ELKRIDGE, MD-United Healthcare Services, an operating division of UnitedHealth Group, has renewed its 43,727-square-foot lease at Lyndwood Executive Center, at 6085 and 6095 Marshalee Dr. The transaction is good news for the building owner, Multi-Employer Property Trust, and for market watchers eager for some sign that a landlord’s market may be on the horizon, no matter how distant.
The fund agreed to an aggressive rental rate for the tenant to stay, CBRE’s Kim Penny tells GlobeSt.com. “But there were no concessions beyond that.” Six months ago, “concessions would have been involved.” Penny, along with colleagues Abby Glassberg Laura Westervelt, represented the owner.
Granted, it is one anecdotal example, but a telling one. The tenant had a number of options available throughout Howard County; it was not, in other words, looking for a marquee location in the East End or CBD.
Vacancies in this market, though, have dropped in the past three months. According to CBRE’s figures, Q4 vacancies clocked in at 15.1%. At the end of Q1, they have reached 14.2%. “Slowly but surely it is getting better for landlords,” she says.
Located off Maryland’s Route 100, the Lyndwood Executive Center consists of two three-story buildings totaling 164,000 square feet. Other tenants include GP Strategies Corp.; Ancile Solutions; Houghton, Mifflin Harcourt Publishing; and Chrysler Group LLC. United Healthcare has been a tenant there since the building delivered in 2002.
With the renewal, the building has a 87.7% occupancy rate, according to Penny. Asking rates for the remaining space are $24.50 per foot, full service.
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