JLL: Prince George’s County Poised For Class A Industrial Demand
Typically the county has seen a higher volume of Class B and Class C industrial leases signed than Class A over the last five years.
WASHINGTON, DC–An analysis by JLL suggests that Prince George’s County could be the recipient of some 3.3-million-square feet of Class A warehouse space for which national distributors have requirements in the Washington DC area. It would be a departure for the county, which has typically seen a higher volume of Class B and Class C industrial leases signed than Class A leases signed over the last five years.
Over that period, according to JLL, 173 Class B and Class C industrial leases closed, compared to only 47 Class A industrial leases. As a result, current vacancy for the Class B and Class C market, 8.7%, is half that of the Class A market, 17%.
Now, though, demand is shifting towards large Class A product. JLL writes that:
Since the start of 2015, nine Class A leases larger than 75,000 s.f. signed in the county by national users. Among them, Starbucks and Benjamin Moore took down 130,000 s.f. and 90,000 s.f. of new construction, respectively, both targeting Prince George’s County for their regional distribution hubs.
With 20 blocks of space larger than 75,000 square feet sitting vacant, Prince George’s County is primed for the 3.3 million-square feet of warehousing space looking for a home in the area. As distributors look to increase last-mile efficiency, Prince George’s County will be a primary destination and thus beneficiary, JLL concludes.