DTZ-brokered Deals Show Industrial's Strength

BALTIMORE, MD—Two separate transactions—one an investment sale and one a lease—illustrate the growing strength of the Baltimore area's industrial market.

DTZ brokered both transactions.

One was the sale of 670 Chesapeake Park Plaza in Middle River, MD. The 188,710 square foot warehouse sold to Regency Furniture for $7.7 million, or $41 per square foot. Jarred Testa and Tilghman Herring of DTZ represented the seller Deutsche Asset & Wealth Management. James Caronna of KLNB represented the buyer.

In the second deal, Lindenmeyr Munroe signed a lease for 102,179 square feet of Class A bulk distribution space in Building #1 of Preston Gateway North Corporate Park. The park is located on Preston Gateway Drive in Hanover, MD. New York-based Lindenmeyr Munroe is an independent paper and packaging distributor.

Lindenmeyr Munroe was represented by Michael L. Bosica, vice president at DTZ. The landlord, Preston Bruce-PGN, LLC, was represented by Cushman & Wakefield.

Both deals illustrate the health market climate for flex/industrial in the Washington/Baltimore region. 2014 was a strong year with a robust 6.3-million-square feet in net absorption – admittedly aided by several large pre-leased deliveries – while the direct vacancy rate decreased 50 basis points to 9.1%, over the year, according to Delta Associates' latest figures about this sector and market.

Throughout the year investor sentiment rose for industrial product, driving prices and transaction activity near all-time highs during 2014. This trend will almost certainly continue this year, Delta said, as rising demand, coupled with limited availability of desirable spaces, will further tighten market conditions. "We forecast the region's direct vacancy rate will decline to 8.6% year-end 2015, with demand exceeding new supply by approximately 1.4 million-square feet during the next 12 months."