residents with a Bachelor’s degree or higher. Greater Baltimore is significantly more dense with highly educated residents than the national average and the average US metro area.

The nearby DC Metro has the highest concentration of college graduates in the country. Because the two metropolitan areas share a fluid workforce, employers in both regions have access to a combined talent pool of highly-skilled and well-educated people.

Greater Baltimore’s universities are graduating students into high-wage jobs. The highest starting salaries for recent graduates are in computer science, engineering, and mathematics degree fields, and nearly 15 percent of Greater Baltimore residents have four-year degrees in computer science or engineering. Four-year universities in Maryland conferred over 11,700 degrees in STEM fields in 2014, including 4,200 degrees in technology fields, 3,000 degrees in engineering, and 550 degres in mathematics.

US News and World Report recognizes Greater Baltimore colleges and universities as among the best regionally and nationally. Seven regional universities are also listed among the 100 best colleges for veterans in the US due to their participation in federal programs that serve active

service members and veterans. Johns Hopkins University was named one of the best value schools in the country. Maryland Institute College of Art is listed as the #7 fine arts school in the country, and was ranked #3 in graphic design.

Other media outlets have recognized the unparalleled higher education assets in Greater Baltimore. UMBC was one of just 20 public universities to be named a best buy in Fiske’s 2016 Guide to Colleges. Seven Greater Baltimore colleges and universities were named to the Princeton Review’s list of The Best 380 Colleges.

US News and World ReportUndergraduate Education Rankings

2016National Universities

10 Johns Hopkins University156 University of Maryland, Baltimore County

National Liberal Arts Colleges9 US Naval Academy

55 St. John’s College112 Goucher College

Most Innovative Schools4 University of Maryland, Baltimore County6 Goucher College

Regional Universities (North)3 Loyola University Maryland

43 Towson University58 Notre Dame of Maryland University79 Stevenson University

122 University of BaltimorePublic Schools

1 US Naval Academy12 Towson University37 University of Baltimore84 University of Maryland, Baltimore County

The Regional EconomyEmployment & ProductivityGreater Baltimore has exhibited strong employment growth over the last decade. The region has grown by 59,200 jobs since 2005, just over 4.5 percent in the ten-year period. This rate ranks thirteenth among the 25 largest US metros and is comparable to the growth of nearby Washington, DC, New York, and San Diego. The 25 largest US metros grew by an average of 5.8 percent between 2005 and 2014, 1.3 points faster than Greater Baltimore.

Despite the region’s steady ten-year growth, employment growth since 2013 is slower than the US average and significantly slower than fast-growing large metropolitan regions. Between 2013 and 2014, Greater Baltimore employment grew 0.9 percent, a full point below the US average of 1.9 percent. The average one-year growth in employment among the 25 largest US metros in the same period totaled 2.3 percent, nearly 1.5 points greater than Greater Baltimore’s one-year growth rate.

The Greater Baltimore unemployment rate of 5.5 percent has declined slowly from its peak in early 2010. The US unemployment rate, which sits at 4.9 percent, is below the unemployment rate in Greater Baltimore after having been multiple percentage points higher in the late 2000s. The unemployment rate in Greater Baltimore continues to trend nearly identically to the national rate of unemployment.

Meanwhile, more residents than the national average in Greater Baltimore are part of the labor force, defined as employed or actively looking for work, which is an indication that residents are optimistic about job prospects. A declining unemployment rate coupled with low rates of labor force participation would signify that people are no longer searching for jobs.

The Regional EconomyEmployment & ProductivityGreater Baltimore’s economy was resilient through the recession of the late 2000s and has since grown steadily. The region experienced only a minor decrease in real output in the late 2000s while the average US metro suffered a nearly 3 percent decline in productivity during the financial crisis. After showing 3 percent growth immediately following the financial crisis, the regional economy has grown at roughly 1.5 percent annually. This rate of growth is slower, but remains more consistent, than that of the US and the average US metro.

Exports from the State of Maryland reached historic highs in 2014. Over $12 billion worth of goods and services were exported from Maryland, $400 million more than in 2013.

Greater Baltimore was responsible for nearly half of the State’s exports, amassing $5.9 billion in international sales in 2014.

Greater Baltimore benefits greatly from its proximity to the federal government. Federal expenditure is responsible for roughly 12 percent of the region’s output, a figure that has risen slowly but steadily since 2001. The typical US metropolitan region generates about 4 percent of its output through federal expenditure. This economic activity generated by the federal government is generally reliable, and was key to Greater Baltimore’s steady economy through the last decade.

Government expenditure now accounts for nearly $35 billion of output in Greater Baltimore, with over half of that total coming from federal expenditure.

While the region should seek to capitalize on its proximity to the federal government, a natural advantage to many businesses in the region, it is wise to continue to mix commercialization and entrepreneurship into the Greater Baltimore’s economic base. Attempts to manage the federal budget, like those seen during sequestration, may have too large an impact on an economy that relies heavily on government contracts.

Recently, the region and the State of Maryland have placed greater emphasis on commercialization of research and development projects that exist throughout the region as well as government technologies that could serve both public and private enterprise. In this way, firms in Greater Baltimore, and the region as a whole, have an opportunity to capitalize on the acyclical nature of the federal government while also realizing returns in the commercial market.

Maintaining a growth in the rate at which startups are formed is critical to the productivity in Greater Baltimore.

The entrepreneurial environment fostered around the region has helped to generate strong young firms. Fifty-one companies from Greater Baltimore were listed on the 2015 Inc. 5000, a comprehensive list of the fastest-growing private companies in the country. Many of the region’s fastest growing firms are in high-tech sectors; 15 of the region’s firms are in the IT services and software industries. Government services firms on the Inc. 5000 employ more people in Greater Baltimore than any other industry.

The Regional EconomyEntrepreneurship and InnovationAn emphasis on innovation and entrepreneurship has led to increased productivity and job creation in Greater Baltimore and elsewhere. Because a majority of net new jobs are created by firms less than five years old, it is important to ensure that the infrastructure for the sustained success of new ventures is in place.

Greater Baltimore and Maryland are consistently rated among the best places to launch a business. The US Chamber of Commerce rates Maryland as the #3 state in the country for innovation and entrepreneurship, noting the state’s dedication to research and development in BioHealth and Cyber Security and the abundance of STEM professionals in the State as key to its success as a top economic performer.

According to the Kauffman Foundation, Greater Baltimore ranks second among US metros for the opportunity share of new entrepreneurs, defined as the number of new entrepreneurs that were not unemployed before launching their new business. New startups in the region are overwhelmingly founded by the already-employed. The Kauffman Foundation considers this a key metric in determining where entrepreneurship is being driven by market opportunity.

The rate of startup formation, defined as the percentage of firms that are less than one year old, fell rapidly across the US following the financial and housing crises. Greater Baltimore has increased startup activity by 7.4% since 2010, compared to the US metro average of 3.1% and the national average of 3.5% over the same period.

Quality of LifeHomeownership and Home PricesGreater Baltimore residents often own their own homes. Since 2009, the rate of homeownership in Greater Baltimore has been roughly that of the US, but with more quarterly variation. Greater Baltimore has the seventh-highest rate of homeownership among the twenty-five largest US metros, and the fifth-highest rate of homeownership among select comparison markets.

The rate of homeownership in Greater Baltimore is similar to that of Washington, DC, just below that of Philadelphia, and just above homeownership rates in Boston. New York has an unusually low rate of homeownership in the Northeast Corridor, likely due to the high cost of ownership and the frequency of young adults renting in New York City.

Homeownership in Greater Baltimore is high in part because the region is relatively inexpensive compared to its large-market peers. As of Q2 2015, the median home price in Greater Baltimore is $254,500, twelfth among the twenty-five largest metro areas.

Like most major metro areas, rental properties are available throughout the region, and rent prices are similar to those in nearby metro areas. As a result, Greater Baltimore is often named among cities in which it is cheaper to buy a house than to rent.

The National Association of Realtors has established a Home Affordability Index according to metropolitan

median income, median home price, and the prevailing mortgage interest rate to determine where residents are most likey to be able to afford a home.

Among the 25 largest US metros, Greater Baltimore ranks eighth in this measure of home affordability. With a 2014 Affordability Index of 185.1, the Affordability Index indicates that a Greater Baltimore family earning the median family income and making a 20 percent down payment has 185 percent of the income necessary to qualify for a conventional loan.

Among select comparison markets, Greater Baltimore residents earn wages that are most likely to afford them the opportunity for homeownership. The region is one of the most afforable regions among these similar markets.

Quality of LifeWage Growth and Purchasing PowerGreater Baltimore residents enjoy a low cost of living relative to those living in other large US markets. While the cost of living in the Baltimore-Washington corridor has risen over the last decade, it is still well below that of the US City Average.

The Consumer Price Index (CPI) allows for measuring the price of goods over time. Prices in the Baltimore-Washington corridor and all US cities have risen nearly 55 percent since 1997, the reference year used for the Baltimore-Washington region’s CPI calculation. However, wages in Greater Baltimore have increased faster than the cost of living in the region, so that residents of the

region have more buying power today than at nearly any other time in the last twenty years.

Residents of Greater Baltimore generally have greater buying power than people in other markets due to steady inflation but faster wage growth than the average in other US cities.

Residents of the region enjoy not only access to Greater Baltimore’s picturesque waterfront and world-class health care system, but do so at a far lower cost than residents of other cities like Boston and New York.

Quality of LifeClimate & AmenitiesAs a historic port city, Greater Baltimore’s economy used to rely on water access. While the Port of Baltimore remains a strong economic engine, Greater Baltimore’s coastline has become as much a recreation feature and tourist attraction as a generator of productivity.

The region sits on the Chesapeake Bay, and six of the eight municipalities that make up the region sit on the water. In total, Greater Baltimore features over 1,680 miles of shoreline that is used for trade, recreation, sightseeing, and natural environmental areas, all of which allow for unique activities and stunning views that benefit the region’s residents.

Maryland is home to nearly 9,900 square miles of federal and state parkland, which covers over 6 percent of the state’s surface. Each municipality manages local parklands not counted in this total as well; Baltimore City alone has 7.6 square miles of green space, which

represents over 8 percent of the City’s area. Counties shown here in darker green are more dense with public park space. Because of the abundance of nearby federal, state, and local parkland, residents of Greater Baltimore and the State of Maryland can easily partake in outdoor recreational activities or simply engage with the natural environment of the region.

Greater Baltimore’s moderate climate offers a true four seasons and plenty of sunshine. The region sees an estimated 2,496.6 hours of sunshine every year, or 6.84 hours of sunshine per day. Residents of Greater Baltimore get as much sunshine as Houston and enjoy more hours of sunlight than Chicago, Detroit, and Portland. With 105 clear days every year, residents of Greater Baltimore have plenty of opportunities to enjoy the outdoor amenities available throughout the region.

Greater Baltimore is home to a number of world-class hospitals, and residents have access to a standard of care that is unmatched elsewhere. Johns Hopkins Hospital was ranked the third best hospital in the country by US News and World Report and is nationally ranked in 15 adult specialties and 10 pediatric specialties. University of Maryland Medical Center is ranked nationally in two adult specialties and is home to the R Adams Cowley Shock Trauma Center, the first facility in the world to treat shock.

Parkland Density in Maryland Counties

Jobs & InvestmentExpansion, Retention, and Relocation

New and Expanding Firms in Greater Baltimore2014 - First Half 2015

Company County Jobs Expansion or RelocationAmazon Baltimore City 3,100 NewExelon Baltimore City 1,500 Consolidation/ExpansionMcCormick & Co. Baltimore 900 RetentionTowson Square Baltimore 870 Redevelopment ProjectJohnson, Mirmiran & Thompson (JMT) Baltimore 630 ExpansionCoastal Sunbelt Produce Howard 500 ExpansionKelly & Associates Baltimore 500 ExpansionReliable Church Hill Baltimore 500 RelocationIronNet Howard 260 NewPandora Baltimore City 250 New/RelocationSocial Solutions Baltimore 200 ExpansionCisco/SOURCEfire Inc. Howard 197 ExpansionFuchs North America Carroll 160 New/RelocationBSC America Harford 150 ExpansionFlagger Force Anne Arundel 150 ExpansionGordon Food Service Inc. Harford 150 New/RelocationSmith's Detection Harford 141 ExpansionFrito-Lay, Inc. Harford 100 ExpansionLoomis Armored US Baltimore 100 ExpansionPrime AE Baltimore 100 Consolidation/RelocationExelon Harford 95 ExpansionVorbeck Materials Corp. Howard 85 ExpansionAccenture Federal Services Anne Arundel 80 ExpansionSkyline Technologies Anne Arundel 77 ExpansionCarlisle Etcetera LLC Carroll 75 ExpansionFourth Dimension Engineering Howard 75 ExpansionidX Expanding Howard 75 ExpansionPlan B Technologies Anne Arundel 65 New/RelocationPower Electronics Inc. Queen Anne's 65 ExpansionBD Diagnostic Baltimore 60 ExpansionIMC Anne Arundel 60 New/Relocation

New and expanding firms in Greater Baltimore have generated nearly 9,900 jobs in 2014 and 2015. The region has grown to be a popular destination for firms across a variety of industries, including information technology and cyber security as well as logistics and distribution. Below are thirty notable firms with new and expanding operations in the Greater Baltimore region using data provided by jurisdictions within the region.

Map of development sites

Jobs & InvestmentNew Development

1. Harbor Point Expansion & Regional Headquarters Status: In Progress/PlannedType: Office, Residential, Retail, HotelCapital Investment: $270 million in Phase ISize: 3 million square feet mixed use

Developer: Beatty Development

2. Canton CrossingStatus: Architecture ReviewCapital Investment: $1 billionSize: 1.1 million square feet officeType: Office, Residential, Retail, Recreational

Developer: COPT

As Greater Baltimore continues to grow and attract businesses, many developers have invested in new buildings for office workers, health care, and residence. Over $2 billion of renovation and new construction has been proposed, is in progress, or has been recently completed in the region, creating more space to house firms and families. Over 11.7 million square feet of office, warehouse, hospital, and research and development space is being built in Greater Baltimore.

While a great deal of development is taking place in Baltimore City, speculative warehouse space is being established in Harford County; over 90,000 square feet of office and laboratory R&D space is being built in Baltimore County, including the continued growth of the Metro Centre transit-oriented development project; and many existing projects in Anne Arundel County are being expanded to accomodate rapid growth.

A map of the largest active projects is shown to here, and each project is listed below with additional details where available. C

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ANNEARUNDEL

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5. Johns Hopkins Skip Viragh Outpatient Cancer Building Status: In ProgressCapital Investment: $100 millionSize: 184,000 square feetType: Medical

6. LifeBridge Health and Express Care Urgent Care CenterStatus: In ProgressCapital Investment: $2 millionSize: 5,000 square feetType: Medical

Business GrowthNew Development3. Canton Crossing

Status: ApprovedCapital Investment: $60 millionSize: 13-story office towerType: Office, Retail

Developer: Merritt Properties LLC

4. Baltimore CrossroadsStatus: In ProgressSize: 3 buildings, 89,310 square feet totalType: Office, Research and Development

Developer: St. John Properties

9. 300 E PrattStatus: Architecture ReviewSize: 200 hotel rooms, 400 residential units,

10,000 square feet of retailType: Residential, Hotel, Retail

Developer: Comstock Partners

10. 1 Light StreetStatus: ApprovedSize: 10 floors of office space, 14 floors of residentialType: Office, Residential

Developer: Metropolitan Partnership Limited &J. Joseph Clarke

New Development

Business Growth

7. Port 95 Industrial ParkStatus: In ProgressCapital Investment: $47.2 millionSize: 2 buildings, 500,000 square feet totalType: Warehouse

Developer: Chesapeake Real Estate Group

8. Perryman Logistics CenterStatus: In ProgressCapital Investment: $40 millionSize: 571,000 square feetType: Warehouse

Developer: Chesapeake Real Estate Group

13. Towson RowStatus: In ProgressCapital Investment: $350 millionSize: 1 million square feet totalType: Office, Residential, Hotel, Retail

Developer: Caves Valley Partners

14. Little Patuxent SquareStatus: In ProgressSize: 160 units, 160,000 square feetType: Office, Residential

Developer: Costello Construction & CORE Group

New Development

Business Growth

11. Metro CentreStatus: In ProgressCapital Investment: $50 millionSize: 200,000 square feet totalType: Office, Retail

Developer: David S. Brown Enterprises

12. Principio Business ParkStatus: PermittedSize: 1.2 million square feetType: Warehouse

W Old Philadelphia Rd7

Gonce Rd

Pulaski Highway

Belvidere Rd

Perryville Cold Storage

1 Principio Pkwy

Subject property1.2 million SF

17. 8115 Maple Lawn BoulevardStatus: In ProgressSize: 138,900 square feetType: Office

Developer: Greenbaum Enterprises

18. EastgateStatus: Seeking EntitlementsSize: 2,275,500 square feetType: Warehouse, Industrial

Developer: MRP Industrial

New Development

Business Growth

15. The Metropolitan Downtown ColumbiaStatus: In ProgressSize: 380 units, 14,000 square feet of retailType: Residential, Retail

Developer: Howard Hughes & Kettler

16. Columbia Gateway Business ParkStatus: Completed, 2015Size: 52,000 square feetType: Office

Developer: COPT & Manekin LLC

21. Arundel Preserve Town CenterStatus: In PermittingSize: 242 apartmentsType: Residential, Retail

19. Maryland Live! CasinoStatus: Expansion; In PlanningSize: 300-room hotel,

20,000 square foot conference centerCapital Investment: $150 millionType: Hotel, Retail

Developer: Cordish Cos.

20. National Business Park NorthStatus: In Progress, PlannedSize: 350,000 square feet totalType: Office

Developer: COPT

New Development

Business Growth

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2015 eagb regional report

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