cib office report

8/11/2019 CIB Office Report

1/19

Office Market ReportBALTIMORE METRO AREA

www.colliers.com/greaterbaltimore

Office Market ActivityHeats Up The Summer

MARKET DEFINITION

The Baltimore Regional office market consists of Baltimore City and the surrounding counties

Anne Arundel, Howard, Baltimore and Harford. The Colliers defined submarkets of AnnapoBWI Area, Howard County, Baltimore County West, Baltimore County North, Baltimore Cou

East and Harford County are all located within this Region. According to Costar there

currently 376 existing Class A buildings within the Baltimore Metro area with more th

45,900,000 square feet of space. In the 3rdquarter of 2014 approximately 5,800,000 squa

feet of that space was vacant or 13.1%.

MARKET OVERVIEW

Q3 2014 | OFFICE USE

Overall the Baltimore Metropolitan economy

is performing well as consumer confidence

returns, and businesses are finally

expanding. In a recent report by MoodysInvestor Services, Maryland as a whole

received a strong credit score due to the

presence of several established and

prominent education and medical

institutions. Hospital systems, in particular,

are looking for alternative spaces to house

physicians as they attempt to balance the

quality of care with newly instituted

requirements. As a result, the move away

from hospital towers, and towards physician

pavilions in suburban shopping centers, isbecoming more prevalent. As a secondary

market, Baltimore is not only a cost effective,

but also an easily accessible alternative to

New York, D.C. and Philadelphia. While

Marylands corporate tax rates present

challenges in compelling corporations to

relocate their headquarters to the state,

Pandora Jewelry and Smiths Detection have

made Maryland their North American

headquarters. Despite a spike in

unemployment rates over the summer,

Maryland ranked 12thin the country for

employment.

Activity in the market heated up over the

summer after a slow, and cold, spring.

Pandora officially announced their 88,000

lease in downtown Baltimore. Quality

Software Services signed a 128,000 sf lea

at the to-be-built Little Patuxent Square, a

area under massive redevelopment.

McCormick Spice is still in the market to

possible relocate their headquarters to

anywhere in the surrounding states, but thdecision will likely take several years to

make. The FBI is in the market for 150,000

sf of space to consolidate two offices in

Catonsville and Beltsville. Additionally, the

Federal Government is on the hunt for

130,000 sf of space in downtown Baltimor

which could be a windfall for landlords wit

buildings north of Lombard Street struggli

with vacancies rates at 30%. In total, the

MARKET INDICATORS

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

In total, the Colliers

International | Baltimore

office is currently tracking

150 tenantsin the market

looking for approximately

3,380,000 square feetof

office space in the

Baltimore Metro.


2/19www.colliers.com/marketname

SELECT LEASE SIGNINGS

TENANT LEASED SF PROPERTY ADDRESS CITY

Quality Software Services , sf Sterrett Place Columbia

Pandora Jewelry , sf W. Pratt Street Baltimore

Deloitte , sf Elkridge Landing Road Linthicum

Hudson Cook , sf Ridge Road Hanover

Ijet International , sf Admiral Cochrane Drive Annapolis

Jellyfish Online Marketing , sf S. President Street Baltimore

Clifton Larson Allen , sf Greenspring Avenue Timonium

Ibiquity Digital Corporation , sf Columbia Gateway Drive Columbia

NET ABSORPTIONNet absorption in the class A Baltimore Region office market was negative for the first timin 18 months. Class B & C space, on the other hand, had positive absorption for the firsttime in as many months, bearing in mind that 750,000 -1 million SF of Class B product issubject to adaptive re-use conversions.

RENTAL RATESAverage rental rates evened out at $21.20 psf full service, where rates have been for mosof the year. Class A office rental rates bounced back to $23.40 psf after steadily decliningover the past 12 months, while Class B & C office rental rates hovered between $19-$20 pon a full service basis.

VACANCYOverall, vacancy rates in the Baltimore Regions office market were relatively unchanged a12.5%, with Class A office vacancy rising slightly at 12.7%, while Class B&C space droppeslightly to 12%. Vacancy rates will likely decline throughout the rest of 2014 as demandseems to be keeping up with new construction.

Colliers International | Baltimore office is currently tracking 150 tenants in the market look

for approximately 3,380,000 sf of office space in the Baltimore Metro.

CYBERSECURITY UPDATE

A conversation about the strength of Marylands economy would be incomplete without

speaking on the cybersecurity industry. With incubators surrounding major educational

institutions like Towson University and UMBC, there is no shortage of innovative and

motivated tech companies working towards funding and expansion. Tech jobs grew by 10%

over the past two, indicating the desire for these firms to stay in the Baltimore metropolita

area. However, despite a large pool of recent college graduates looking for jobs, universitie

are struggling to stay current with technology curriculum. As a result, many companies

looking for candidates are finding that recent graduates are not qualified for the positions.

The ability to attract, and keep, these tech firms in and around Baltimore hinges on their

ability to hire qualified workers. In response to this problem, high school vo-tech programs

are investing time and money into cybersecurity and networking programs. The goal of

these high school programs is for incoming college freshman to have already earned their

cybersecurity certifications. The need and desire for these firms is strengthening, and

companies like Kinglet are creating interesting new ways to lease space, or in some cases

just a desk and chair for startups and businesses that are not focused on office space in

the traditional sense.

$23.00

$23.50

$24.00

$24.50

$25.00

$25.50

$26.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Class A Asking Rental Rates

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

$21.00

Q3 2013 Q4 1013 Q1 2014 Q2 2014 Q3.2014

Class B & C Asking Rental Rates

0

200400

600

800

1,000

1,200

1,400

1,600

1,800

2010 2011 2012 2013 2014

Thousands

Class A Net Absorption

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

Q3 2011 Q4 2012 Q3 2013

Class A Vacancy Rate

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE METRO AREA


3/19

QUARTERLY COMPARISON AND TOTALS - BALTIMORE METRO CLASS A

QUARTER TOTAL RBA VACANT SF VACANCY % CURRENT QABSORPTION YTDABSORPTION CURRENTCONSTRUCTION COMPLETEDDELIVERIES AVERAGERENTAL RATE

Q ,, sf ,, sf .% , sf ,, sf , sf , sf .

Q ,, sf ,, sf .% , sf ,, sf , sf .

Q ,, sf ,, sf .% ,, sf ,, sf , sf , sf .

Q ,, sf ,, sf .% , sf , sf , sf , sf .

Q ,, sf ,, sf .% , sf , sf ,, sf , sf .

UPDATE: MARKET COMPARISONS

Net Absorption New Construction

SUBMARKET/COUNTY TOTAL SF ASKING RATES VACANT SF VACANCY % CURRENTQUARTER YTD CURRENT COMPLETED

Annapolis ,, ./FS , .% -, -,

Baltimore County East ,, ./FS , .% , ,

Baltimore County West ,, ./FS ,, .% -, , ,

Baltimore County North ,, ./FS ,, .% , ,

BWI ,, ./FS ,, .% , ,

Downtown Baltimore ,, ./FS ,, .% , ,

Harford County ,, ./FS , % -, -,

Howard County ,, ./FS ,, .% , , ,

Accelerating success.

This document/email has been prepared by Colliers International for

advertising and general information only. Colliers International

makes no guarantees, representations or warranties of any kind,

expressed or implied, regarding the information including, but not

limited to, warranties of content, accuracy as to the accuracy of the

information. This publication is the copyrighted property of Colliers

International and/or its licensor(s). 2014. All rights reserved.

RESEARCHER:

Nadia Kahler

Vice President, Research &Transaction Management | Baltimore

100 North Charles Street, Suite 1710

Baltimore, MD 21201

TEL +1 443 543 1222FAX +1 443 543 0191

485 offices

in 63 countrieson 6 continentsUnited States: 146

Canada: 44Latin America: 25

Asia Pacific: 186

EMEA: 84

$2.1 billion in annual revenue

1.46 billion square feet under management

15,800 professionals

SELECT SALES ACTIVITY

PROPERTY ADDRESS BUYER SALE PRICE SF PRICE/SF

Columbia Gateway Drive Micros Systems ,, , sf .

Campbell Boulevard Douglas Legum Development ,, , sf .

Fila Way Kelly & Associates ,, , sf .

Minstrel Way Morris Weinman Company ,, , sf .

Franklin Square Drive Ikea USA ,, , sf .

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE METRO REPO


4/19

RESEARCH & FORECAST REPORTDOWNTOWN | BALTIMORE REGION


Downtown Baltimore City Office Market Repor

MARKET DEFINITION

The Baltimore City office submarket comprises the traditional Central Business District (CBD) as we

the adjacent areas of Harbor East & Fells Point, Canton, Stadium/West, and South Baltimore. Withinexpanded downtown area there is more than 13,100,000 square feet of Class A office space. In th

quarter of 2014 2,195,000 square feet of that space was vacant for a 16.75% vacancy rate.

MARKET OVERVIEW


The downtown Baltimore Class A office market

vacancy rate improved slightly in the 3rdquarter,

down from 17.11%. Pratt Street continues to be highly

sought after for office space, and currently enjoys a

12% vacancy rate. The vacancy rate is also

significantly better for properties in Harbor East,

Fells Point and Canton areas, whose overall vacancy

rates ended at 13.12%.

Buildings north of Lombard Street continue to

struggle with vacancy, ending at 31% in the 3rd

quarter. Despite this trend, average rental rates in

the CBD have not fluctuated more than a few dollars

per square foot within the past 10 years. While some

areas, such as Harbor East, may command rents in

the $30s on a NNN basis, some buildings such as

20 South Charles Street and 1 North Charles Street

are quoting rental rates in the $16-$17/SF fullservice range.

Several buildings came on the market for sale, an

indication of increased investor appetite in the area.

111 Light Street, 250 W. Pratt Street and 300 E.

Lombard Street hit the market, all with hefty price

tags. 101 N. Charles Street also is for sale after being

purchased a little over a year ago. Significant lease

activity in the market includes Pandora Jewelry,

finalizing their 88,000 SF lease at 250 W. Pratt

Street. Behavioral Health System Baltimore sign

22,000 SF lease at 1 N. Charles Street. Advertis

com announced they would move their Locust P

headquarters to the Natty Boh Tower in Brewers

taking 45,000 SF. Jellyfish Online Marketingexpanded and renewed in 14,600 sf at 250 S.

President Street.

The city had a busy summer with the Star Span

Spectacular, the Horseshoe Casino opening and

various festivals. That momentum should contin

throughout the rest of the year as construction

continues on Harbor Point and demolition started

the former Mechanic Theatre. The federal

government is hunting for 100,000-130,000 SF

space in the CBD, which could present anopportunity for buildings north of Lombard Stree

absorb some of the abundant vacancy being

carried. An increase in investment sales and larg

lease signings point to a return of pre-recession

health in Downtown Baltimore.

ARKET INDICATORS

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE


5/19

Accelerating success

This document/email has been prepared by Collier

International for advertising and general informatio

only. Colliers International makes no guarantees

representations or warranties of any kind, expresse

or implied, regarding the information including, but no

limited to, warranties of content, accuracy as to th

accuracy of the information. This publication is th

copyrighted property of Colliers International and/o

its licensor(s). 2014. All rights reserved.

UPDATE

RESEARCHER:

Nadia KahlerVice President, Research &

Transaction Management | Baltimore

100 North Charles Street

Suite 1710Baltimore, MD 21201

TEL +1 443 543 1222FAX +1 443 543 0191

485 offices in63 countries on6 continentsUnited States: 146Canada: 44

Latin America: 25

Asia Pacific: 186EMEA: 84


1.46 billion square feet under

management


0

50

100

150

200

250

300

350

400

2011 2012 2013 2014

Thousand

s

Net Absorption

$19.00

$19.50

$20.00

$20.50

$21.00

$21.50

$22.00

$22.50

$23.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Asking Rental Rates

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Class A Vacancy Rates

CBD

Pratt Street

Harbor East/Locust

Point/Canton

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE DOWNTOWN


6/19

RESEARCH & FORECAST REPORTANNAPOLIS | BALTIMORE REGION



Annapolis Market Report

MARKET DEFINITION

The Annapolis submarket is located approximately 25 miles south of Baltimore City and 30 m

east of Washington, D.C. The City of Annapolis serves as the Capital of the State of Maryland,

county seat of Anne Arundel County and is also the home of the United States Naval Academy. T

local office market consists of 159 properties and more than 5,500,000 square feet of space

the 3rdquarter of 2014 approximately 840,000 square feet of this space was vacant.

MARKET OVERVIEW

Negative absorption in the Annapolis office market during the 3 rdquarter resulted in the vacanc

rates rising from 12.8% to 13.8%. Multistory building vacancy rates also rose to 12.3%, as did

single story buildings rising to 21.1%, the highest vacancy rates in several years. Despite rising

vacancy, average rental rates are on the rise with class A office averaging $25.00 PSF on a fu

service basis, while Class B remained steady at $20.50 PSF.

The Annapolis office market was relatively quiet during the 3 rdquarter, although there were

several transactions of merit to report. 1812-1820 Margaret Avenue sold for $4,300,000. Ijet to

approximately 25,000 SF at 185 Admiral Cochrane Drive. 201 Defense Highway had an active

quarter signing Whats Up? Magazine for 4,300 SF, Tech Group for 4,946 SF and Kure Pain

Management for 6,600 SF. Hair Club for Men signed a 4,000 SF lease at 1730 West Street and

is also expanding in surrounding markets.

MARKET INDICATORS

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE













UPDATE

RESEARCHER:





TEL +1 443 543 1222FAX +1 443 543 0191


Latin America: 25




management


-100

-80

-60

-40

-20

0

20

40

60

80

100

120

2010 2011 2012 2013 2014

Thousands

Net Absorption

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%16.0%

18.0%

20.0%

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014

Vacancy Rate

$24.00

$24.50

$25.00

$25.50

$26.00

$26.50

$27.00

Q4 2013 Q1 2014 Q2 2014 Q3 2014

Multistory Asking Rental Rates

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

$26.00

$28.00

$30.00

Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014

Single Story Asking Rental Rates

Office (FS)

Flex (NNN)

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE REGION - ANNAPOLIS


8/19

RESEARCH & FORECAST REPORTBALTIMORE COUNTY EAST | BALTIMORE REGION



MARKET INDICATORSQ4 2013 Q1 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

Baltimore County East Market Report

MARKET DEFINITION

The Baltimore County East submarket includes Baltimore County suburban areas located east

Baltimore City. The submarket is defined by the I-95 corridor as well as I-695, and includes local markets of White Marsh, Perry Hall, Dundalk and Essex. The area encompasses one of

smaller regional office use submarkets with 110 buildings and just over 3,600,000 square feet

space. In the 3rdquarter of 2014 approximately 520,000 square feet of that space was vacan

MARKET OVERVIEW

Vacancy rates in the Baltimore County East office market declined slightly to 14.4% and with

little new construction, planned vacancy is expected to decrease. Multistory building vacancy

declined to 12.6%, as did single story buildings to 16%, and is expected to continue to improve

Overall rental rates for office space range from $22.50-$25.50 on a full service basis, with th

limited number of class A buildings in the submarket fetching mid-high $20s full service, andClass B space averaging $19-$20 full service.

There were several notable sales transactions including 8 buildings sold by COPT for

$28,750,000. Douglas Legum Development picked up 5020 Campbell Boulevard for

$12,400,000, while IKEA paid $10,450,000 for 9930 Franklin Square Drive. Hill Management

bought two of the buildings, 4969 & 4979 Mercantile for $5,900,000. While leasing activity w

somewhat slow, Creative Optionsrenewed their 10,800 SF lease at 9411 Philadelphia Road.













UPDATE

RESEARCHER:





TEL +1 443 543 1222FAX +1 443 543 0191

-20

0

20

40

60

80100

120

140

160

2010 2011 2012 2013 2014

Thousands

Net Absorption

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%21.0%

22.0%

23.0%

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014

Vacancy Rate

$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


Office (FS)

Flex (NNN)


Latin America: 25




management


RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE COUNTY EAST


10/19

RESEARCH & FORECAST REPORTBALTIMORE COUNTY NORTH | BALTIMORE REGION



Baltimore County North Market Repor

MARKET DEFINITION

The Baltimore County North submarket is located in the northern areas of Baltimore County a

borders the northern end of Baltimore City. The submarket incorporates major thoroughfarincluding the I-83 corridor as well as I-695. In addition to the local submarkets of Towson a

Timonium, the area also includes Hunt Valley, Cockeysville and Sparks. The overall Baltim

County North market contains 276 properties and just over 15,100,000 square feet of space

the 3rdquarter of 2014 over 1,800,000 square feet of that space was vacant.

MARKET OVERVIEW

Office vacancy rates for the northern part of Baltimore County have steadily declined

throughout 2014, ending the 3rdquarter at 12.1%. According to Costar, Inc., overall full servic

office rental rates have also declined over the past 2 years ending at $17.35 PSF. Class A

rental rates reportedly declined to $21.90 PSF, while Class B rental rates were mostly

unchanged throughout the year ending at $16.00 PSF. Single story building vacancy rates

rose slightly to 13.6%, but still considerably less than the same time a year ago. Multistory

building vacancy rates continued to decline to 12%, helped by positive absorption and little n

construction.

Leasing activity included Adolph & Kalkstein signing a 4,400 SF lease at 200 E. Joppa Road

and The Financial Consulate, LLC leased 6,500 SF at 201 International Drive. Greenspring

Wealth Management expanded to 6,000 SF at 501 Fairmount Avenue. Hair Club for Mentoo

4,240 SF at 110 West Road, while Endoscopy Center of North Baltimorerenewed and

expanded into 6,100 SF at 1220 E. Joppa Road. Making use of vacant retail space, Carchex

renewed their office lease at Hunt Valley Towne Center for 5,850 SF. It was announced that

Kelly & Associatespurchased 1 Fila Way for $9,000,000 to house their headquarters.

MARKET INDICATORS

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE













UPDATE

RESEARCHER:





TEL +1 443 543 1222FAX +1 443 543 0191


Latin America: 25




management


RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE COUNTY NORTH

-200

-150

-100

-50

0

50

100

150

200

2010 2011 2012 2013 2014

Thousands

Net Absorption

8.0%

0.0%

12.0%

14.0%

16.0%

18.0%

2012 2013 2014

Vacancy Rate

$19.00

$19.20

$19.40

$19.60

$19.80

$20.00

$20.20

$20.40

$20.60

$20.80

$21.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


Office (FS)

Flex (NNN)


12/19

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

RESEARCH & FORECAST REPORTBALTIMORE COUNTY WEST | BALTIMORE REGION



MARKET INDICATORS

Baltimore County West Market Repor

MARKET DEFINITION

The Baltimore County West submarket is located in suburban areas of Baltimore Cou

bordering the western and northwestern portions of Baltimore City. The submarket is definby I-695 and Reisterstown Road corridors. It includes the local markets of Owings Mi

Pikesville, Woodlawn, Catonsville and Arbutus and consists of 295 buildings and more th

13,000,000 square feet. In the 3rdquarter of 2014 approximately 2,200,000 square feet of t

space was vacant.

MARKET OVERVIEW

Overall office vacancy rates in Baltimore County West were relatively unchanged at 16.8%, b

with several impending deliveries, that number will likely rise. Single story building vacancy

dropped to 16.5%, as did multistory building vacancy which also improved to 16.6%, the lowe

it has been since the first half of 2012. Average rental rates for the submarket were relative

unchanged at $19.67 PSF, full service. Average Class A office rental rates have not changed

the past 12 months hovering between $24-$22 PSF full service, as were class B rates whic

have been between $19-$18 PSF for the last 24 months.

Leasing in the 3rd quarter was relatively slow after strong absorption in the first half of the

year. That said, the construction surrounding Foundry Row and Metro Centre is expected to

absorb quickly, despite historically high vacancy rates in the Owings Mills submarket. With

regards to investment sales, Cabot Properties purchased 7120-7132 Ambassador Road for

$28,500,000, and 757 Frederick Road reportedly sold for $4,250,000.













UPDATE

RESEARCHER:





TEL +1 443 543 1222FAX +1 443 543 0191


Latin America: 25




management


-150

-100

-50

0

50

100

150

200

2010 2011 2012 2013 2014

Thousands

Net Absorption

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 20

Vacancy Rate

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

$21.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

u s ory s ng en a a es

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

$18.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


Office (FS)

Flex (NNN)

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE COUNTY WEST


14/19

RESEARCH & FORECAST REPORTBWI AREA | BALTIMORE REGION



BWI Area Market Report

MARKET DEFINITION

The BWI Area submarket is located around the Baltimore/Washington Thurgood Marsh

International Airport in northern Anne Arundel County. The submarket includes Fort Geor

Meade, NSA headquarters, Linthicum, Hanover, Glen Burnie, Elkridge and small portions

Howard County bordering BWI Airport to the west. This market consists of 197 existing propert

and more than 12,800,000 square feet of space. In the 3rd quarter of 2014 just less th

1,500,000 square feet of this space was vacant.

MARKET OVERVIEW

Overall vacancy rates in the BWI office market dropped in the third quarter to 11.3% after

spiking briefly in the second quarter. Multistory building vacancy rates continued to improve

11.1%, and are anticipated to decline further throughout the next several quarters due to lacknew construction. Single story building vacancy rates also dropped to 11.8%. Overall office

rental rates hovered around $24.00 PSF on a full service basis, which has been the

approximate cost for the past five years. Class A office average rental rates continued to

decline to $26.70 PSF, while class B office space increased to $22.00 PSF, both full service

Leasing activity was relatively slow in this submarket throughout the 3rdquarter, but there

were some notable transactions. Northrop Grumman announced they would build a 25,000

facility behind their existing campus. The GSA signed a 15,294 SF lease at 939 Elkridge

Landing Road, and Deloitte signed a 15,012 SF least at 901 Elkridge Landing Road. Hudson

Cooksigned a 20,536 SF lease at 7037 Ridge Road in Hanover.

MARKET INDICATORS

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE




UPDATE


Latin America: 25




management


0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012 2013 2014

Thousands

Net Absorption

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%18.0%

19.0%

20.0%

Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014

Vacancy Rate

$24.00

$24.50

$25.00

$25.50

$26.00

$26.50

$27.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


Office (FS)

Flex (NNN)

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE REGION - BWI AREA










RESEARCHER:





TEL +1 443 543 1222FAX +1 443 543 0191


16/19

RESEARCH & FORECAST REPORTHARFORD COUNTY | BALTIMORE REGION



Harford County Market Report

MARKET DEFINITION

The Harford County submarket is located approximately 25 miles northeast of Baltimore C

and is defined by the I-95 and Route 1 Corridors. The area includes the local markets of Bel AAberdeen and Havre de Grace. The Aberdeen Proving Ground is also located in Harford Coun

This market consists of 131 properties and just over 4,100,000 square feet of existing space

the 3rdquarter of 2014 about 940,000 square feet of that space was vacant.

MARKET OVERVIEW

Vacancy rates in the Harford County submarket have consistently risen over the past four

years, ending the 3rdquarter of the year at 23%. Overall average rental rates fluctuated

between $22-$23 PSF on a full service basis. Class A rental rates dropped to $27.50, but

otherwise have been relatively stable over the past 24 months, as was Class B space which

stabilized around $21.00 PSF full service. Single story building average vacancy rates reach

an all time high at 23.2%, while multistory building vacancy rates hovered around 24% for

most of the year.

Although the Harford County market has statistically been plagued by over development and

higher then average vacancy rates, there were some notable transactions in the 3rd quarter. J

Vinton Schafer & Sons signed a 14,740 SF lease at 1309 Continental Drive. DRS Technologi

signed on for 10,000 SF at St. John Properties development at The GATE. UIC Technical

Servicessigned a 4,800 SF lease at 103 Bata Boulevard, while Harford County Health

Department renewed their lease at 120 Hays Street for 4,000 SF. While there were no

investment sales to speak of in this market, several buildings went on the market such as the

Waters Edge campus and 120 Hayes Street.

MARKET INDICATORS

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE













UPDATE

RESEARCHER:





TEL +1 443 543 1222FAX +1 443 543 0191


Latin America: 25




management


-100

-50

0

50

100

150

200

250

300

2010 2011 2012 2013 2014

Thousands

Net Absorption

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%23.0%

25.0%

27.0%

Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014

Vacancy Rate

$22.00

$22.50

$23.00

$23.50

$24.00

$24.50

$25.00

$25.50

$26.00

$26.50

$27.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


$9.00

$11.00

$13.00

$15.00

$17.00

$19.00

$21.00

$23.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


Office (FS)

Flex (NNN)

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE REGION - HARFORD COUNTY


18/19

RESEARCH & FORECAST REPORTHOWARD COUNTY | BALTIMORE REGION



MARKET INDICATORS

Q2 2014 Q3 2014

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

Howard County Market Report

MARKET DEFINITION

The Howard County submarket is located between Baltimore MD and Washington, DC along

interstate I-95 corridor. The submarket is comprised of 383 buildings and about 18,340,0square feet of space. In the 3rdquarter of 2014 more than 2,000,000 square feet of that spa

was vacant. The submarket boasts a sturdy Landlord pool with REITs and local developers su

as Corporate Office Properties Trust, First Potomac Management, LLC, General Grow

Properties, Greenfield Partners, Abrams Development and Merritt leading the pack.

MARKET OVERVIEW

Overall vacancy rates dropped to 11.3%, where it has hovered for most of the year. Single sto

office building vacancy rates also stayed relatively the same at 11%, while multistory office

buildings show a similar trend ranging between 11-12%. Overall rental rates average about

$24.00 PSF full service, and have been relatively stable for the past 2 years. Average Class

office rates increased marginally to $25.50 PSF full service, as Class B office rental rates

declined slightly to $23.30 PSF.

Howard County in general enjoys lower vacancy rates and strong absorption due to the

strategic location between Baltimore and Washington, D.C. Yumkas, Vidmar & Sweeney

opened an additional office at 10211 Wincopin Circle to complement their Annapolis presence

QSSI, a Maryland health exchange contractor, signed a 128,000 SF lease at the to-be-built

Little Patuxent Square. Snyder Kearney signed an 11,700 SF lease at 10320 Little Patuxent

Parkway. Ibiquity Digital Corporationrenewed their lease at 6711 Columbia Gateway Drive f

18,900 SF, and UNUMsigned an 8,500 SF lease at 8601 Robert Fulton Drive. Morris Weinm

Company purchased Waterview Office Center for $4 million, or $85.75 PSF. Additionally,

Micros Systems purchased 7031 Columbia Gateway Drive, which they already occupied, for

$59.5 million following the news that they were acquired by Oracle Corporation.


19/19











UPDATE

RESEARCHER:





TEL +1 443 543 1222FAX +1 443 543 0191


Latin America: 25




management


0

50

100

150

200

250

300

350

400

450

2010 2011 2012 2013 2014

Thousands

Net Absorption

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014

Vacancy Rate

$24.00

$24.50

$25.00

$25.50

$26.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014


Office (FS)

Flex (NNN)

RESEARCH & FORECAST REPORT | Q3 2014 | OFFICE USE | BALTIMORE REGION - HOWARD COUNTY

cib office report

Documents