HYATTSVILLE, MD—Two trades in the local area illustrate an ongoing story in the local industrial markets: increasing interest by institutional investors in markets outside of Baltimore's core. In one deal, a source tells GlobeSt.com that Landover Logistics Center, a 360,550-square foot facililty at 1811 Cabin Branch Dr. in Hyattsville, is trading for approximately $34.5 million, or $96 per square foot. The other deal is 6300 Columbia Park Rd, also in Hyattsville, which a source says is trading for $9.7 million or $7 per square feet.

The buyers respectively are TIAA-CREF and Exeter Property Group.

Robust fundamentals are, of course, the reason for the activity and interest.

Jones Lang LaSalle reports that industrial net absorption topped 1.5 million square feet in 2013 after falling short of one million square feet in 2012. In addition, new construction has broken ground with several build-to-suit projects totaling nearly 2.2 million square feet under construction in Baltimore in the third quarter. There are other projects in the pipeline. The Baltimore/Washington Corridor is seeing asking rates rising 4% year-over-year as concessions fall, JLL also reports. Industrial vacancy rates in Harford and Cecil Counties have also dropped, falling well below 7% at the end of the quarter.

Separately, Cushman & Wakefield report that large tenants seeking space of more than 100,000 square feet have very few properties to choose from-despite 12.4 million square feet of vacant industrial space in greater Baltimore.

"In 2013, the average tenant size requirement increased due to e-commerce initiatives and other recent trends," Cushman & Wakefield wrote in its report. "In 2013, there were more buildings under construction than in recent history."

Instant Insights /

Two Industrial Trades Highlight Institutional Interest Growing Beyond Baltimore

Related Stories

Recommended For You