News
THE MOST POPULAR PROPERTY TYPE
November 8, 2011
| More buyers are lined up for Baltimore industrial properties than any other kind, enough to make you think all these warehouses are full of free birthday cake and iPhone 5s. And why not? Limited supply of Class-A product means rents are spiking, accelerating faster than their average area 3% growth rate. |
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| Cassidy Turley's Jon Carpenter tells us rent-rate rises are trickling into Class-B, too. (We snapped him at a Bisnow industrial event earlier this year with HITT Contracting's Elaine Gray and Steve Bandel, ECS Mid-Atlantic's Mike Sawyers, and Spectrum Building Envelope Consulting's Bo Haering.) He says one-third of the Baltimore region's 150M SF of industrial is owner-occupied, and demand for the rest—mostly institutional-quality space right around the port and down I-95—is strong. Not only is Baltimore's port the supply valve for both its own metro and DC's, but industrial tenantsare recovering stronger than office users are. And industrial buyers are less choosy—call it function over form, since an industrial buyer doesn't get as giddy over a CBD waterfront location. |
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| Jon and colleague Jay Wellschlager repped the sellers in two recent industrial deals and have another closing soon. Angelo Gordon bought the approximately 180k SF Coastal Sunbelt Building in Savage (above, leased to the fruit, veggie, and dairy distributor of the same name) from MCG Capital for $17M, and Abrams Development paid $4M for the 40k SF Deereco 1 in Timonium. Both are fully leased and were built in '84, though the Coastal Sunbelt Building was renovated 20 years later and is leased through 2022 (so your hotel's continental fruit baskets are safe until 2023.) |
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| There are some office deals happening, too, though it helps to be Class-A and in Harbor East. Cassidy Turley's John Campanellarecently repped H&S Properties in recapping the 223k SF 1001 Fleet St with $38.5M of permanent financing. It's leased to Whole Foods, Sylvan Learning, and Old Mutual. |
