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SAVAGE, MD-Renewals have become the bread and butter for most building owners in the DC area in recent months – and, increasingly, across most asset types. While the trend for renewal activity in office space has been clear for a while, it is now becoming plain in the industrial and warehouse space as well.

The latest example is Invesco Real Estate, which owns several industrial assets in the region. A tenant, Aireco Supply, just renewed 40,560 square feet at 8700 Larkin Rd. here, keeping the building at full occupancy. Transwestern senior vice presidents, Tom Gentner, Brian Watts, Mark Glagola and Michael Phipps represented Invesco in the transaction. William S. McCullough of Lincoln Property Co. represented Aireco Supply, a wholesaler of HVAC/R residential and commercial equipment.

Without question renewals are driving activity right now in the industrial space, Gentner tells GlobeSt.com. “They are the only transactions right now.” Asking rates — contrary to some rumors — have remained relatively steady, he adds.

Merrill Turnbull, McCullough’s colleague at Lincoln Property, echos Genter. “We did 1.2 million square feet in transactions last year – and that was a combination of new deals and renewals,” he tells GlobeSt.com. This year by contrast, he says, has been largely about renewals.

The government – another trend seen in the DC office market – is also a factor behind a good bit of the activity. Turnbull and McCullough represented building owner American Realty Advisors in two transactions recently in which the government was the tenant: the National Gallery of Art renewed for 83,608 square feet at 2000 South Club Drive in Landover, MD. In that deal Bob Neuman of JM Zell Partners represented the National Gallery. Also, the Department of Defense renewed for 60,389 square feet at 6340 Columbia Park Rd., also in Landover.

8700 Larkin Rd., located in the Corridor Industrial Park, is a 190,560 square foot warehouse built in 1979. The property is located at the intersection of MD Rt. 32 at U.S. Rt. 1.

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