PRINCE GEORGES COUNTY INDUSTRIAL

Net Absorption/Asking Rent

4Q TRAILING AVERAGE
Overall Vacancy
PRINCE GEORGES COUNTY
Industrial Market Snapshot
Second Quarter 2014
Economic Indicators
Q2 13 Q2 14
12-Month
Forecast
D.C. Metro Employment 3.08M 3.08M
D.C. Metro Unemployment 5.5% 4.8%
Baltimore Employment 1.35M 1.36M
Baltimore Unemployment 6.7% 5.5%
U.S. Unemployment 7.5% 6.3%
Economy
The Baltimore-Washington D.C. Consolidated Metropolitan Statistical
Area, the fourth largest population cluster in the United States, has
weathered the economic uncertainty of 2013. Job losses from
government cutbacks have been offset by growth in the Education &
Health Services and Professional & Business Services sectors.
Population growth also remains a primary driver of the
Baltimore-D.C. metro area as consumers continue to demand
increased access to goods and services.
Market Overview
The Prince Georges County industrial market, with direct access
to both the Baltimore and Washington D.C. metropolitan areas,
experienced relatively at demand in the second quarter of 2014.
A few thousand square feet of net negative absorption raised the
vacancy rate slightly to 10.14%. The average rental rate for
industrial product in Prince Georges County has decreased
slightly over the last six months as landlords adjust to the
tempered demand experienced year-to-date.
New construction in Prince Georges County is focused in the
Capitol Heights and Columbia Park submarkets as more than
715,000 square feet of new inventory will represent a 2% increase
to the total industrial inventory. One key factor that is driving new
construction is the low vacancy rate. A 10% vacancy rate is
typically considered an equilibrium level between supply and
demand when the market is in danger of becoming under-
supplied. Another factor is the availability of land, which has
spawned the construction of several new industrial parks
throughout the county in recent years.
Capital Markets activity is strong in Prince Georges County as
investors seek to capitalize on the thriving industrial market that
serves Washington D.C. and Baltimore. Growth at the Port of
Baltimore and in the overall economy are drivers of future demand
that make Prince Georges County and the surrounding industrial
markets an attractive area to invest for both business and
investors.
Market Indicators
Q2 13 Q2 14
12-Month
Forecast
Overall Vacancy 9.9% 10.1%
Net Absorption -145K -3K
Under Construction 92K 715K
Average Asking Rent $7.00 $6.52
5%
6%
7%
8%
9%
10%
11%
12%
13%
2010 2011 2012 2013 2014
Historical Average = 10.5%
$6.60
$6.65
$6.70
$6.75
$6.80
$6.85
$6.90
$6.95
$7.00
$7.05
0
100
200
300
2010 2011 2012 2013 2014
Net Absorption, 000's Asking Rent, $ PSF
www.cassidyturley.com | 2
Key Sales Transactions YTD
TOTAL
BUILDINGS
INVENTORY
DIRECT
VACANT
VACANCY
RATE

CURRENT NET
ABSORPTION
YTD NET
ABSORPTION
UNDER
CONSTRUCTION
AVERAGE
ASKING RENT
(ALL CLASSES)
Submarket
Arena Industrial 19 1,645,108 178,124 10.83% -120,470 -51,267 0 $7.64
Beltsville 86 4,301,343 522,931 12.16% 54,902 103,525 0 $8.86
Bowie 9 492,861 0 0.00% 20,847 20,847 0 $5.95
Branch Avenue Corridor 22 442,105 34,791 7.87% -1,925 -1,925 0 $6.00
Brandywine/PG South 6 1,092,812 16,200 1.48% 0 0 0 $6.75
Capitol Heights 70 3,488,989 217,251 6.23% 103,330 58,103 263,082 $6.20
Cheverly 32 944,854 27,240 2.88% 7,180 7,180 0 $6.00
College Park 27 840,016 76,345 9.09% 6,000 -4,333 0 $7.71
Columbia Park Industrial 49 4,696,509 431,550 9.19% 0 28,051 276,250 $6.13
Eastgate Industrial Center 8 247,919 0 0.00% 0 0 0 $4.40
Fallard Industrial 10 641,599 351,596 54.80% -10,400 -235,218 0 $4.25
Greenbelt 4 348,842 72,190 20.69% 0 0 0 $9.00
Industrial Heights 56 1,299,467 60,233 4.64% -10,000 -10,000 0 $5.77
Landover Industrial 72 6,154,112 526,355 8.55% -26,532 -93,030 0 $5.99
Lanham 13 916,357 53,577 5.85% 12,253 -12,760 0 $8.78
Laurel 37 2,376,201 351,125 14.78% -2,491 31,131 0 $6.85
Martin Industrial/Lafayette 24 428,145 34,338 8.02% 3,831 18,523 0 $5.42
Melford Industrial Park 10 320,840 84,006 26.18% -8,760 -1,260 0 $6.50
National Harbor/Oxon Hill/Fort Wash. 9 162,946 18,900 11.60% -1,400 -1,520 0 $6.00
Penn/Belt North 66 2,478,751 380,517 15.35% -4,282 -14,829 0 $6.09
Penn/Belt South 58 1,181,485 38,844 3.29% -10,324 -2,332 126,000 $6.18
Temple Hills 34 1,055,066 136,940 12.98% 17,253 23,050 0 $6.36
The Brick Yard 9 469,700 0 0.00% 20,701 20,701 49,949 $7.41
Trade Zone Industrial 45 3,946,274 417,259 10.57% -49,945 -24,875 0 $6.42
Upper Marlboro 26 955,537 120,726 12.63% -2,780 -2,780 0 $6.25
Grand Total 801 40,927,838 4,151,038 10.14% -3,012 -143,278 715,281 $6.52
PROPERTY SF SELLER/BUYER PRICE SUBMARKET
1000 Hampton Park Boulevard 138,780 Metzler Real Estate / Terreno Realty $18,050,000 Capitol Heights
1406-1414 Ritchie Marlboro Road 75,766 Apter Holdings / Korth Companies $4,800,000 Capitol Heights
Collington Business & Trade Center 576,652 MGP Real Estate, LLC / Exeter Property Group $37,000,000 Trade Zone Industrial
1811 Cabin Branch Drive 360,550 Oakmont Industrial Group / TIAA-CREF $34,500,000 Columbia Park Industrial
1701 Brightseat Road 216,000 Finmarc Management Inc. / Salus Property Investments $31,650,000 Arena Industrial
PRINCE GEORGES COUNTY
Industrial Market Snapshot
Second Quarter 2014
Matthew Myers
Senior Research Analyst
100 Light Street, Suite 1400
Baltimore, MD 21202
Tel: 410.347.7808
Fax: 410.576.9031
Email: matthew.myers@cassidyturley.com
The information contained within this report is
gathered from multiple sources considered to be
reliable. The information may contain errors or
omissions and is presented without any warranty
or representations as to its accuracy.
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