colliers intl. office reports july 2011

8/6/2019 Colliers Intl. Office Reports July 2011

1/18

O ce Market ReportBALTIMORE METRO AREA

. ollier . om/baltimore

Ofce Market Rebound Continues in 2011

MARkET OvERvIEwThe Baltimore O ce market showed signs o growth in the frst hal o 2011, building o momentum gained at the close o 2010. The market generally maintained rental rates with decline in vacancy. The total vacancy rate dropped rom 15.5% in Q3 2010 to 14.7%, and nabsorption remained steady with over 600,000 square eet o positive absorption thus athis year. New construction and deliveries remained low, while average rental rates or aspaces dropped slightly and remain below $22.00 per square oot on a ull service basisClass A rental rates remain just below $25.00 per square oot on a ull service basis.

nET ABsORpTIOnNet absorption or o ce space has been steady in 2011, with over 600,000 square eet opositive absorption in the frst hal o 2011. This continues the positive trend seen toward thend o 2010, and i economic conditions remain stable than vacancies should slowly declinClass A space accounted or most o the positive trend in the market, while Class B absorptiowas minimal and Class C was negative. This movement rom Class B & C space to Classspace represents the trend o o ce tenants taking advantage o lower rents and largerconcessions in a ight to quality ollowing the recession.

vAcAncyBaltimores o ce vacancy rate dropped in Q2 2011 to 14.7% a ter sitting above 15% or muo 2010. This indicates a possibility that the market may have reached its peak in terms ooverall vacancy rates in 2010 and will continue to remain steady or decline in the near uturas long as economic conditions remain stable, absorption remains steady, and deliveriesremain low. On a closer look at vacancy in the market, Class A properties have droppesignifcantly, alling rom a 10 year high o 18% in Q3 2010 to 17.1% in Q2 2011. Class Bproperties continue to maintain vacancy levels around 13% a ter dropping in 2010.

Q2 2011 | OFFICE USE

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

02006 2007 2008 2009 2010 2011

net Ab or tio16.0%

15.0%

14.0%

13.0%

12.0%

11.0%

10.0%2006 2007 2008 2009 2010 Q2 2011

va a Rate

MARkET IndIcATORs

Q1 2011 Q2 2011

vAcAncy

nET ABsORpTIOn

cOnsTRucTIOn

REnTAL RATE


2/18

REsEARchER:

Sean ONeillResearch Analyst | Baltimore7172 Columbia Gateway Drive

Suite 400Columbia, MD 21046

TEL +1 443 297 9016FAX +1 443 543 0191

. ollier . om/mar et ame

Accelerating success.

sALEs AcTIvITy

pROpERTy AddREss sELLER/BuyER sALE pRIcE sF

Maple Lawn Boulevard( properties)

St. John / Greenebaum & Rose , , ,

W Pennsylvania Avenue Western Development /Capmark Finance

, , ,

Security Boulevard( properties)

Colony Realty /Government Properties

, , ,

Stan ord Boulevard Howard County / W.P. Carey , , ,

West Road LaSalle Investment Management/TA Associates Realty

, , ,

sELEcT LEAsE sIGnInGs

TEnAnT LEAsEd sF pROpERTy AddREss cITy

Miles & Stockbridge , Light Street Baltimore

PNC , East Pratt Street Baltimore

TESSCO , West Padonia Road Timonium

FBI , Lord Baltimore Drive Woodlawn

GSA , Woodlawn Drive Woodlawn

$25.50

$25.40

$25.30

$25.20

$25.10

$25.00

$24.90

$24.80

$24.70

$24.60

$24.50Q3 2010 Q4 2010 Q1 2011 Q2 2011

cla A A i g Re tal Rate

$22.00

$21.90

$21.80

$21.70$21.60

$21.50

$21.40

$21.30

$21.20

$21.10

$21.00Q3 2010 Q4 2010 Q1 2011 Q2 2011

O erall A i g Re tal Rate

REnTAL RATEsAsking rental rates dropped slightly in Q2, while net absorption improved andvacancy declined. Overall asking rents dropped rom just under $22.00 persquare oot in Q3 2010 to just over $21.50 per square oot in Q2 2011. A terreaching a 10 year high in Q1 2008 rents have steadily declined over the past

3 years, but seem to have stabilized over the last year generally rangingbetween $21.50 and $22.00 per square oot. Class A rents have maintainedtheir levels (in the $25 per square oot range) a bit more consistently thanClass B & C rents over the past ew years, but in Q2 2011 they dropped totheir lowest levels since 2006. Having said that, absorption or Class A wasstrong in Q2 and vacancy dropped which could lead to an increase in askingrents in the near uture.

sALEs AcTIvITyTallying Baltimore o ce building sales, activity rose during the frst hal o2011. In terms o total dollar sales volume or buildings over 10,000 square

eet, 2011 has already surpassed 2010 by a measure o $270 million in 2011to just $220 million or all o 2010. Since January, fve o ce transactionswith a sale price o over $15,000,000 closed with a total volume oapproximately $167,000,000. The fve transactions totaled 1,074,000 SFwith an average price o $155/ PSF. That compares to just our transactionso that size in 2010 totaling approximately $112,000,000 with an averageprice o $161/SF.

This document/email has been prepared by Colliers International or advertising and general in ormation only. Colliers International makes no guarantees,representations or warranties o any kind, expressed or implied, regarding the in ormation including, but not limited to, warranties o content, accuracy asto the accuracy o the in ormation. This publication is the copyrighted property o Colliers International and/or its licensor(s). 2011. All rights reserved.

rESEarCh & FOrECaSt rEpOrt | Q2 2011 | office use | baltimore


3/18

20.0%

18.0%16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%2006 2007 2008 2009 2010 Q2 2011

V c cy R te

& f annapolis | BalTiMoRE REGion

.c er .c m/b t m re

Annapolis Market Report

MaRkET oVERViEw

he nnapolis submarket is located approximately 26 miles south o Baltimore ity and 30 miles eao Washington D . he ity o nnapolis serves as the tate o Maryland, the county seat o rundel ounty and is also the home o the United tates Naval cademy and t Johns ollege. h

economy o nnapolis is driven by government, tourism, medical uses and the maritime industry. harea also bene ts rom a very stable work orce, a relatively wealthy population and a very activmaritime community. he local o ce use market consists o 151 buildings and just over 5,000,000square eet o space.

Vacancy in the nnapolis submarket has risen substantially over the past 5 years, but has recentlystabilized. Due to the economic downturn and both tate and local government budget short allsabsorption in the market has been very slow dating back to 2007. With over 600,000 square eet odeliveries in the market between 2006-2009, low demand and the slow rate o absorption causedvacancy to rise rom 3.8% in Q3 2006 to their current rate o 13.7%. ecently, new deliveries hav

been at and vacancy appears likely to stabilize and decline slowly over the next ew years. skinrental rates over the past year have declined slightly, particularly in multistory buildings. urrentlymultistory buildings are ranging rom $20 per square oot ull service or lass B buildings to a ho over $40.00 per square oot ull service or lass buildings on Main treet. ingle story oor ex buildings with o ce uses are ranging rom $12.00 per square oot on a net basis to $22.00per square oot ull service depending on the quality and location o the building.


250

200

150

100

50

0

-50

-100

-1502006 2007 2008 2009 2010 Q2 2011

updaTEnet ab r t

MaRkET indi aToRs

Q1 2011 Q2 2011

Va an Y

nET aBsoRpTion

onsTRu Tion

REnTal RaTE


4/18

REsEaR hER:

Baltimoreean Neillesearch nalyst

7172 olumbia Gateway Driveuite 400olumbia, MD 21046

TEl +1 443 297 9016FaX +1 443 543 0191

his document/email has been prepared by olliers International or advertising and general in ormation only. olliers International makes no guarantees,representations or warranties o any kind, expressed or implied, regarding the in ormation including, but not limited to, warranties o content, accuracy as to theaccuracy o the in ormation. his publication is the copyrighted property o olliers International and/or its licensor(s). 2011. ll rights reserved.

.c er .c m/m r et me

ccelerating success.

updaTE ne s y, ab r t V c cy R te

salEs a TiViTY

pRopERTY addREss sEllER/BuYER salE pRi E sF

forbes treet ngel Dental are/ Monterrey ve LL , , ,

updaTE ne s y, ab r t V c cy R te

laRGEsT lEasE siGninGs

pRopERTY addREss TEnanT lass sF

West treet Morgan tanley ,

dmiral ochrane Drive sisan elie ,

forest Drive nne rundel ealth ervices ,

$30.00

$29.80

$29.60

$29.40

$29.20$29.00

$28.80

$28.60

$28.40

$28.20

$28.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

M t -st ry a g Re t R te

$30.00

$25.00

$20.00

$15.00

$10.00

$5.00

$ 0.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

s g e-st ry a g Re t R te

512 o ces in61 countries on6 continentsUnited tates: 125

anada: 38Latin merica: 18

sia aci c: 214M : 117

$1.5 billion in annual revenue

978.6 million square feet undermanagement

Over 12,000 professionals

rESEarCh & FOrECaSt rEpOrt | Q2 2011 | O c | O


5/18

& p C UN Y | G N

www.colliers.com/baltimore

Baltimore County East Market Report

k v v

he Baltimore ounty ast submarket includes the eastern Baltimore ounty suburbs of Baltimoreity. he submarket is de ned by the I-95 corridor as well as I- 95 and includes the local markets ofWhite Marsh, perry all, Dundalk and ssex. Major drivers of o ce s ace in the Baltimore ount

ast submarket include large manufacturers as well as close roximity to berdeen proving Groundand local businesses including nancial, insurance and health care roviders. Due in large art to thedevelo ment of the ouse com any- lanned community of White Marsh, this market has growngreat deal over the ast 25 years and continues to grow as new jobs come to berdeen provingGround through the Base ealignment and losure (B ) rogram. he area encom asses one ofthe smaller regional o ce use submarkets with 107 buildings and under 4,000,000 square feet ofs ace.

Vacancy in the Baltimore ounty ast submarket has been fairly volatile over the ast 5 years, but hasrecently trended downward. he submarket saw over 525,000 square feet of s ace delivered from200 -2009. Given the small size of the submarket, the large amount of newly added s ace caused

vacancy to rise quickly from 13% to over 21% during that time eriod. owever, since the beginninof 2010 vacancy has dro ed and now sits at 18. %. New deliveries have leveled o and there haonly been two construction starts since Q3 200 . bsor tion has been slow thus far in 2011, but wassteady over the ast three years. ingle story asking rental rates have remained at over the astyear, while multistory rents have dro ed from an average of almost $19.50 er square foot on a fulservice basis to just under $17.50. urrently, multistory buildings are ranging from $14 er squarefoot full service for lass B buildings to a high of $23.00 er square foot full service for lass buildings. ingle story o ce or ex buildings with o ce uses are ranging from $12.00 to $17.00 ersquare foot on a net basis.


200

150

100

50

0

-50

-1002006 2007 2008 2009 2010 Q1 2011

UpdNet bsor tion

23.0%22.0%

21.0%

20.0%

19.0%

18.0%

17.0%

16.0%

15.0%

14.0%

13.0%2006 2007 2008 2009 2010 Q1 2011

vacancy ate

k Nd C

Q1 2011 Q2 2011

v C NCY

N p N

C N UC N

N


6/18

Ch :



+1 443 297 901F X +1 443 543 0191

www.colliers.com/mar etname


Upd New u ly, bsor tion an vacancy ates

C v Y

p p Y dd / UY p C F

6 Merritt Boulevard ealthcare ealty rust/ oulger-pratt ,6 , ,

Upd New u ly, bsor tion an vacancy ates

G GN NG

p p Y dd N N C F

6 rossroads ircle United erebral palsy of entral Maryland B ,

$20.00

$19.50

$19.00

$18.50

$18.00

$17.50

$17.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

ulti- tory s ing ental ates

$30.00

$25.00

$20.00

$15.00

$10.00

$5.00

$ 0.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

ingle- tory s ing ental ates

512 o ces in1 countries on continents

United tates: 125anada: 38

Latin merica: 18sia paci c: 214M : 117




his document/email has been re ared by olliers International for advertising and general information only. olliers International makes no guarantees,re resentations or warranties of any kind, ex ressed or im lied, regarding the information including, but not limited to, warranties of content, accuracy as to theaccuracy of the information. his ublication is the co yrighted ro erty of olliers International and/or its licensor(s). 2011. ll rights reserved.



7/18

18.0%

17.0%

16.0%

15.0%

14.0%

13.0%

12.0%

11.0%

10.0%

9.0%

8.0%2006 2007 2008 2009 2010 Q22011

V c ncy R

& f pbaltimoRe CoUNtY NoRth | baltimoRe ReGioN

.c rs.c / r

Baltimore County North Market Report

maRket oVeRView

he Baltimore ounty North submarket is located in the owson and northern areas o Baltimorounty bordering the northern ortion o Baltimore ity. he submarket is de ned by the I-8corridor as well as I-695. In addition to the local markets o owson and imonium, the area alsincludes unt Valley, ockeysville and arks. Major drivers o o ce s ace in the Baltimore ounNorth submarket include owson University, major cor orations such as Mc ormick & om an

, K I echnologies, and MBN , and the regional medical centers t. Jose h Medical entGreater Baltimore Medical enter, and the he ard pratt ealth ystem. In addition to thesem loyers and close roximity to major regional highways, the area also includes some o the regionmost attractive retail and entertainment locations including owson own enter and unt Valley

own entre. his submarket contains 273 ro erties and just over 15,000,000 square eet o s ace

Vacancy in the Baltimore ounty North submarket has remained airly consistent over the ast years, but has recently been trending u ward. he submarket saw 175,000 square eet o s acedelivered since 2008 while absor tion has simultaneously remained slow during that eriod. his has

had the e ect o vacancy rates slowly rising rom 12.3% in Q1 2008 to its current rate o 14%. Nedeliveries have leveled o and there has only been one major construction start since Q3 2006 in thearea, and as a result vacancy should not increase as long as absor tion icks u over the next ewquarters. ingle story asking rental rates have remained airly consistent over the ast year, butmultistory rents have dro ed slightly rom an average o just over $21 er square oot on a service basis in Q3 2010 to just over $20 er square oot. urrently, multistory buildings are ranging

rom $17 er square oot ull service or lass B buildings to a high o $27.00 er square ooservice or lass buildings. ingle story o ce or ex buildings with o ce uses are ranging rom$12.00 to $17.00 er square oot on a net basis.


700600

500

400

300

200

100

0

-100

-2002006 2007 2008 2009 2010 Q2 2011

UpdateN a s r n

maRket iNdiCatoR

Q1 2011 Q2 2011

VaCaNCY

Net ab oRptioN

CoN tRUCtioN

ReNtal Rate


8/18


9/18

market indi at rs

Q1 2011 Q2 2011

Va an Y

net aBs rPti n

nstru ti n

renta rate

& f pBa tim re untY est | Ba tim re reGi n

www.coll .co /b l o

Baltimore County West Market Report

market VerVie

he Baltimore ounty West submarket is located in suburban areas o Baltimore ounty borderinthe western and northwestern ortions o Baltimore ity. he submarket is de ned by the westernI-695 and eisterstown oad corridors. It includes the local markets o wings Mills, pikesvillWoodlawn, atonsville and rbutus. Major drivers o o ce s ace in the Baltimore ounty Wesubmarket include the ocial ecurity dministration headquarters in Woodlawn, he University oMaryland Baltimore ounty located in rbutus, and a number o nancial and insurance businessein the wings Mills area including . owe price, arefirst and Balt imore Li e. hese major em loyeas as well as easy access to I-695, eisterstown oad and I-95 contribute to the areas stable o ceuse market o 295 buildings and almost 13,000,000 square eet.

Vacancy in the Baltimore ounty West market has slowly increased since 2007. he submarket sawover 500,000 square eet o s ace delivered in 2008 and 2009 while the economic downturnsimultaneously caused over 250,000 square eet o negative absor tion in 2009 and 2010. hese

two actors had a combined e ect o the vacancy rate increasing rom 11.7% in Q4 2007 to a high16.0% in Q4 2010. owever, new deliveries have leveled o , absor tion has im roved in 2011, anvacancy levels are currently down to 15.3%. sking rental rates have remained very stable over the

ast year but range a great deal de ending on location and the age o the building. Multistory buildinare ranging rom $16 er square oot ull service or lass B building to a high o $32.00 er squ

oot ull service or lass buildings. ingle story o ce or ex buildings with o ce uses are ranginrom $10.00 to $18.00 er square oot on a net basis.


35030025020015010050

0-50

-100-150-200

2006 2007 2008 2009 2010 Q2 2011

uPdaten ab o p o

18.0%

17.0%

16.0%

15.0%

14.0%

13.0%

12.0%

11.0%

10.0%

9.0%

8.0%2006 2007 2008 2009 2010 Q2 2011

V c cy r


10/18

resear her:



te +1 443 297 9016FaX +1 443 543 0191

www.coll .co /


uPdate n w s pply, ab o p o V c cy r

sa es a tiVitY

Pr PertY address se er/BuYer sa e Pri e sF

ecurity Boulevard ( ro erties) olony ealty/Government pro erties Income rust , , ,

Windsor Boulevard preston partners/ JUf III preston ordoba , , ,

uPdate n w s pply, ab o p o V c cy r

arGest ease siGninGs

Pr PertY address tenant ass sF

Lord Baltimore Drive fBI ,

Woodlawn Drive G ,

$20.00

$19.80

$19.60

$19.40

$19.20$19.00

$18.80

$18.60

$18.40

$18.20

$18.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

m l -s o y a g r l r

$20.00

$18.00

$16.00

$14.00

$12.00

$10.00

$8.00

$6.00

$4.00

$2.00

$0.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

s gl -s o y a g r l r



sia paci c: 214M : 117




his document/email has been re ared by olliers International or advertising and general in ormation only. olliers International makes no guarantees,re resentations or warranties o any kind, ex ressed or im lied, regarding the in ormation including, but not limited to, warranties o content, accuracy as to theaccuracy o the in ormation. his ublication is the co yrighted ro erty o olliers International and/or its licensor(s). 2011. ll rights reserved.



11/18

& f p | LT MO G ON


BWI Area Market Report

M k T Ov v

he BWI rea submarket is located around the Baltimore/Washington hurgood Marshall Internationair ort in northern nne rundel ounty. he submarket includes fort George Meade, Nheadquarters, Linthicum, anover, Glen Burnie, lkridge and small ortions o oward oubordering BWI ir ort to the west. he BWI rea submarket has been signi cantly im acted by o cgrowth around N and fort Meade, which has recently been driven by the im acts o the U.Militarys Base ealignment and losure (B ) rogram. lose roximity to BWI ir ort, Nfort Meade, I-95, Baltimore and Washington D su orts the areas strong o ce use market o 195buildings and over 12,000,000 square eet.

Vacancy in the BWI rea market increased rom the end o 2007 through 2010, but much o tadditional vacant s ace is due to newly delivered s ace over the ast 5 years in antici ation oincreasing market demand due to B . from 2006 through 2009 there was an average o over650,000 square eet o new o ce use s ace delivered in the BWI market every year. While new

deliveries have slowed recently, there has been over 400,000 square eet o new s ace deliveredsince the beginning o 2010. Des ite the newly delivered s ace entering the market, overall vacanchas recently dro ed rom a high o 18.9% in Q2 2010 to its current rate o 15.7% ointing towa

ositive absor tion trend moving orward. sking rental rates have remained relatively stable over thast year with multistory buildings currently ranging rom a roximately $20 er square oot

service or lass B building to a high o $31.00 er square oot ull service or lass buildiingle story o ce or ex buildings with o ce uses are ranging rom $11.00 to $15.00 er square oo

on a net basis.


500

450

400

350

300

350

200

150

100

50

02006 2007 2008 2009 2010 Q2 2011

upd TNet bsor tion

M k T Nd TO

Q1 2011 Q2 2011

v N Y

N T O pT ON

ON T u T ON

NT L T

20.0%19.0%

18.0%

17.0%

16.0%

15.0%

14.0%

13.0%

12.0%

11.0%

10.0%2006 2007 2008 2009 2010 Q22011

vacancy ate


12/18

h :



T L +1 443 297 9016F X +1 443 543 0191

www.colliers.com/mar etname


upd T New ly, bsor tion an vacancy ates

L T v TY

p Op TY dd LL / uY L p F

Dorsey oad ( ro erties) p / ite ealty , , ,

parkway Drive outh Liberty pro erty rust/ parkway Drive LL , , ,

upd T New ly, bsor tion an vacancy ates

L G T L GN NG

p Op TY dd T N NT L F

National Business parkway pp I ,

Dorsey oad I ducational ervices ,

$26.50

$26.30

$26.10

$25.90

$25.70$25.50

$25.30

$25.10

$24.90

$24.70

$24.50

Q3 2010 Q4 2010 Q1 2011 Q2 2011

M lti- tory s ing ental ates

$25.00

$20.00

$15.00

$10.00

$5.00

$ 0.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

ingle- tory s ing ental ates










13/18

22.0%

20.0%

18.0%

16.0%

14.0%

12.0%2006 2007 2008 2009 2010 Q2 2011

Vaca cy Ra e

& downtown | BALtIMoRE REGIon

.c llier .c m/bal im re

Downtown Mid-Year Market ReportMARkEt oVERVIEw

he Baltimore ity ofce submarket comprises the traditional entral Business District ( BD) as wellas the adjacent areas o arbor ast & ells oint, anton, tadium/West, and outh Baltimore. With

this expanded downtown are approximately 14,800,000 square eet o lass ofce space in 61buildings. he itys traditional BD is bordered by aratoga treet on the north, oward treet on thewest, onway on the south, and resident on the east. With the growth o development south, westand east o Baltimores Inner arbor and BD, both new and adaptive reuse ofce projects have addedover 4,500,000 to the 10,200,000 in the entral Business District.

Vacancy in the market increased dramatically in step with the economic downturn beginning in 2008,with vacancy rates soaring into the 20%-25% range or the rst time since the dotcom bubble bursto the early 2000s. ecently, this negative surge has stabilized, with vacancy rates remaining in thelow 20s.

hough no new product o any signi cance has been delivered within the last 12 months, the latesdeliveries o note include the 278,000 square oot hames treet Whar project in the 2nd quarter o2010 and the 590,000 square oot Legg Mason ower at 100 International Drive in Q3 2009. While thedowntown market rates and concessions remain avorable or tenants, landlords have reached a

threshold as to the a orementioned. In other words, rental rates have likely reached their low, ree renthas been maximized, and tenant improvement monies are not owing any reer. In act, or exampowners with cash or with access to cash may be opting out o providing tenant Improvement dollarsdue to the low rental rates. ealizing that they may never make their money back, they may opt to leavetheir money on the sidelines and o er ree rent to compensate or any necessary improvements.

ositive net absorption has been de minimus in 2010 and 2011, however this can be consideredtrending in a positive direction as 2009 absorption was in excess o negative 100,000 square eet.

sking rental rates have remained stable over the past year and range rom the high teens to low $20sper square oot or lower end lass and higher end lass B buildings. Mid-range and top tier las

product have asking rates rom $23.00 to $31 per square oot. ll asking rates are on a ull servicbasis, de ned as inclusive o all base year operating expenses and real property taxes.


700

600

500

400

300

200

100

0

-100

-200

-3002006 2007 2008 2009 2010 Q2 2011

updAtEne Ab r i

MARkEt IndI AtoRs

Q1 2011 Q2 2011

VA An Y

nEt ABsoRptIon

onstRu tIon

REntAL RAtE


14/18

REsEAR hER:



tEL +1 443 297 9016FAX +1 443 543 0191

.c llier .c m/mar e ame


updAtE ne s ly, Ab r i a Vaca cy Ra e

sALEs A tIVItY

pRopERtY AddREss sELLER/BuYER sALE pRI E sF

leet treet leet t Inc/ leet t LL , , ,

ast ayette treet he ampshire ompanies/Mayor & ity ouncil o Baltimore , , ,

West ratt treet West ratt artnership LL / un Li e , , ,

updAtE ne s ly, Ab r i a Vaca cy Ra e

LARGEst LEAsE sIGnInGs

pRopERtY AddREss tEnAnt LAss sF

Light treet Miles & tockbridge ,

ast ratt treet N ,

North harles treet mmon, eisler & achs rchitects ,

outh alvert treet Northwest Mutual ,

$24.50

$24.30

$24.10

$23.90$23.70

$23.50

$23.30

$23.10

$22.90

$22.70

$22.50

Q3 2010 Q4 2010 Q1 2011 Q2 2011

A i g Re al Ra e 512 ofces in61 countries on6 continentsUnited tates: 125


sia aci c: 214M : 117




his document/email has been prepared by olliers International or advertising and general in ormation only. olliers International makes no guarantees,representations or warranties o any kind, expressed or implied, regarding the in ormation including, but not limited to, warranties o content, accuracy as to theaccuracy o the in ormation. his publication is the copyrighted property o olliers International and/or its licensor(s). 2011. ll rights reserved.



15/18

& ha f d unty | BaLtIM E EGI n

www.colliers.com/b l imore

Harford County Market Report

Ma kEt vE vIE

he arford ounty submarket is located approximately 25 miles northeast of Baltimore ity and ide ned by the I- 5 and oute 1 orridors. he area includes the local markets of Bel ir, berdeenand avre de Grace and is where the growing berdeen roving Ground is located. Major drivers ofo ce space in the Baltimore ounty North submarket other than the berdeen roving Groundinclude government contractors, health care providers and a variety of manufacturing companies.

he expectation of an additional 8,000 jobs as a result of the Base ealignment and losure processhas recently given a signi cant boost to this submarket, which consists of 125 properties and over3,500,000 square feet of space.

Vacancy in the arford ounty submarket has risen substantially in 2011 as a large amount of newspace has entered the market. s a result of the in ux of new jobs coming to the market, over700,000 square feet of new o ce space has been delivered since Q3 2010. his new spacerepresents a very large portion of the submarkets total square footage, which has led to a jump in

vacancy from just 7.5% in Q3 2010 to the current rate of 20.0%. Despite the high vacancy rate andthe expectation of more deliveries in the market, absorption is expected to remain strong andconsistent over the next few years and vacancy should slowly decline. sking rental rates formultistory buildings have risen over the past year while single story buildings have remained stable

urrently, multistory buildings are ranging from $18 per square foot full service for lass B buildingto a high of $30.00 per square foot full service for lass buildings. ingle story o ce or exbuildings with o ce uses are ranging anywhere from $10.00 per square foot on a net basis to $23.00per square foot full service depending on the quality and location of the building.


300

250

200

150

100

50

02006 2007 2008 2009 2010 Q2 2011

updatEne absor io

Ma kEt IndI at

Q1 2011 Q2 2011

va an y

nEt aB ptI n

n t u tI n

EntaL atE

25.0%

23.0%

21.0%

19.0%

17.0%

15.0%

13.0%

11.0%

9.0%

7.0%

5.0%2006 2007 2008 2009 2010 Q2 2011

v c c e


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E Ea hE :



tEL +1 443 2 7 016faX +1 443 543 01 1

www.colliers.com/m r e me


updatE new l , absor io v c c es

aLE a tIvIty

p pE ty add E ELLE /BuyE aLE p I E f

ulaski ighway ontemporary utomotive/ MacMurphy LL , ,

updatE new l , absor io v c c es

La GE t LEa E IGnInG

p pE ty add E tEnant La f

Guardian Gateway I ,

Guardian Gateway Q D ystems B 9,

$23.50

$23.00

$22.50

$22.00

$21.50

$21.00

$20.50

Q3 2010 Q4 2010 Q1 2011 Q2 2011

M l i- or as i g e l es

$25.00

$20.00

$15.00

$10.00

$5.00

$ 0.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

i gle- or as i g e l es



sia aci c: 214M : 117




his document/email has been prepared by olliers International for advertising and general information only. olliers 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 theaccuracy of the information. his publication is the copyrighted property of olliers International and/or its licensor(s). 2011. ll rights reserved.



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16.0%

15.0%

14.0%

13.0%

12.0%

11.0%

10.0%2006 2007 2008 2009 2010 Q2 2011

Vacancy Rate

& f pHOWARD COUNTY | BALTIMORE REGION


Howard County Market Report

MARkET OVERVIEW

he oward ounty submarket is located between Baltimore and Washington D and includes thelocal o ce markets o olumbia, llicott ity and Ma le Lawn. he submarket encom asses buildings with rimarily o ce uses in oward ounty with the exce tion o a small area that runalong the southeast ortion o the ounty near Baltimore-Washington International ir ort. owar

ounty is requently cited on a national level or its high quality o li e, a uence, and exceschools. In 2010 Money Magazine ranked the olumbia/ llicott ity area 2nd in its mericas Beplaces to Live survey, and oward ounty schools are o ten ranked 1st in the tate o Maryland ameasured by standardized test scores and graduation rates. ccess to one o the most highlyeducated and a uent labor ools in the country su orts the ountys healthy o ce use market o377 buildings and almost 18,000,000 square eet.

Vacancy in the oward ounty market has increased going back to 2007, but is starting to show signso a steady decline. Much o the additional vacant s ace in recent years has been due to th

antici ation o increased demand in the uture as a result o the Base ealignment and losuprogram e ects around fort Meade. ver the ast 3 years over 1 million square eet o o ce s acehas been delivered with almost 350,000 coming in the last year. While vacant s ace in the markerose rom 12.5% in Q1 2008 to 15% in Q1 2011, total available s ace in the market has dro ed 20% in Q2 2010 to 17.5% in Q2 2011. Vacancy in the market currently sits at 14.5%. sking rentrates have remained stable over the ast year, and multistory buildings currently range roma roximately $20 er square oot ull service or lass B building to a high o $31.75 er square

ull service or lass buildings. ingle story o ce or ex buildings with o ce uses are ranging ro$12.00 to $14.00 er square oot on a net basis.


1,000

800

600

400

200

0

-2002006 2007 2008 2009 2010 Q1 2011

UpDATENet Absor tion

MARkET INDICATOR

Q1 2011 Q2 2011

VACANCY

NET AB ORpTION

CON TRUCTION

RENTAL RATE


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RE EARCHER:



TEL +1 443 297 9016FAX +1 443 543 0191








UpDATE New u ly, Absor tion and Vacancy Rates

ALE ACTIVITY

pROpERTY ADDRE ELLER/BUYER ALE pRICE F

Ma le Lawn Boulevard ( ro erties) t. John/Greenebaum & ose , , ,

tan ord Boulevard oward ounty/W.p. arey , , ,

tevens forest oad LN / ore plus , , ,

Little patuxent parkway first potomac/ fL- I Investment rust , , ,

UpDATE New u ly, Absor tion and Vacancy Rates

LARGE T LEA E IGNING

pROpERTY ADDRE TENANT CLA F

ermann Drive J& B ,

olumbia Gateway Drive ockwell ollins B ,

lexander Bell Drive arris or oratioon B ,

olumbia Gateway Drive p ealthcare ,

$25.00

$24.80

$24.60

$24.40

$24.20$24.00

$23.80

$23.60

$23.40

$23.20

$23.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

Multi- tory As ing Rental Rates

$25.00

$20.00

$15.00

$10.00

$5.00

$0.00

Q3 2010 Q4 2010 Q1 2011 Q2 2011

ingle- tory As ing Rental Rates



colliers intl. office reports july 2011

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