BALTIMORE-McHenry Row, a 175,000-square-foot office and retailbuilding under development in the Locust Point portion ofBaltimore’s Downtown is now 75% preleased--an achievement thatseems to ignore a vacancy rate in the city that is close to 18%,according to Joe Nolan of NAI KLNB.

NAI KLNB and Cushman & Wakefield are handling the officeleasing for the mixed-use project for developer Mark Sapperstein.Tenants that have inked deals recently include Gkv, which announcedit would relocate its corporate headquarters to McHenry Row, aswell as the Baltimore Metropolitan Council and KCITechnologies.

Asking rates for the office portion are $25.75 per square foot,plus utilities. There are few to no office buildings underdevelopment in Baltimore now, Nolan says--but the city has yet toenter supply-constrained territory. He attributes the high level ofpreleasing to the building’s location across from the waterfront,making it very easy to get in and out of Baltimore. Also, eventhough the building is located in the Downtown market, it offerssuburban amenities, he says--namely free indoor parking.