office market maintains.pdf
TRANSCRIPT
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 17
Office Market MaintainsStability Through 2015
Research ampForecast Report
BALTIMORE REGIONQ2 2015 | Office
Nadia Kahler Research Director | Baltimore
Regional OverviewThe Baltimore Regional office market consists of Baltimore City and the surrounding counties of Anne Arundel Howard Baltimore
and Harford The Colliers defined submarkets of Annapolis BWI Area Howard County Baltimore County West Baltimore County
North Baltimore County East and Harford County are all located within this Region According to Costar there are currently 377
existing Class A buildings within the Baltimore Metro area with more than 45750000 square feet of space In the 2nd quarter of 2015
approximately 5250000 square feet of that space was vacant The overall regional vacancy rate ended at 116 about the same as
the national vacancy rate of 113
Nationally the economy continues to strengthen as hourly wages
grow unemployment rates drop and lower oil prices spur growth
The national office market rebounded in the 2nd quarter after a
disappointing 1st quarter plagued by bad weather According toCostar the premium for new office space has nearly doubled in the
past 10 years and although vacancy rates will continue to fall they
will likely bottom out in 2016 Rent growth among office properties
gained momentum up nearly 38 year over year which has
garnered the attention of investors Office building sales have risen
37 so far in 2015 on the national level
In Maryland the 2nd quarter was a challenging one particularly in
Baltimore City where historic social unrest protests and rioting
continue to dominate the local and national media That rioting
affected not only businesses within Baltimore who suffered lossesfrom looting but also companies who were considering opening
facilities in Baltimore Prospective tenants and buyers cancelled
tours and closings immediately following the riots an unfortunate
result after years of success in rebuilding Baltimorersquos reputation
regionally Moodyrsquos reports that Baltimore could suffer long term
effects as a result of decreased tourism lower home values and
the potential of out-migration further lowering the cityrsquos tax base
and overall revenues
Despite the social unrest that plagued much of the spring
commercial real estate deals in the city and surrounding counties
were completed with vacancy rates dropping to the lowest they
have been in recent history Investors are still very interested in
the Baltimore office market as evidenced by the purchase of 250W Pratt Street by COPT for $635 million In addition COPT has
also recently announced their intention to purchase 100 Light
Street Merritt Properties has plans to build a 12 story spec office
building in Canton further expanding their investment presence
in Baltimore City Additionally Under Armour CEO Kevin Plank
continues to announce plans for the massive Port Covington
portfolio that his company now controls Plans include Under
Armourrsquos new corporate headquarters a whiskey distillery retail
shops and perhaps even a horse track
Technology and cybersecurity remains a driving force behindMarylandrsquos economy With new legislation ending the NSArsquos bulk
data collection the tech community hopes to regain the publicrsquos
trust particularly in the Baltimore metro which is heavily saturated
by tech and cybersecurity contractors Organizations such as
TEDCO are working to fund tech startups while lawmakers are
proposing tax credits aimed for tech incubators in the State
Maryland hopes these incentives will attract companies from out of
state such as Bricata which announced they would relocate to the
bwtechUMBC from Northern Virginia
Market IndicatorsRelative to prior period Q983091 983090983088983089983092 Q983092 983090983088983089983092 Q983089 983090983088983089983093 Q983090 983090983088983089983093
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
8202019 Office Market Maintainspdf
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DEFINITIONS
Absorption (Net) The difference in physically occupied
space within a given time period calculated by summin
all the positive changes in occupancy and subtracting a
the negative changes in occupancy
Vacancy Rate Total vacant space divided by the total
inventory
Vacant Space Space that is not currently occupied by a
tenant regardless of any lease obligation on the space
Sublease Space Space that has been leased by a tenan
and is being offered for lease back to the market by the
tenant with the lease obligation
Deliveries Buildings that complete construction durin
a specific period of time A certificate of occupancy
must have been issued for the property to be
considered delivered
Leasing Activity The volume of square footage that is
committed to and signed for under a lease obligation fo
a specific building or market in a given period of time I
includes direct leases subleases and renewals of existin
leases It also includes any pre-leasing activity for
buildings under construction or planned
Average Asking Rent Weighted average rent per squar
foot triple net
Despite a rocky start to the year with regards to weather and social
discord several significant development projects were announced this
quarter McCormick Spice put rumors to rest of leaving the state by
announcing they would build a new 320000 sf headquarters at 99
Shawan Road in Hunt Valley Also in Hunt Valley JMT will move into
a brand new 130000 sf building at 40 Wight Avenue Both projects
are being developed by Greenfield Partners St John Properties
announced they would start work on 3 speculative office buildings
at Baltimore Crossroads in White Marsh after leasing more than
100000 sf of space at Crossroads last year Lifebridge Health became
the first office tenant to sign at lease at the to-be-built Foundry Row
development in Owings Mills taking 75 of the available Class A office
space being marketed Finally in Howard County Howard Hughes
Company announced that they would build a 300000 sf speculative
Class A building in the Crescent area in downtown Columbia
Unemployment rates dropped to 54 earlier this spring as Maryland
appears to have gained 16400 jobs in the month of April according
to the US Department of Labor The Fed is not expected to raiserates until the fall at the earliest thus continuing to cushion the local
and national economy The area needs to strengthen the middle-
income population base to further assist in retail demand as well as
be cautious of changes in government spending that would directly
impact employment rates in the Baltimore Metro All things considered
however the Baltimore Regionsrsquo economy will likely continue to
strengthen throughout the balance of 2015
Net AbsorptionNet absorption in the Class A Baltimore Region office market
rebounded in the first half of the year after going negative for the firsttime in 12 months at the end of 2014 Class B amp C space on the other
hand suffered negative absorption after enjoying increased leasing
during the 3rd and 4th quarters of 2014 In the past negative absorption
was attributed to the 750000 -1 million SF of Class B product is
subject to adaptive re-use conversions
VacancyOverall vacancy rates in the Baltimore Regionrsquos office market were
relatively unchanged at 118 Class A office vacancy dropped to the
lowest they have been in recent history to 116 while Class BampC
space increased to 12 With several new development projectsscheduled to break ground later this year vacancy is expected to rise
slightly but then quickly absorbed
Rental RatesAverage full service rental rates hovered around $2125 psf as it has
for the past 3 years Class A office full service rental rates were also
stagnant at $2350 psf as were Class B amp C office rental rates holding
around $1975 psf
Net Absorption
Vacancy Rate
0
200
400
600
800
1000
1200
1400
1600
2012 2013 2014 2015
T h o u s a n d s
90
100
110
120
130
140
150
Q2 2012 Q2 2013 Q2 2014 Q2 201
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 37
Single Story Asking Rental Rates
Multistory Asking Rental Rates
3 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
$1900
$1950
$2000
$2050
$2100
$2150
$2200
$2250
$2300
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
$1700
$1750
$1800
$1850
$1900
$1950
$2000
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
Market Area
Annapolis
The Annapolis submarket is located approximately 25 miles
south of Baltimore City and 30 miles east of Washington DC The
local Class A amp B office market consists of 162 properties and
approximately 5700000 square feet of space In the 2nd quarter of
2015 approximately 980000 square feet of this space was vacantor a 172 vacancy rate Capital Bank signed a 6890 sf lease as
the first tenant at Annapolis Corporate Park at 185 Harry S Truman
Parkway KURE Pain Management renewed their lease at 116
Defense Highway for 4737 sf Additionally the Department of Natural
Resources renewed their 5624 sf lease at 1804 West Street As for
sales transactions Greenfield sold 180 amp 190 Admiral Cochrane for a
reported $361 million to Goldman Sachs
Baltimore County East
The Baltimore County East submarket includes Baltimore County
suburban areas located east of Baltimore City defined by the I-95
Corridor as well as I-695 and includes the local markets of White
Marsh Perry Hall Dundalk and Essex In the 2nd quarter of 2015
the submarket included 110 Class A amp B buildings and more than
3600000 sf of space with approximately 380000 square feet of that
space vacant or a 104 vacancy rate Though typically not known
as an office market proximity to major highways and high density
population makes this submarket attractive for retail and industrial
flex users Leading By Example LLC signed a 6693 sf lease at 5026
Campbell Boulevard while BeFit Personal Trainers signed a 2000 sf
lease at 5022 Campbell Boulevard St John Property announced they
would break ground on 3 speculative office buildings and Baltimore
Crossroads building a year of successful leasing of the existing office
buildings during 2014
Baltimore County West
The Baltimore County West submarket is located in the suburban areas
of Baltimore County bordering the western and northwestern portions
of Baltimore City The submarket is defined by I-695 and Reisterstown
Road corridors and includes the local markets of Owings Mills
Pikesville Woodlawn Catonsville and Arbutus This submarket consists
of 296 Class A amp B buildings having approximately 13000000 squarefeet In the 2nd quarter of 2015 nearly 2100000 square feet of that
space was vacant representing a 16 vacancy rate BECO Towers
saw increased activity this quarter with EMG signing a 16000 sf
lease and Insurance Inc signing an 11000 sf lease there Lifebridge
Health became the first office tenant to sign a lease at Foundry Row
taking approximately 75 of the available office space Tourgee and
Associates Inc signed a 22580 sf lease at 600 Red Brook Boulevard
as well
50
95
495
295
395
97
695
695
50
83
1
40
ANNEARUNDEL
BALTIMORECOUNTY
OLL
HARFO
HOWARD
RY
PRINCEGEORGErsquoS
BALTIMORE CITY
ND
Columbia
Annapolis
Baltimore
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
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Baltimore County North
The Baltimore County North submarket incorporates major
thoroughfares including the I-83 corridor as well as I-695 In
addition to the traditional submarkets of Towson and Timonium
the area also includes Hunt Valley Cockeysville and Sparks
The overall Baltimore County North Class A amp B office market
contains 276 properties and approximately 15200000 square
feet of space In the 2nd quarter of 2015 approximately 1900000
square feet of that space was vacant representing a 126
vacancy rate Of the Class A buildings in the Hunt ValleySparks
submarket however that vacancy rate is much lower standing
at just 62 As for lease activity Stegman amp Company signed
a 10319 sf lease at 809 Gleneagles Court and Progressive
Insurance signed a 15000 sf lease at 11350 McCormick Road
Two major development projects were announced this quarter
the first being McCormick Spice Companies decision to stay in
Hunt Valley and build a 320000 sf headquarters at 99 Shawan
Road The second JMT announced they would build a 130000
sf headquarters at 40 Wight Avenue Both projects are being
developed by Greenfield Partners
BWI
The BWI Area submarket is located around the Baltimore
Washington Thurgood Marshall International Airport and includes
Fort George Meade NSA headquarters Linthicum Hanover
Glen Burnie Elkridge and small portions of Howard County
bordering BWI Airport to the west This market consists of 199
properties and more than 13000000 square feet of space In
the 2nd quarter of 2015 approximately 1500000 square feet of
this space was vacant or 116 Although leasing activity was
relatively slow this quarter Oracle renewed Microsrsquo lease at 1025
Airport 100 Way for 87600 sf As for sales activity 200 Hospital
Drive sold for $1865 million dollars to California based American
Healthcare Investors
Downtown Baltimore
The Baltimore City office submarket comprises the traditional
Central Business District (CBD) as well as the adjacent areas
of Harbor East amp Fells Point Canton StadiumWest and SouthBaltimore Within this expanded downtown area there is more
than 13100000 sf of Class A office space In the 2nd quarter of
2015 more than 2050000 square feet of that space was vacant
for lease or sublease or a 1566 vacancy rate As has been the
case in the past office buildings on the Pratt Street corridor fare
better the average ending the year at 921 vacant However
the same cannot be said for properties North of Lombard
Street which currently hold a 2910 vacancy rate Despite an
unsettling quarter with regards to politics within the city office
activity moved forward steadily COPT bought 250 W Pratt for
$635 million while also announcing their intention to buy 100
Light Street As for leasing activity Parson Brinkerhoff signed a
23000 sf lease at 1 E Pratt Street 1215 Fort Avenue had two
tenants sign this quarter Gilbane Building Companies for 12000
sf lease and Kimly Horn for 3400 sf
Harford County
The Harford County submarket is defined by the I-95 and Route
1 Corridors The area includes the local markets of Bel Air
Aberdeen (including Aberdeen Proving Grounds) and Havre
de Grace This market consists of 130 Class A amp B properties
and just under 4100000 square feet of existing space In the
2nd quarter of 2015 about 885000 square feet of that space
was vacant or 217 This market which has been plagued by
oversupply and vacancy saw a slight uptick in activity during
the first half 2015 particularly in Bel Air 4694 Millennium Drivesigned two new tenants Lifoam Industries for 2556 sf and
Systems Technologies for 2544 sf
Howard County
The Howard County submarket is located between Baltimore
MD and Washington DC along the I-95 corridor comprised of
387 Class A amp B buildings and about 18480000 square feet of
space In the 2nd quarter of 2015 approximately 1850000 square
feet of that space was vacant or 10 Several large transactions
occurred in this submarket in the past few months includingFEI signing a 48832 sf lease at 9755 Patuxent Woods Drive
Other significant transactions included Astrum Solar relocating
to 42852 sf at 7101 Riverwood and Zust Bahmeier signing a
99508 sf lease at 1349 Charwood Road Howard County Board
of Education renewed their 8188 sf lease at 9770 Patuxent
Woods Road for 10 years while the Columbia Association signed
a 32850 sf lease for 13 years at 6310 Hillside Court As for
sales transactions Rivers Technology Park sold for $815 million
to Ruppert Properties and 10200 Old Columbia Road sold for
$319 million
8202019 Office Market Maintainspdf
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Baltimore Office Market Update
Market Comparisons
SUBMARKETCOUNTY TOTAL SF AVERAGE ASKINGRATES
VACANT SF VACANCY CURRENTQUARTER
YTD CURRENT COMPLETED
REGION NAME Net Absorption New Construction
Annapolis 983093983095983091983093983094983091983088 sf 983076983090983093983092983093 983097983095983095983092983095983091 sf 983089983095 983089983093983093983092983093 sf -983090983090983091983089983094 983088 983088
Baltimore County East 983091983094983092983090983091983091983094 sf 983076983090983088983088983088 983091983095983095983090983097983093 sf 983089983088983092 983089983088983096983095983096983096 sf 983089983089983089983091983091983092 sf 983092983096983095983097983088 sf 983088
Baltimore County West 983089983091983088983096983090983092983097983093 sf 983076983090983088983088983088 983090983088983096983089983094983094983096 sf 983089983093983097 -983091983094983094983088983089 sf 983091983097983092983088983093 sf 983089983097983090983088983088983088 sf 983088
Baltimore County North 983089983093983090983092983088983089983090983089 sf 983076983090983088983089983093 983089983096983096983097983088983090983091 sf 983089983090983092 983097983089983088983088983097 sf -983094983094983096983097 sf 983088 983092983090983095983088983092 sf
BWI 983089983091983088983095983093983096983096983091 sf 983076983090983092983090983093 983089983093983091983091983093983090983089 sf 983089983089983095 -983094983090983093983094983088 sf -983092983091983090983096983096 sf 983088 983088
Downtown Baltimore 983089983091983089983088983094983089983089983097 sf 983076983090983090983088983088 983090983088983093983090983095983094983093 sf 983089983093983094 983094983088983092983089983096 sf 983089983096983094983094983094983094 sf 983094983093983089983092983093983094 sf 983088
Harford County 983092983088983097983088983094983093983097 sf 983076983090983091983089983093 983096983096983094983092983090983093 sf 983090983089983095 983089983089983092983097983094 sf 983097983092983094983090 sf 983088 983088
Howard County 983089983096983092983096983091983095983090983097 sf 983076983090983092983088983093 983089983095983097983097983091983092983095 sf 983097983095 983089983089983088983092983090983090 sf 983089983094983092983096983090983089 sf 983089983090983094983088983088 sf 983088
Quarterly Comparisons and Totals - Baltimore Metro Class A
QUARTER TOTAL RBA VACANT SF VACANCY CURRENT Q
ABSORPTIONYTD ABSORPTION
CURRENTCONSTRUCTION
COMPLETEDDELIVERIES
AVERAGE RENTALRATES
Q983090 983090983088983089983093 983092983093983096983097983089983096983089983093 sf 983093983090983092983089983092983097983089 sf 983089983089983092 983091983092983090983091983096983094 sf 983095983094983088983090983091983096 sf 983089983088983093983096983090983089983094 sf 983092983090983095983088983092 sf 983076983090983092983089983094
Q983089 983090983088983089983093 983092983093983096983092983097983089983089983089 sf 983093983093983092983089983089983095983091 sf 983089983090983089 983092983089983095983096983093983090 sf 983092983089983095983096983093983090 sf 983097983093983089983096983088983088 sf 983088 983076983090983092983088983094
Q983092 983090983088983089983092 983092983093983096983092983097983089983089983089 sf 983093983097983093983097983088983090983093 sf 983089983091983088 -983090983088983092983092983095983089 sf 983089983090983096983094983094983090983095 sf 983097983093983089983096983088983088 sf 983088 983076983090983091983092983097
Q983091 983090983088983089983092 983092983093983096983092983097983089983089983089 983093983095983093983092983093983093983092 sf 983089983090983094 983089983090983091983090983090983092 sf 983089983092983097983089983088983097983096 sf 983097983093983089983096983088983088 sf 983090983095983090983088983088983088 sf 983076983090983091983096983090
Q983090 983090983088983089983092 983092983093983093983095983095983089983089983089 sf 983093983094983088983093983095983095983096 sf 983089983090983091 983090983095983095983094983091983089 sf 983089983091983094983095983096983095983092 sf 983093983088983094983095983088983092 sf 983088 983076983090983091983091983094
Update - Recent Transactions in the Market
Select Sales Activity
PROPERTY ADDRESS BUYER SALE PRICE SF PRICESF
983090983093983088 W Pratt Street COPT 983076983094983091983093983088983088983088983088983088 983091983094983096983089983097983092 sf 983076983089983095983090983092983094
983090983088983088 Hospital Drive American Healthcare REIT 983076983089983096983094983093983088983088983088983088 983095983093983095983089983096 sf 983076983090983092983094983091983089
983089983096983088 Admiral Cochrane Drive Goldman Sachs 983076983091983094983089983088983088983088983088983088 983089983090983096983095983088983091 sf 983076983089983096983090983096983091
983097983093983092 Ridgebrook Road Sparks Capital Group 983076983089983091983093983088983088983088983088 983094983089983095983088983095 sf 983076983089983093983093983088983096
983094983096983089983094 Deerpath Rod RAO Manufacturing Company Holdings LLC 983076983090983093983088983088983088983088983088 983089983095983088983091983090 sf 983076983089983092983094983095983096
Select Lease Signings
TENANT LEASED SF ADDRESS CITY
FEI Systems 983092983096983096983091983090 sf 983097983095983093983093 Patuxent Woods Drive Columbia
Wolters Kluwer 983091983093983089983088983088 sf 983091983090983091-983091983093983089 W Camden Street Baltimore
Niles Barton amp Wilmer LLP 983090983089983096983091983093 sf 983089983089983089 S Calvert Street Baltimore
Parson Brinckerhoff Inc 983090983089983089983096983090 sf 983089 E Pratt Street Baltimore
Lifebridge Health 983090983096983097983091983095 sf 983089983088983089983088983088 Reisterstown Road Owings Mills
Tourgee and Associates 983090983090983093983096983088 sf 983094983088983088 Red Brook Boulevard Owings Mills
Gantech Federal 983089983096983090983095983096 sf 983097983089983095983093 Guilford Road Columbia
EMG 983089983094983089983091983094 sf 983089983088983092983094983089 Mill Run Circle Owings Mills
University of Maryland Medical Center 983090983094983088983088983088 sf 983093983097983088983088 Waterloo Road Ellicott City
Gilbane Building Company 983089983090983088983088983088 sf 983089983090983089983093 Fort Avenue Baltimore
Columbia Association 983091983090983096983093983091 sf 983094983091983089983088 Hillside Court Columbia
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 676 North American Research amp Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright copy 2015 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable Whileevery reasonable effort has been made to ensure its accuracy we cannot guarantee it Noresponsibility is assumed for any inaccuracies Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore Maryland 21201+1 443 297 9000collierscomgreaterbaltimore
FOR MORE INFORMATION
Nadia Kahler
Vice President | Baltimore+1 443 543 1222NadiaKahlercollierscom
The Baltimore Regional office market consists of Baltimore City and the surrounding counties of Anne Arundel Howard Baltimoreand Harford The Colliers defined submarkets of Annapolis BWI Area Howard County Baltimore County West Baltimore CountyNorth Baltimore County East and Harford County are all located within this Region
50
95
95
495
70
295
395
97
695
695
301
50
83
95
1
40
301
40
1
ANNEARUNDEL
BALTIMORECOUNTY
CARO
CARROLL
CECIL
HARFORD
HOWARDKENT
MONTGOMERY
PRINCEGEORGErsquoS
QUEEANNE
BALTIMORE CITY
ARLINGTON
DISTRICTOF COLUMBIA
PENNSYLVANIA
MARYLAND
Columbia
Annapolis
Baltimore
Washington
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 77
Copyright copy 2015 Colliers International
The information contained herein has been obtained from sources deemed reliable While every reasonable effort has been made to
ensure its accuracy we cannot guarantee it No responsibility is assumed for any inaccuracies Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report
About Colliers International
Colliers International is a global leader in commercial real estate services with more than 16300 professionals operating out of 502 offices in 67 countries Colliers International delivers a full range ofservices to real estate occupiers owners and investors worldwide including global corporate solutionsbrokerage property and asset management hotel investment sales and consulting valuation consulting andappraisal services mortgage banking and insightful research Colliers International has been recognizedand ranked by the International Association of Outsourcing Professionalsrsquo Global Outsourcing 100 for 10consecutive years more than any other real estate services firm
collierscom
502 offices in
67 countries on
6 continentsUnited States 140
Canada 31
Latin America 24
Asia Pacific 199
EMEA 108
$23billion inannual revenue
17billion square feetunder management
16300professionalsand staff
MARKET CONTACT
Nadia KahlerVice President | Baltimore+1 443 543 1222nadiakahlercollierscom
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore MD 21201 | USA
+1 443 297 9000
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 272 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
DEFINITIONS
Absorption (Net) The difference in physically occupied
space within a given time period calculated by summin
all the positive changes in occupancy and subtracting a
the negative changes in occupancy
Vacancy Rate Total vacant space divided by the total
inventory
Vacant Space Space that is not currently occupied by a
tenant regardless of any lease obligation on the space
Sublease Space Space that has been leased by a tenan
and is being offered for lease back to the market by the
tenant with the lease obligation
Deliveries Buildings that complete construction durin
a specific period of time A certificate of occupancy
must have been issued for the property to be
considered delivered
Leasing Activity The volume of square footage that is
committed to and signed for under a lease obligation fo
a specific building or market in a given period of time I
includes direct leases subleases and renewals of existin
leases It also includes any pre-leasing activity for
buildings under construction or planned
Average Asking Rent Weighted average rent per squar
foot triple net
Despite a rocky start to the year with regards to weather and social
discord several significant development projects were announced this
quarter McCormick Spice put rumors to rest of leaving the state by
announcing they would build a new 320000 sf headquarters at 99
Shawan Road in Hunt Valley Also in Hunt Valley JMT will move into
a brand new 130000 sf building at 40 Wight Avenue Both projects
are being developed by Greenfield Partners St John Properties
announced they would start work on 3 speculative office buildings
at Baltimore Crossroads in White Marsh after leasing more than
100000 sf of space at Crossroads last year Lifebridge Health became
the first office tenant to sign at lease at the to-be-built Foundry Row
development in Owings Mills taking 75 of the available Class A office
space being marketed Finally in Howard County Howard Hughes
Company announced that they would build a 300000 sf speculative
Class A building in the Crescent area in downtown Columbia
Unemployment rates dropped to 54 earlier this spring as Maryland
appears to have gained 16400 jobs in the month of April according
to the US Department of Labor The Fed is not expected to raiserates until the fall at the earliest thus continuing to cushion the local
and national economy The area needs to strengthen the middle-
income population base to further assist in retail demand as well as
be cautious of changes in government spending that would directly
impact employment rates in the Baltimore Metro All things considered
however the Baltimore Regionsrsquo economy will likely continue to
strengthen throughout the balance of 2015
Net AbsorptionNet absorption in the Class A Baltimore Region office market
rebounded in the first half of the year after going negative for the firsttime in 12 months at the end of 2014 Class B amp C space on the other
hand suffered negative absorption after enjoying increased leasing
during the 3rd and 4th quarters of 2014 In the past negative absorption
was attributed to the 750000 -1 million SF of Class B product is
subject to adaptive re-use conversions
VacancyOverall vacancy rates in the Baltimore Regionrsquos office market were
relatively unchanged at 118 Class A office vacancy dropped to the
lowest they have been in recent history to 116 while Class BampC
space increased to 12 With several new development projectsscheduled to break ground later this year vacancy is expected to rise
slightly but then quickly absorbed
Rental RatesAverage full service rental rates hovered around $2125 psf as it has
for the past 3 years Class A office full service rental rates were also
stagnant at $2350 psf as were Class B amp C office rental rates holding
around $1975 psf
Net Absorption
Vacancy Rate
0
200
400
600
800
1000
1200
1400
1600
2012 2013 2014 2015
T h o u s a n d s
90
100
110
120
130
140
150
Q2 2012 Q2 2013 Q2 2014 Q2 201
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 37
Single Story Asking Rental Rates
Multistory Asking Rental Rates
3 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
$1900
$1950
$2000
$2050
$2100
$2150
$2200
$2250
$2300
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
$1700
$1750
$1800
$1850
$1900
$1950
$2000
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
Market Area
Annapolis
The Annapolis submarket is located approximately 25 miles
south of Baltimore City and 30 miles east of Washington DC The
local Class A amp B office market consists of 162 properties and
approximately 5700000 square feet of space In the 2nd quarter of
2015 approximately 980000 square feet of this space was vacantor a 172 vacancy rate Capital Bank signed a 6890 sf lease as
the first tenant at Annapolis Corporate Park at 185 Harry S Truman
Parkway KURE Pain Management renewed their lease at 116
Defense Highway for 4737 sf Additionally the Department of Natural
Resources renewed their 5624 sf lease at 1804 West Street As for
sales transactions Greenfield sold 180 amp 190 Admiral Cochrane for a
reported $361 million to Goldman Sachs
Baltimore County East
The Baltimore County East submarket includes Baltimore County
suburban areas located east of Baltimore City defined by the I-95
Corridor as well as I-695 and includes the local markets of White
Marsh Perry Hall Dundalk and Essex In the 2nd quarter of 2015
the submarket included 110 Class A amp B buildings and more than
3600000 sf of space with approximately 380000 square feet of that
space vacant or a 104 vacancy rate Though typically not known
as an office market proximity to major highways and high density
population makes this submarket attractive for retail and industrial
flex users Leading By Example LLC signed a 6693 sf lease at 5026
Campbell Boulevard while BeFit Personal Trainers signed a 2000 sf
lease at 5022 Campbell Boulevard St John Property announced they
would break ground on 3 speculative office buildings and Baltimore
Crossroads building a year of successful leasing of the existing office
buildings during 2014
Baltimore County West
The Baltimore County West submarket is located in the suburban areas
of Baltimore County bordering the western and northwestern portions
of Baltimore City The submarket is defined by I-695 and Reisterstown
Road corridors and includes the local markets of Owings Mills
Pikesville Woodlawn Catonsville and Arbutus This submarket consists
of 296 Class A amp B buildings having approximately 13000000 squarefeet In the 2nd quarter of 2015 nearly 2100000 square feet of that
space was vacant representing a 16 vacancy rate BECO Towers
saw increased activity this quarter with EMG signing a 16000 sf
lease and Insurance Inc signing an 11000 sf lease there Lifebridge
Health became the first office tenant to sign a lease at Foundry Row
taking approximately 75 of the available office space Tourgee and
Associates Inc signed a 22580 sf lease at 600 Red Brook Boulevard
as well
50
95
495
295
395
97
695
695
50
83
1
40
ANNEARUNDEL
BALTIMORECOUNTY
OLL
HARFO
HOWARD
RY
PRINCEGEORGErsquoS
BALTIMORE CITY
ND
Columbia
Annapolis
Baltimore
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 474 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
Baltimore County North
The Baltimore County North submarket incorporates major
thoroughfares including the I-83 corridor as well as I-695 In
addition to the traditional submarkets of Towson and Timonium
the area also includes Hunt Valley Cockeysville and Sparks
The overall Baltimore County North Class A amp B office market
contains 276 properties and approximately 15200000 square
feet of space In the 2nd quarter of 2015 approximately 1900000
square feet of that space was vacant representing a 126
vacancy rate Of the Class A buildings in the Hunt ValleySparks
submarket however that vacancy rate is much lower standing
at just 62 As for lease activity Stegman amp Company signed
a 10319 sf lease at 809 Gleneagles Court and Progressive
Insurance signed a 15000 sf lease at 11350 McCormick Road
Two major development projects were announced this quarter
the first being McCormick Spice Companies decision to stay in
Hunt Valley and build a 320000 sf headquarters at 99 Shawan
Road The second JMT announced they would build a 130000
sf headquarters at 40 Wight Avenue Both projects are being
developed by Greenfield Partners
BWI
The BWI Area submarket is located around the Baltimore
Washington Thurgood Marshall International Airport and includes
Fort George Meade NSA headquarters Linthicum Hanover
Glen Burnie Elkridge and small portions of Howard County
bordering BWI Airport to the west This market consists of 199
properties and more than 13000000 square feet of space In
the 2nd quarter of 2015 approximately 1500000 square feet of
this space was vacant or 116 Although leasing activity was
relatively slow this quarter Oracle renewed Microsrsquo lease at 1025
Airport 100 Way for 87600 sf As for sales activity 200 Hospital
Drive sold for $1865 million dollars to California based American
Healthcare Investors
Downtown Baltimore
The Baltimore City office submarket comprises the traditional
Central Business District (CBD) as well as the adjacent areas
of Harbor East amp Fells Point Canton StadiumWest and SouthBaltimore Within this expanded downtown area there is more
than 13100000 sf of Class A office space In the 2nd quarter of
2015 more than 2050000 square feet of that space was vacant
for lease or sublease or a 1566 vacancy rate As has been the
case in the past office buildings on the Pratt Street corridor fare
better the average ending the year at 921 vacant However
the same cannot be said for properties North of Lombard
Street which currently hold a 2910 vacancy rate Despite an
unsettling quarter with regards to politics within the city office
activity moved forward steadily COPT bought 250 W Pratt for
$635 million while also announcing their intention to buy 100
Light Street As for leasing activity Parson Brinkerhoff signed a
23000 sf lease at 1 E Pratt Street 1215 Fort Avenue had two
tenants sign this quarter Gilbane Building Companies for 12000
sf lease and Kimly Horn for 3400 sf
Harford County
The Harford County submarket is defined by the I-95 and Route
1 Corridors The area includes the local markets of Bel Air
Aberdeen (including Aberdeen Proving Grounds) and Havre
de Grace This market consists of 130 Class A amp B properties
and just under 4100000 square feet of existing space In the
2nd quarter of 2015 about 885000 square feet of that space
was vacant or 217 This market which has been plagued by
oversupply and vacancy saw a slight uptick in activity during
the first half 2015 particularly in Bel Air 4694 Millennium Drivesigned two new tenants Lifoam Industries for 2556 sf and
Systems Technologies for 2544 sf
Howard County
The Howard County submarket is located between Baltimore
MD and Washington DC along the I-95 corridor comprised of
387 Class A amp B buildings and about 18480000 square feet of
space In the 2nd quarter of 2015 approximately 1850000 square
feet of that space was vacant or 10 Several large transactions
occurred in this submarket in the past few months includingFEI signing a 48832 sf lease at 9755 Patuxent Woods Drive
Other significant transactions included Astrum Solar relocating
to 42852 sf at 7101 Riverwood and Zust Bahmeier signing a
99508 sf lease at 1349 Charwood Road Howard County Board
of Education renewed their 8188 sf lease at 9770 Patuxent
Woods Road for 10 years while the Columbia Association signed
a 32850 sf lease for 13 years at 6310 Hillside Court As for
sales transactions Rivers Technology Park sold for $815 million
to Ruppert Properties and 10200 Old Columbia Road sold for
$319 million
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 575 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
Baltimore Office Market Update
Market Comparisons
SUBMARKETCOUNTY TOTAL SF AVERAGE ASKINGRATES
VACANT SF VACANCY CURRENTQUARTER
YTD CURRENT COMPLETED
REGION NAME Net Absorption New Construction
Annapolis 983093983095983091983093983094983091983088 sf 983076983090983093983092983093 983097983095983095983092983095983091 sf 983089983095 983089983093983093983092983093 sf -983090983090983091983089983094 983088 983088
Baltimore County East 983091983094983092983090983091983091983094 sf 983076983090983088983088983088 983091983095983095983090983097983093 sf 983089983088983092 983089983088983096983095983096983096 sf 983089983089983089983091983091983092 sf 983092983096983095983097983088 sf 983088
Baltimore County West 983089983091983088983096983090983092983097983093 sf 983076983090983088983088983088 983090983088983096983089983094983094983096 sf 983089983093983097 -983091983094983094983088983089 sf 983091983097983092983088983093 sf 983089983097983090983088983088983088 sf 983088
Baltimore County North 983089983093983090983092983088983089983090983089 sf 983076983090983088983089983093 983089983096983096983097983088983090983091 sf 983089983090983092 983097983089983088983088983097 sf -983094983094983096983097 sf 983088 983092983090983095983088983092 sf
BWI 983089983091983088983095983093983096983096983091 sf 983076983090983092983090983093 983089983093983091983091983093983090983089 sf 983089983089983095 -983094983090983093983094983088 sf -983092983091983090983096983096 sf 983088 983088
Downtown Baltimore 983089983091983089983088983094983089983089983097 sf 983076983090983090983088983088 983090983088983093983090983095983094983093 sf 983089983093983094 983094983088983092983089983096 sf 983089983096983094983094983094983094 sf 983094983093983089983092983093983094 sf 983088
Harford County 983092983088983097983088983094983093983097 sf 983076983090983091983089983093 983096983096983094983092983090983093 sf 983090983089983095 983089983089983092983097983094 sf 983097983092983094983090 sf 983088 983088
Howard County 983089983096983092983096983091983095983090983097 sf 983076983090983092983088983093 983089983095983097983097983091983092983095 sf 983097983095 983089983089983088983092983090983090 sf 983089983094983092983096983090983089 sf 983089983090983094983088983088 sf 983088
Quarterly Comparisons and Totals - Baltimore Metro Class A
QUARTER TOTAL RBA VACANT SF VACANCY CURRENT Q
ABSORPTIONYTD ABSORPTION
CURRENTCONSTRUCTION
COMPLETEDDELIVERIES
AVERAGE RENTALRATES
Q983090 983090983088983089983093 983092983093983096983097983089983096983089983093 sf 983093983090983092983089983092983097983089 sf 983089983089983092 983091983092983090983091983096983094 sf 983095983094983088983090983091983096 sf 983089983088983093983096983090983089983094 sf 983092983090983095983088983092 sf 983076983090983092983089983094
Q983089 983090983088983089983093 983092983093983096983092983097983089983089983089 sf 983093983093983092983089983089983095983091 sf 983089983090983089 983092983089983095983096983093983090 sf 983092983089983095983096983093983090 sf 983097983093983089983096983088983088 sf 983088 983076983090983092983088983094
Q983092 983090983088983089983092 983092983093983096983092983097983089983089983089 sf 983093983097983093983097983088983090983093 sf 983089983091983088 -983090983088983092983092983095983089 sf 983089983090983096983094983094983090983095 sf 983097983093983089983096983088983088 sf 983088 983076983090983091983092983097
Q983091 983090983088983089983092 983092983093983096983092983097983089983089983089 983093983095983093983092983093983093983092 sf 983089983090983094 983089983090983091983090983090983092 sf 983089983092983097983089983088983097983096 sf 983097983093983089983096983088983088 sf 983090983095983090983088983088983088 sf 983076983090983091983096983090
Q983090 983090983088983089983092 983092983093983093983095983095983089983089983089 sf 983093983094983088983093983095983095983096 sf 983089983090983091 983090983095983095983094983091983089 sf 983089983091983094983095983096983095983092 sf 983093983088983094983095983088983092 sf 983088 983076983090983091983091983094
Update - Recent Transactions in the Market
Select Sales Activity
PROPERTY ADDRESS BUYER SALE PRICE SF PRICESF
983090983093983088 W Pratt Street COPT 983076983094983091983093983088983088983088983088983088 983091983094983096983089983097983092 sf 983076983089983095983090983092983094
983090983088983088 Hospital Drive American Healthcare REIT 983076983089983096983094983093983088983088983088983088 983095983093983095983089983096 sf 983076983090983092983094983091983089
983089983096983088 Admiral Cochrane Drive Goldman Sachs 983076983091983094983089983088983088983088983088983088 983089983090983096983095983088983091 sf 983076983089983096983090983096983091
983097983093983092 Ridgebrook Road Sparks Capital Group 983076983089983091983093983088983088983088983088 983094983089983095983088983095 sf 983076983089983093983093983088983096
983094983096983089983094 Deerpath Rod RAO Manufacturing Company Holdings LLC 983076983090983093983088983088983088983088983088 983089983095983088983091983090 sf 983076983089983092983094983095983096
Select Lease Signings
TENANT LEASED SF ADDRESS CITY
FEI Systems 983092983096983096983091983090 sf 983097983095983093983093 Patuxent Woods Drive Columbia
Wolters Kluwer 983091983093983089983088983088 sf 983091983090983091-983091983093983089 W Camden Street Baltimore
Niles Barton amp Wilmer LLP 983090983089983096983091983093 sf 983089983089983089 S Calvert Street Baltimore
Parson Brinckerhoff Inc 983090983089983089983096983090 sf 983089 E Pratt Street Baltimore
Lifebridge Health 983090983096983097983091983095 sf 983089983088983089983088983088 Reisterstown Road Owings Mills
Tourgee and Associates 983090983090983093983096983088 sf 983094983088983088 Red Brook Boulevard Owings Mills
Gantech Federal 983089983096983090983095983096 sf 983097983089983095983093 Guilford Road Columbia
EMG 983089983094983089983091983094 sf 983089983088983092983094983089 Mill Run Circle Owings Mills
University of Maryland Medical Center 983090983094983088983088983088 sf 983093983097983088983088 Waterloo Road Ellicott City
Gilbane Building Company 983089983090983088983088983088 sf 983089983090983089983093 Fort Avenue Baltimore
Columbia Association 983091983090983096983093983091 sf 983094983091983089983088 Hillside Court Columbia
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 676 North American Research amp Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright copy 2015 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable Whileevery reasonable effort has been made to ensure its accuracy we cannot guarantee it Noresponsibility is assumed for any inaccuracies Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore Maryland 21201+1 443 297 9000collierscomgreaterbaltimore
FOR MORE INFORMATION
Nadia Kahler
Vice President | Baltimore+1 443 543 1222NadiaKahlercollierscom
The Baltimore Regional office market consists of Baltimore City and the surrounding counties of Anne Arundel Howard Baltimoreand Harford The Colliers defined submarkets of Annapolis BWI Area Howard County Baltimore County West Baltimore CountyNorth Baltimore County East and Harford County are all located within this Region
50
95
95
495
70
295
395
97
695
695
301
50
83
95
1
40
301
40
1
ANNEARUNDEL
BALTIMORECOUNTY
CARO
CARROLL
CECIL
HARFORD
HOWARDKENT
MONTGOMERY
PRINCEGEORGErsquoS
QUEEANNE
BALTIMORE CITY
ARLINGTON
DISTRICTOF COLUMBIA
PENNSYLVANIA
MARYLAND
Columbia
Annapolis
Baltimore
Washington
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 77
Copyright copy 2015 Colliers International
The information contained herein has been obtained from sources deemed reliable While every reasonable effort has been made to
ensure its accuracy we cannot guarantee it No responsibility is assumed for any inaccuracies Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report
About Colliers International
Colliers International is a global leader in commercial real estate services with more than 16300 professionals operating out of 502 offices in 67 countries Colliers International delivers a full range ofservices to real estate occupiers owners and investors worldwide including global corporate solutionsbrokerage property and asset management hotel investment sales and consulting valuation consulting andappraisal services mortgage banking and insightful research Colliers International has been recognizedand ranked by the International Association of Outsourcing Professionalsrsquo Global Outsourcing 100 for 10consecutive years more than any other real estate services firm
collierscom
502 offices in
67 countries on
6 continentsUnited States 140
Canada 31
Latin America 24
Asia Pacific 199
EMEA 108
$23billion inannual revenue
17billion square feetunder management
16300professionalsand staff
MARKET CONTACT
Nadia KahlerVice President | Baltimore+1 443 543 1222nadiakahlercollierscom
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore MD 21201 | USA
+1 443 297 9000
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 37
Single Story Asking Rental Rates
Multistory Asking Rental Rates
3 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
$1900
$1950
$2000
$2050
$2100
$2150
$2200
$2250
$2300
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
$1700
$1750
$1800
$1850
$1900
$1950
$2000
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
Market Area
Annapolis
The Annapolis submarket is located approximately 25 miles
south of Baltimore City and 30 miles east of Washington DC The
local Class A amp B office market consists of 162 properties and
approximately 5700000 square feet of space In the 2nd quarter of
2015 approximately 980000 square feet of this space was vacantor a 172 vacancy rate Capital Bank signed a 6890 sf lease as
the first tenant at Annapolis Corporate Park at 185 Harry S Truman
Parkway KURE Pain Management renewed their lease at 116
Defense Highway for 4737 sf Additionally the Department of Natural
Resources renewed their 5624 sf lease at 1804 West Street As for
sales transactions Greenfield sold 180 amp 190 Admiral Cochrane for a
reported $361 million to Goldman Sachs
Baltimore County East
The Baltimore County East submarket includes Baltimore County
suburban areas located east of Baltimore City defined by the I-95
Corridor as well as I-695 and includes the local markets of White
Marsh Perry Hall Dundalk and Essex In the 2nd quarter of 2015
the submarket included 110 Class A amp B buildings and more than
3600000 sf of space with approximately 380000 square feet of that
space vacant or a 104 vacancy rate Though typically not known
as an office market proximity to major highways and high density
population makes this submarket attractive for retail and industrial
flex users Leading By Example LLC signed a 6693 sf lease at 5026
Campbell Boulevard while BeFit Personal Trainers signed a 2000 sf
lease at 5022 Campbell Boulevard St John Property announced they
would break ground on 3 speculative office buildings and Baltimore
Crossroads building a year of successful leasing of the existing office
buildings during 2014
Baltimore County West
The Baltimore County West submarket is located in the suburban areas
of Baltimore County bordering the western and northwestern portions
of Baltimore City The submarket is defined by I-695 and Reisterstown
Road corridors and includes the local markets of Owings Mills
Pikesville Woodlawn Catonsville and Arbutus This submarket consists
of 296 Class A amp B buildings having approximately 13000000 squarefeet In the 2nd quarter of 2015 nearly 2100000 square feet of that
space was vacant representing a 16 vacancy rate BECO Towers
saw increased activity this quarter with EMG signing a 16000 sf
lease and Insurance Inc signing an 11000 sf lease there Lifebridge
Health became the first office tenant to sign a lease at Foundry Row
taking approximately 75 of the available office space Tourgee and
Associates Inc signed a 22580 sf lease at 600 Red Brook Boulevard
as well
50
95
495
295
395
97
695
695
50
83
1
40
ANNEARUNDEL
BALTIMORECOUNTY
OLL
HARFO
HOWARD
RY
PRINCEGEORGErsquoS
BALTIMORE CITY
ND
Columbia
Annapolis
Baltimore
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 474 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
Baltimore County North
The Baltimore County North submarket incorporates major
thoroughfares including the I-83 corridor as well as I-695 In
addition to the traditional submarkets of Towson and Timonium
the area also includes Hunt Valley Cockeysville and Sparks
The overall Baltimore County North Class A amp B office market
contains 276 properties and approximately 15200000 square
feet of space In the 2nd quarter of 2015 approximately 1900000
square feet of that space was vacant representing a 126
vacancy rate Of the Class A buildings in the Hunt ValleySparks
submarket however that vacancy rate is much lower standing
at just 62 As for lease activity Stegman amp Company signed
a 10319 sf lease at 809 Gleneagles Court and Progressive
Insurance signed a 15000 sf lease at 11350 McCormick Road
Two major development projects were announced this quarter
the first being McCormick Spice Companies decision to stay in
Hunt Valley and build a 320000 sf headquarters at 99 Shawan
Road The second JMT announced they would build a 130000
sf headquarters at 40 Wight Avenue Both projects are being
developed by Greenfield Partners
BWI
The BWI Area submarket is located around the Baltimore
Washington Thurgood Marshall International Airport and includes
Fort George Meade NSA headquarters Linthicum Hanover
Glen Burnie Elkridge and small portions of Howard County
bordering BWI Airport to the west This market consists of 199
properties and more than 13000000 square feet of space In
the 2nd quarter of 2015 approximately 1500000 square feet of
this space was vacant or 116 Although leasing activity was
relatively slow this quarter Oracle renewed Microsrsquo lease at 1025
Airport 100 Way for 87600 sf As for sales activity 200 Hospital
Drive sold for $1865 million dollars to California based American
Healthcare Investors
Downtown Baltimore
The Baltimore City office submarket comprises the traditional
Central Business District (CBD) as well as the adjacent areas
of Harbor East amp Fells Point Canton StadiumWest and SouthBaltimore Within this expanded downtown area there is more
than 13100000 sf of Class A office space In the 2nd quarter of
2015 more than 2050000 square feet of that space was vacant
for lease or sublease or a 1566 vacancy rate As has been the
case in the past office buildings on the Pratt Street corridor fare
better the average ending the year at 921 vacant However
the same cannot be said for properties North of Lombard
Street which currently hold a 2910 vacancy rate Despite an
unsettling quarter with regards to politics within the city office
activity moved forward steadily COPT bought 250 W Pratt for
$635 million while also announcing their intention to buy 100
Light Street As for leasing activity Parson Brinkerhoff signed a
23000 sf lease at 1 E Pratt Street 1215 Fort Avenue had two
tenants sign this quarter Gilbane Building Companies for 12000
sf lease and Kimly Horn for 3400 sf
Harford County
The Harford County submarket is defined by the I-95 and Route
1 Corridors The area includes the local markets of Bel Air
Aberdeen (including Aberdeen Proving Grounds) and Havre
de Grace This market consists of 130 Class A amp B properties
and just under 4100000 square feet of existing space In the
2nd quarter of 2015 about 885000 square feet of that space
was vacant or 217 This market which has been plagued by
oversupply and vacancy saw a slight uptick in activity during
the first half 2015 particularly in Bel Air 4694 Millennium Drivesigned two new tenants Lifoam Industries for 2556 sf and
Systems Technologies for 2544 sf
Howard County
The Howard County submarket is located between Baltimore
MD and Washington DC along the I-95 corridor comprised of
387 Class A amp B buildings and about 18480000 square feet of
space In the 2nd quarter of 2015 approximately 1850000 square
feet of that space was vacant or 10 Several large transactions
occurred in this submarket in the past few months includingFEI signing a 48832 sf lease at 9755 Patuxent Woods Drive
Other significant transactions included Astrum Solar relocating
to 42852 sf at 7101 Riverwood and Zust Bahmeier signing a
99508 sf lease at 1349 Charwood Road Howard County Board
of Education renewed their 8188 sf lease at 9770 Patuxent
Woods Road for 10 years while the Columbia Association signed
a 32850 sf lease for 13 years at 6310 Hillside Court As for
sales transactions Rivers Technology Park sold for $815 million
to Ruppert Properties and 10200 Old Columbia Road sold for
$319 million
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 575 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
Baltimore Office Market Update
Market Comparisons
SUBMARKETCOUNTY TOTAL SF AVERAGE ASKINGRATES
VACANT SF VACANCY CURRENTQUARTER
YTD CURRENT COMPLETED
REGION NAME Net Absorption New Construction
Annapolis 983093983095983091983093983094983091983088 sf 983076983090983093983092983093 983097983095983095983092983095983091 sf 983089983095 983089983093983093983092983093 sf -983090983090983091983089983094 983088 983088
Baltimore County East 983091983094983092983090983091983091983094 sf 983076983090983088983088983088 983091983095983095983090983097983093 sf 983089983088983092 983089983088983096983095983096983096 sf 983089983089983089983091983091983092 sf 983092983096983095983097983088 sf 983088
Baltimore County West 983089983091983088983096983090983092983097983093 sf 983076983090983088983088983088 983090983088983096983089983094983094983096 sf 983089983093983097 -983091983094983094983088983089 sf 983091983097983092983088983093 sf 983089983097983090983088983088983088 sf 983088
Baltimore County North 983089983093983090983092983088983089983090983089 sf 983076983090983088983089983093 983089983096983096983097983088983090983091 sf 983089983090983092 983097983089983088983088983097 sf -983094983094983096983097 sf 983088 983092983090983095983088983092 sf
BWI 983089983091983088983095983093983096983096983091 sf 983076983090983092983090983093 983089983093983091983091983093983090983089 sf 983089983089983095 -983094983090983093983094983088 sf -983092983091983090983096983096 sf 983088 983088
Downtown Baltimore 983089983091983089983088983094983089983089983097 sf 983076983090983090983088983088 983090983088983093983090983095983094983093 sf 983089983093983094 983094983088983092983089983096 sf 983089983096983094983094983094983094 sf 983094983093983089983092983093983094 sf 983088
Harford County 983092983088983097983088983094983093983097 sf 983076983090983091983089983093 983096983096983094983092983090983093 sf 983090983089983095 983089983089983092983097983094 sf 983097983092983094983090 sf 983088 983088
Howard County 983089983096983092983096983091983095983090983097 sf 983076983090983092983088983093 983089983095983097983097983091983092983095 sf 983097983095 983089983089983088983092983090983090 sf 983089983094983092983096983090983089 sf 983089983090983094983088983088 sf 983088
Quarterly Comparisons and Totals - Baltimore Metro Class A
QUARTER TOTAL RBA VACANT SF VACANCY CURRENT Q
ABSORPTIONYTD ABSORPTION
CURRENTCONSTRUCTION
COMPLETEDDELIVERIES
AVERAGE RENTALRATES
Q983090 983090983088983089983093 983092983093983096983097983089983096983089983093 sf 983093983090983092983089983092983097983089 sf 983089983089983092 983091983092983090983091983096983094 sf 983095983094983088983090983091983096 sf 983089983088983093983096983090983089983094 sf 983092983090983095983088983092 sf 983076983090983092983089983094
Q983089 983090983088983089983093 983092983093983096983092983097983089983089983089 sf 983093983093983092983089983089983095983091 sf 983089983090983089 983092983089983095983096983093983090 sf 983092983089983095983096983093983090 sf 983097983093983089983096983088983088 sf 983088 983076983090983092983088983094
Q983092 983090983088983089983092 983092983093983096983092983097983089983089983089 sf 983093983097983093983097983088983090983093 sf 983089983091983088 -983090983088983092983092983095983089 sf 983089983090983096983094983094983090983095 sf 983097983093983089983096983088983088 sf 983088 983076983090983091983092983097
Q983091 983090983088983089983092 983092983093983096983092983097983089983089983089 983093983095983093983092983093983093983092 sf 983089983090983094 983089983090983091983090983090983092 sf 983089983092983097983089983088983097983096 sf 983097983093983089983096983088983088 sf 983090983095983090983088983088983088 sf 983076983090983091983096983090
Q983090 983090983088983089983092 983092983093983093983095983095983089983089983089 sf 983093983094983088983093983095983095983096 sf 983089983090983091 983090983095983095983094983091983089 sf 983089983091983094983095983096983095983092 sf 983093983088983094983095983088983092 sf 983088 983076983090983091983091983094
Update - Recent Transactions in the Market
Select Sales Activity
PROPERTY ADDRESS BUYER SALE PRICE SF PRICESF
983090983093983088 W Pratt Street COPT 983076983094983091983093983088983088983088983088983088 983091983094983096983089983097983092 sf 983076983089983095983090983092983094
983090983088983088 Hospital Drive American Healthcare REIT 983076983089983096983094983093983088983088983088983088 983095983093983095983089983096 sf 983076983090983092983094983091983089
983089983096983088 Admiral Cochrane Drive Goldman Sachs 983076983091983094983089983088983088983088983088983088 983089983090983096983095983088983091 sf 983076983089983096983090983096983091
983097983093983092 Ridgebrook Road Sparks Capital Group 983076983089983091983093983088983088983088983088 983094983089983095983088983095 sf 983076983089983093983093983088983096
983094983096983089983094 Deerpath Rod RAO Manufacturing Company Holdings LLC 983076983090983093983088983088983088983088983088 983089983095983088983091983090 sf 983076983089983092983094983095983096
Select Lease Signings
TENANT LEASED SF ADDRESS CITY
FEI Systems 983092983096983096983091983090 sf 983097983095983093983093 Patuxent Woods Drive Columbia
Wolters Kluwer 983091983093983089983088983088 sf 983091983090983091-983091983093983089 W Camden Street Baltimore
Niles Barton amp Wilmer LLP 983090983089983096983091983093 sf 983089983089983089 S Calvert Street Baltimore
Parson Brinckerhoff Inc 983090983089983089983096983090 sf 983089 E Pratt Street Baltimore
Lifebridge Health 983090983096983097983091983095 sf 983089983088983089983088983088 Reisterstown Road Owings Mills
Tourgee and Associates 983090983090983093983096983088 sf 983094983088983088 Red Brook Boulevard Owings Mills
Gantech Federal 983089983096983090983095983096 sf 983097983089983095983093 Guilford Road Columbia
EMG 983089983094983089983091983094 sf 983089983088983092983094983089 Mill Run Circle Owings Mills
University of Maryland Medical Center 983090983094983088983088983088 sf 983093983097983088983088 Waterloo Road Ellicott City
Gilbane Building Company 983089983090983088983088983088 sf 983089983090983089983093 Fort Avenue Baltimore
Columbia Association 983091983090983096983093983091 sf 983094983091983089983088 Hillside Court Columbia
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 676 North American Research amp Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright copy 2015 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable Whileevery reasonable effort has been made to ensure its accuracy we cannot guarantee it Noresponsibility is assumed for any inaccuracies Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore Maryland 21201+1 443 297 9000collierscomgreaterbaltimore
FOR MORE INFORMATION
Nadia Kahler
Vice President | Baltimore+1 443 543 1222NadiaKahlercollierscom
The Baltimore Regional office market consists of Baltimore City and the surrounding counties of Anne Arundel Howard Baltimoreand Harford The Colliers defined submarkets of Annapolis BWI Area Howard County Baltimore County West Baltimore CountyNorth Baltimore County East and Harford County are all located within this Region
50
95
95
495
70
295
395
97
695
695
301
50
83
95
1
40
301
40
1
ANNEARUNDEL
BALTIMORECOUNTY
CARO
CARROLL
CECIL
HARFORD
HOWARDKENT
MONTGOMERY
PRINCEGEORGErsquoS
QUEEANNE
BALTIMORE CITY
ARLINGTON
DISTRICTOF COLUMBIA
PENNSYLVANIA
MARYLAND
Columbia
Annapolis
Baltimore
Washington
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 77
Copyright copy 2015 Colliers International
The information contained herein has been obtained from sources deemed reliable While every reasonable effort has been made to
ensure its accuracy we cannot guarantee it No responsibility is assumed for any inaccuracies Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report
About Colliers International
Colliers International is a global leader in commercial real estate services with more than 16300 professionals operating out of 502 offices in 67 countries Colliers International delivers a full range ofservices to real estate occupiers owners and investors worldwide including global corporate solutionsbrokerage property and asset management hotel investment sales and consulting valuation consulting andappraisal services mortgage banking and insightful research Colliers International has been recognizedand ranked by the International Association of Outsourcing Professionalsrsquo Global Outsourcing 100 for 10consecutive years more than any other real estate services firm
collierscom
502 offices in
67 countries on
6 continentsUnited States 140
Canada 31
Latin America 24
Asia Pacific 199
EMEA 108
$23billion inannual revenue
17billion square feetunder management
16300professionalsand staff
MARKET CONTACT
Nadia KahlerVice President | Baltimore+1 443 543 1222nadiakahlercollierscom
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore MD 21201 | USA
+1 443 297 9000
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 474 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
Baltimore County North
The Baltimore County North submarket incorporates major
thoroughfares including the I-83 corridor as well as I-695 In
addition to the traditional submarkets of Towson and Timonium
the area also includes Hunt Valley Cockeysville and Sparks
The overall Baltimore County North Class A amp B office market
contains 276 properties and approximately 15200000 square
feet of space In the 2nd quarter of 2015 approximately 1900000
square feet of that space was vacant representing a 126
vacancy rate Of the Class A buildings in the Hunt ValleySparks
submarket however that vacancy rate is much lower standing
at just 62 As for lease activity Stegman amp Company signed
a 10319 sf lease at 809 Gleneagles Court and Progressive
Insurance signed a 15000 sf lease at 11350 McCormick Road
Two major development projects were announced this quarter
the first being McCormick Spice Companies decision to stay in
Hunt Valley and build a 320000 sf headquarters at 99 Shawan
Road The second JMT announced they would build a 130000
sf headquarters at 40 Wight Avenue Both projects are being
developed by Greenfield Partners
BWI
The BWI Area submarket is located around the Baltimore
Washington Thurgood Marshall International Airport and includes
Fort George Meade NSA headquarters Linthicum Hanover
Glen Burnie Elkridge and small portions of Howard County
bordering BWI Airport to the west This market consists of 199
properties and more than 13000000 square feet of space In
the 2nd quarter of 2015 approximately 1500000 square feet of
this space was vacant or 116 Although leasing activity was
relatively slow this quarter Oracle renewed Microsrsquo lease at 1025
Airport 100 Way for 87600 sf As for sales activity 200 Hospital
Drive sold for $1865 million dollars to California based American
Healthcare Investors
Downtown Baltimore
The Baltimore City office submarket comprises the traditional
Central Business District (CBD) as well as the adjacent areas
of Harbor East amp Fells Point Canton StadiumWest and SouthBaltimore Within this expanded downtown area there is more
than 13100000 sf of Class A office space In the 2nd quarter of
2015 more than 2050000 square feet of that space was vacant
for lease or sublease or a 1566 vacancy rate As has been the
case in the past office buildings on the Pratt Street corridor fare
better the average ending the year at 921 vacant However
the same cannot be said for properties North of Lombard
Street which currently hold a 2910 vacancy rate Despite an
unsettling quarter with regards to politics within the city office
activity moved forward steadily COPT bought 250 W Pratt for
$635 million while also announcing their intention to buy 100
Light Street As for leasing activity Parson Brinkerhoff signed a
23000 sf lease at 1 E Pratt Street 1215 Fort Avenue had two
tenants sign this quarter Gilbane Building Companies for 12000
sf lease and Kimly Horn for 3400 sf
Harford County
The Harford County submarket is defined by the I-95 and Route
1 Corridors The area includes the local markets of Bel Air
Aberdeen (including Aberdeen Proving Grounds) and Havre
de Grace This market consists of 130 Class A amp B properties
and just under 4100000 square feet of existing space In the
2nd quarter of 2015 about 885000 square feet of that space
was vacant or 217 This market which has been plagued by
oversupply and vacancy saw a slight uptick in activity during
the first half 2015 particularly in Bel Air 4694 Millennium Drivesigned two new tenants Lifoam Industries for 2556 sf and
Systems Technologies for 2544 sf
Howard County
The Howard County submarket is located between Baltimore
MD and Washington DC along the I-95 corridor comprised of
387 Class A amp B buildings and about 18480000 square feet of
space In the 2nd quarter of 2015 approximately 1850000 square
feet of that space was vacant or 10 Several large transactions
occurred in this submarket in the past few months includingFEI signing a 48832 sf lease at 9755 Patuxent Woods Drive
Other significant transactions included Astrum Solar relocating
to 42852 sf at 7101 Riverwood and Zust Bahmeier signing a
99508 sf lease at 1349 Charwood Road Howard County Board
of Education renewed their 8188 sf lease at 9770 Patuxent
Woods Road for 10 years while the Columbia Association signed
a 32850 sf lease for 13 years at 6310 Hillside Court As for
sales transactions Rivers Technology Park sold for $815 million
to Ruppert Properties and 10200 Old Columbia Road sold for
$319 million
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 575 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
Baltimore Office Market Update
Market Comparisons
SUBMARKETCOUNTY TOTAL SF AVERAGE ASKINGRATES
VACANT SF VACANCY CURRENTQUARTER
YTD CURRENT COMPLETED
REGION NAME Net Absorption New Construction
Annapolis 983093983095983091983093983094983091983088 sf 983076983090983093983092983093 983097983095983095983092983095983091 sf 983089983095 983089983093983093983092983093 sf -983090983090983091983089983094 983088 983088
Baltimore County East 983091983094983092983090983091983091983094 sf 983076983090983088983088983088 983091983095983095983090983097983093 sf 983089983088983092 983089983088983096983095983096983096 sf 983089983089983089983091983091983092 sf 983092983096983095983097983088 sf 983088
Baltimore County West 983089983091983088983096983090983092983097983093 sf 983076983090983088983088983088 983090983088983096983089983094983094983096 sf 983089983093983097 -983091983094983094983088983089 sf 983091983097983092983088983093 sf 983089983097983090983088983088983088 sf 983088
Baltimore County North 983089983093983090983092983088983089983090983089 sf 983076983090983088983089983093 983089983096983096983097983088983090983091 sf 983089983090983092 983097983089983088983088983097 sf -983094983094983096983097 sf 983088 983092983090983095983088983092 sf
BWI 983089983091983088983095983093983096983096983091 sf 983076983090983092983090983093 983089983093983091983091983093983090983089 sf 983089983089983095 -983094983090983093983094983088 sf -983092983091983090983096983096 sf 983088 983088
Downtown Baltimore 983089983091983089983088983094983089983089983097 sf 983076983090983090983088983088 983090983088983093983090983095983094983093 sf 983089983093983094 983094983088983092983089983096 sf 983089983096983094983094983094983094 sf 983094983093983089983092983093983094 sf 983088
Harford County 983092983088983097983088983094983093983097 sf 983076983090983091983089983093 983096983096983094983092983090983093 sf 983090983089983095 983089983089983092983097983094 sf 983097983092983094983090 sf 983088 983088
Howard County 983089983096983092983096983091983095983090983097 sf 983076983090983092983088983093 983089983095983097983097983091983092983095 sf 983097983095 983089983089983088983092983090983090 sf 983089983094983092983096983090983089 sf 983089983090983094983088983088 sf 983088
Quarterly Comparisons and Totals - Baltimore Metro Class A
QUARTER TOTAL RBA VACANT SF VACANCY CURRENT Q
ABSORPTIONYTD ABSORPTION
CURRENTCONSTRUCTION
COMPLETEDDELIVERIES
AVERAGE RENTALRATES
Q983090 983090983088983089983093 983092983093983096983097983089983096983089983093 sf 983093983090983092983089983092983097983089 sf 983089983089983092 983091983092983090983091983096983094 sf 983095983094983088983090983091983096 sf 983089983088983093983096983090983089983094 sf 983092983090983095983088983092 sf 983076983090983092983089983094
Q983089 983090983088983089983093 983092983093983096983092983097983089983089983089 sf 983093983093983092983089983089983095983091 sf 983089983090983089 983092983089983095983096983093983090 sf 983092983089983095983096983093983090 sf 983097983093983089983096983088983088 sf 983088 983076983090983092983088983094
Q983092 983090983088983089983092 983092983093983096983092983097983089983089983089 sf 983093983097983093983097983088983090983093 sf 983089983091983088 -983090983088983092983092983095983089 sf 983089983090983096983094983094983090983095 sf 983097983093983089983096983088983088 sf 983088 983076983090983091983092983097
Q983091 983090983088983089983092 983092983093983096983092983097983089983089983089 983093983095983093983092983093983093983092 sf 983089983090983094 983089983090983091983090983090983092 sf 983089983092983097983089983088983097983096 sf 983097983093983089983096983088983088 sf 983090983095983090983088983088983088 sf 983076983090983091983096983090
Q983090 983090983088983089983092 983092983093983093983095983095983089983089983089 sf 983093983094983088983093983095983095983096 sf 983089983090983091 983090983095983095983094983091983089 sf 983089983091983094983095983096983095983092 sf 983093983088983094983095983088983092 sf 983088 983076983090983091983091983094
Update - Recent Transactions in the Market
Select Sales Activity
PROPERTY ADDRESS BUYER SALE PRICE SF PRICESF
983090983093983088 W Pratt Street COPT 983076983094983091983093983088983088983088983088983088 983091983094983096983089983097983092 sf 983076983089983095983090983092983094
983090983088983088 Hospital Drive American Healthcare REIT 983076983089983096983094983093983088983088983088983088 983095983093983095983089983096 sf 983076983090983092983094983091983089
983089983096983088 Admiral Cochrane Drive Goldman Sachs 983076983091983094983089983088983088983088983088983088 983089983090983096983095983088983091 sf 983076983089983096983090983096983091
983097983093983092 Ridgebrook Road Sparks Capital Group 983076983089983091983093983088983088983088983088 983094983089983095983088983095 sf 983076983089983093983093983088983096
983094983096983089983094 Deerpath Rod RAO Manufacturing Company Holdings LLC 983076983090983093983088983088983088983088983088 983089983095983088983091983090 sf 983076983089983092983094983095983096
Select Lease Signings
TENANT LEASED SF ADDRESS CITY
FEI Systems 983092983096983096983091983090 sf 983097983095983093983093 Patuxent Woods Drive Columbia
Wolters Kluwer 983091983093983089983088983088 sf 983091983090983091-983091983093983089 W Camden Street Baltimore
Niles Barton amp Wilmer LLP 983090983089983096983091983093 sf 983089983089983089 S Calvert Street Baltimore
Parson Brinckerhoff Inc 983090983089983089983096983090 sf 983089 E Pratt Street Baltimore
Lifebridge Health 983090983096983097983091983095 sf 983089983088983089983088983088 Reisterstown Road Owings Mills
Tourgee and Associates 983090983090983093983096983088 sf 983094983088983088 Red Brook Boulevard Owings Mills
Gantech Federal 983089983096983090983095983096 sf 983097983089983095983093 Guilford Road Columbia
EMG 983089983094983089983091983094 sf 983089983088983092983094983089 Mill Run Circle Owings Mills
University of Maryland Medical Center 983090983094983088983088983088 sf 983093983097983088983088 Waterloo Road Ellicott City
Gilbane Building Company 983089983090983088983088983088 sf 983089983090983089983093 Fort Avenue Baltimore
Columbia Association 983091983090983096983093983091 sf 983094983091983089983088 Hillside Court Columbia
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 676 North American Research amp Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright copy 2015 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable Whileevery reasonable effort has been made to ensure its accuracy we cannot guarantee it Noresponsibility is assumed for any inaccuracies Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore Maryland 21201+1 443 297 9000collierscomgreaterbaltimore
FOR MORE INFORMATION
Nadia Kahler
Vice President | Baltimore+1 443 543 1222NadiaKahlercollierscom
The Baltimore Regional office market consists of Baltimore City and the surrounding counties of Anne Arundel Howard Baltimoreand Harford The Colliers defined submarkets of Annapolis BWI Area Howard County Baltimore County West Baltimore CountyNorth Baltimore County East and Harford County are all located within this Region
50
95
95
495
70
295
395
97
695
695
301
50
83
95
1
40
301
40
1
ANNEARUNDEL
BALTIMORECOUNTY
CARO
CARROLL
CECIL
HARFORD
HOWARDKENT
MONTGOMERY
PRINCEGEORGErsquoS
QUEEANNE
BALTIMORE CITY
ARLINGTON
DISTRICTOF COLUMBIA
PENNSYLVANIA
MARYLAND
Columbia
Annapolis
Baltimore
Washington
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 77
Copyright copy 2015 Colliers International
The information contained herein has been obtained from sources deemed reliable While every reasonable effort has been made to
ensure its accuracy we cannot guarantee it No responsibility is assumed for any inaccuracies Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report
About Colliers International
Colliers International is a global leader in commercial real estate services with more than 16300 professionals operating out of 502 offices in 67 countries Colliers International delivers a full range ofservices to real estate occupiers owners and investors worldwide including global corporate solutionsbrokerage property and asset management hotel investment sales and consulting valuation consulting andappraisal services mortgage banking and insightful research Colliers International has been recognizedand ranked by the International Association of Outsourcing Professionalsrsquo Global Outsourcing 100 for 10consecutive years more than any other real estate services firm
collierscom
502 offices in
67 countries on
6 continentsUnited States 140
Canada 31
Latin America 24
Asia Pacific 199
EMEA 108
$23billion inannual revenue
17billion square feetunder management
16300professionalsand staff
MARKET CONTACT
Nadia KahlerVice President | Baltimore+1 443 543 1222nadiakahlercollierscom
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore MD 21201 | USA
+1 443 297 9000
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 575 Baltimore Region Research amp Forecast | Q2 2015 | Office Market Report | Colliers International
Baltimore Office Market Update
Market Comparisons
SUBMARKETCOUNTY TOTAL SF AVERAGE ASKINGRATES
VACANT SF VACANCY CURRENTQUARTER
YTD CURRENT COMPLETED
REGION NAME Net Absorption New Construction
Annapolis 983093983095983091983093983094983091983088 sf 983076983090983093983092983093 983097983095983095983092983095983091 sf 983089983095 983089983093983093983092983093 sf -983090983090983091983089983094 983088 983088
Baltimore County East 983091983094983092983090983091983091983094 sf 983076983090983088983088983088 983091983095983095983090983097983093 sf 983089983088983092 983089983088983096983095983096983096 sf 983089983089983089983091983091983092 sf 983092983096983095983097983088 sf 983088
Baltimore County West 983089983091983088983096983090983092983097983093 sf 983076983090983088983088983088 983090983088983096983089983094983094983096 sf 983089983093983097 -983091983094983094983088983089 sf 983091983097983092983088983093 sf 983089983097983090983088983088983088 sf 983088
Baltimore County North 983089983093983090983092983088983089983090983089 sf 983076983090983088983089983093 983089983096983096983097983088983090983091 sf 983089983090983092 983097983089983088983088983097 sf -983094983094983096983097 sf 983088 983092983090983095983088983092 sf
BWI 983089983091983088983095983093983096983096983091 sf 983076983090983092983090983093 983089983093983091983091983093983090983089 sf 983089983089983095 -983094983090983093983094983088 sf -983092983091983090983096983096 sf 983088 983088
Downtown Baltimore 983089983091983089983088983094983089983089983097 sf 983076983090983090983088983088 983090983088983093983090983095983094983093 sf 983089983093983094 983094983088983092983089983096 sf 983089983096983094983094983094983094 sf 983094983093983089983092983093983094 sf 983088
Harford County 983092983088983097983088983094983093983097 sf 983076983090983091983089983093 983096983096983094983092983090983093 sf 983090983089983095 983089983089983092983097983094 sf 983097983092983094983090 sf 983088 983088
Howard County 983089983096983092983096983091983095983090983097 sf 983076983090983092983088983093 983089983095983097983097983091983092983095 sf 983097983095 983089983089983088983092983090983090 sf 983089983094983092983096983090983089 sf 983089983090983094983088983088 sf 983088
Quarterly Comparisons and Totals - Baltimore Metro Class A
QUARTER TOTAL RBA VACANT SF VACANCY CURRENT Q
ABSORPTIONYTD ABSORPTION
CURRENTCONSTRUCTION
COMPLETEDDELIVERIES
AVERAGE RENTALRATES
Q983090 983090983088983089983093 983092983093983096983097983089983096983089983093 sf 983093983090983092983089983092983097983089 sf 983089983089983092 983091983092983090983091983096983094 sf 983095983094983088983090983091983096 sf 983089983088983093983096983090983089983094 sf 983092983090983095983088983092 sf 983076983090983092983089983094
Q983089 983090983088983089983093 983092983093983096983092983097983089983089983089 sf 983093983093983092983089983089983095983091 sf 983089983090983089 983092983089983095983096983093983090 sf 983092983089983095983096983093983090 sf 983097983093983089983096983088983088 sf 983088 983076983090983092983088983094
Q983092 983090983088983089983092 983092983093983096983092983097983089983089983089 sf 983093983097983093983097983088983090983093 sf 983089983091983088 -983090983088983092983092983095983089 sf 983089983090983096983094983094983090983095 sf 983097983093983089983096983088983088 sf 983088 983076983090983091983092983097
Q983091 983090983088983089983092 983092983093983096983092983097983089983089983089 983093983095983093983092983093983093983092 sf 983089983090983094 983089983090983091983090983090983092 sf 983089983092983097983089983088983097983096 sf 983097983093983089983096983088983088 sf 983090983095983090983088983088983088 sf 983076983090983091983096983090
Q983090 983090983088983089983092 983092983093983093983095983095983089983089983089 sf 983093983094983088983093983095983095983096 sf 983089983090983091 983090983095983095983094983091983089 sf 983089983091983094983095983096983095983092 sf 983093983088983094983095983088983092 sf 983088 983076983090983091983091983094
Update - Recent Transactions in the Market
Select Sales Activity
PROPERTY ADDRESS BUYER SALE PRICE SF PRICESF
983090983093983088 W Pratt Street COPT 983076983094983091983093983088983088983088983088983088 983091983094983096983089983097983092 sf 983076983089983095983090983092983094
983090983088983088 Hospital Drive American Healthcare REIT 983076983089983096983094983093983088983088983088983088 983095983093983095983089983096 sf 983076983090983092983094983091983089
983089983096983088 Admiral Cochrane Drive Goldman Sachs 983076983091983094983089983088983088983088983088983088 983089983090983096983095983088983091 sf 983076983089983096983090983096983091
983097983093983092 Ridgebrook Road Sparks Capital Group 983076983089983091983093983088983088983088983088 983094983089983095983088983095 sf 983076983089983093983093983088983096
983094983096983089983094 Deerpath Rod RAO Manufacturing Company Holdings LLC 983076983090983093983088983088983088983088983088 983089983095983088983091983090 sf 983076983089983092983094983095983096
Select Lease Signings
TENANT LEASED SF ADDRESS CITY
FEI Systems 983092983096983096983091983090 sf 983097983095983093983093 Patuxent Woods Drive Columbia
Wolters Kluwer 983091983093983089983088983088 sf 983091983090983091-983091983093983089 W Camden Street Baltimore
Niles Barton amp Wilmer LLP 983090983089983096983091983093 sf 983089983089983089 S Calvert Street Baltimore
Parson Brinckerhoff Inc 983090983089983089983096983090 sf 983089 E Pratt Street Baltimore
Lifebridge Health 983090983096983097983091983095 sf 983089983088983089983088983088 Reisterstown Road Owings Mills
Tourgee and Associates 983090983090983093983096983088 sf 983094983088983088 Red Brook Boulevard Owings Mills
Gantech Federal 983089983096983090983095983096 sf 983097983089983095983093 Guilford Road Columbia
EMG 983089983094983089983091983094 sf 983089983088983092983094983089 Mill Run Circle Owings Mills
University of Maryland Medical Center 983090983094983088983088983088 sf 983093983097983088983088 Waterloo Road Ellicott City
Gilbane Building Company 983089983090983088983088983088 sf 983089983090983089983093 Fort Avenue Baltimore
Columbia Association 983091983090983096983093983091 sf 983094983091983089983088 Hillside Court Columbia
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 676 North American Research amp Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright copy 2015 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable Whileevery reasonable effort has been made to ensure its accuracy we cannot guarantee it Noresponsibility is assumed for any inaccuracies Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore Maryland 21201+1 443 297 9000collierscomgreaterbaltimore
FOR MORE INFORMATION
Nadia Kahler
Vice President | Baltimore+1 443 543 1222NadiaKahlercollierscom
The Baltimore Regional office market consists of Baltimore City and the surrounding counties of Anne Arundel Howard Baltimoreand Harford The Colliers defined submarkets of Annapolis BWI Area Howard County Baltimore County West Baltimore CountyNorth Baltimore County East and Harford County are all located within this Region
50
95
95
495
70
295
395
97
695
695
301
50
83
95
1
40
301
40
1
ANNEARUNDEL
BALTIMORECOUNTY
CARO
CARROLL
CECIL
HARFORD
HOWARDKENT
MONTGOMERY
PRINCEGEORGErsquoS
QUEEANNE
BALTIMORE CITY
ARLINGTON
DISTRICTOF COLUMBIA
PENNSYLVANIA
MARYLAND
Columbia
Annapolis
Baltimore
Washington
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 77
Copyright copy 2015 Colliers International
The information contained herein has been obtained from sources deemed reliable While every reasonable effort has been made to
ensure its accuracy we cannot guarantee it No responsibility is assumed for any inaccuracies Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report
About Colliers International
Colliers International is a global leader in commercial real estate services with more than 16300 professionals operating out of 502 offices in 67 countries Colliers International delivers a full range ofservices to real estate occupiers owners and investors worldwide including global corporate solutionsbrokerage property and asset management hotel investment sales and consulting valuation consulting andappraisal services mortgage banking and insightful research Colliers International has been recognizedand ranked by the International Association of Outsourcing Professionalsrsquo Global Outsourcing 100 for 10consecutive years more than any other real estate services firm
collierscom
502 offices in
67 countries on
6 continentsUnited States 140
Canada 31
Latin America 24
Asia Pacific 199
EMEA 108
$23billion inannual revenue
17billion square feetunder management
16300professionalsand staff
MARKET CONTACT
Nadia KahlerVice President | Baltimore+1 443 543 1222nadiakahlercollierscom
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore MD 21201 | USA
+1 443 297 9000
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 676 North American Research amp Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright copy 2015 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable Whileevery reasonable effort has been made to ensure its accuracy we cannot guarantee it Noresponsibility is assumed for any inaccuracies Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore Maryland 21201+1 443 297 9000collierscomgreaterbaltimore
FOR MORE INFORMATION
Nadia Kahler
Vice President | Baltimore+1 443 543 1222NadiaKahlercollierscom
The Baltimore Regional office market consists of Baltimore City and the surrounding counties of Anne Arundel Howard Baltimoreand Harford The Colliers defined submarkets of Annapolis BWI Area Howard County Baltimore County West Baltimore CountyNorth Baltimore County East and Harford County are all located within this Region
50
95
95
495
70
295
395
97
695
695
301
50
83
95
1
40
301
40
1
ANNEARUNDEL
BALTIMORECOUNTY
CARO
CARROLL
CECIL
HARFORD
HOWARDKENT
MONTGOMERY
PRINCEGEORGErsquoS
QUEEANNE
BALTIMORE CITY
ARLINGTON
DISTRICTOF COLUMBIA
PENNSYLVANIA
MARYLAND
Columbia
Annapolis
Baltimore
Washington
I
I
BWI ThurgoodMarshall Airport
FortMeade
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 77
Copyright copy 2015 Colliers International
The information contained herein has been obtained from sources deemed reliable While every reasonable effort has been made to
ensure its accuracy we cannot guarantee it No responsibility is assumed for any inaccuracies Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report
About Colliers International
Colliers International is a global leader in commercial real estate services with more than 16300 professionals operating out of 502 offices in 67 countries Colliers International delivers a full range ofservices to real estate occupiers owners and investors worldwide including global corporate solutionsbrokerage property and asset management hotel investment sales and consulting valuation consulting andappraisal services mortgage banking and insightful research Colliers International has been recognizedand ranked by the International Association of Outsourcing Professionalsrsquo Global Outsourcing 100 for 10consecutive years more than any other real estate services firm
collierscom
502 offices in
67 countries on
6 continentsUnited States 140
Canada 31
Latin America 24
Asia Pacific 199
EMEA 108
$23billion inannual revenue
17billion square feetunder management
16300professionalsand staff
MARKET CONTACT
Nadia KahlerVice President | Baltimore+1 443 543 1222nadiakahlercollierscom
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore MD 21201 | USA
+1 443 297 9000
8202019 Office Market Maintainspdf
httpslidepdfcomreaderfulloffice-market-maintainspdf 77
Copyright copy 2015 Colliers International
The information contained herein has been obtained from sources deemed reliable While every reasonable effort has been made to
ensure its accuracy we cannot guarantee it No responsibility is assumed for any inaccuracies Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report
About Colliers International
Colliers International is a global leader in commercial real estate services with more than 16300 professionals operating out of 502 offices in 67 countries Colliers International delivers a full range ofservices to real estate occupiers owners and investors worldwide including global corporate solutionsbrokerage property and asset management hotel investment sales and consulting valuation consulting andappraisal services mortgage banking and insightful research Colliers International has been recognizedand ranked by the International Association of Outsourcing Professionalsrsquo Global Outsourcing 100 for 10consecutive years more than any other real estate services firm
collierscom
502 offices in
67 countries on
6 continentsUnited States 140
Canada 31
Latin America 24
Asia Pacific 199
EMEA 108
$23billion inannual revenue
17billion square feetunder management
16300professionalsand staff
MARKET CONTACT
Nadia KahlerVice President | Baltimore+1 443 543 1222nadiakahlercollierscom
Colliers International | Baltimore100 North Charles Street Suite 1710Baltimore MD 21201 | USA
+1 443 297 9000