Industrial Inventory Near Purple Line Likely To Shrink

WASHINGTON, DC–Users of close-in industrial space along the the upcoming Purple Line light-rail system in Suburban Maryland may have a problem: they will likely to be shunted aside in favor of office and apartment uses. That is one conclusion to draw from JLL research on the subject. It notes that there is more than 7 million square feet of industrial and flex inventory that lies within a one-mile radius of one of the 21 station locations of the upcoming Purple Line light-rail system in Suburban Maryland and that competing land uses have already helped push rents higher, with asking rents in Northern Prince George's County reaching $8.41 per square foot, a year-over-year increase of 6.5%.

Excluding multifamily, industrial buildings make up 40% of commercial real estate inventory between ½ and 1 mile away from planned Purple Line stations, JLL says, making the property type a target for long-term redevelopment. The industrial product surrounding future Purple Line stations is well leased with just 4.3% vacancy.

Its conclusion:

With multifamily and office developments becoming the highest and best use scenarios for land surrounding the Purple Line, industrial inventory in affected submarkets is likely to shrink in the coming years. Given the bulk of industrial inventory sits between ½ to a mile from future stations, totaling 115 buildings at an average of just over 45,000 square feet, the trend may be more gradual as redevelopment pushes outward from light rail stops.

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