2019-07-04_DTZ戴德梁行_Office_Q2_2019_Baltimore_4页_629kb

报告摘要

Baltimore Office Market Q2 2019 Summary

Core Content

This report provides an overview of the Baltimore office market for the second quarter of 2019, highlighting economic indicators, market trends, key lease and sales transactions, and future outlook.

Economic Indicators

Baltimore Employment: Increased slightly from 1.41M in Q2 2018 to 1.43M in Q2 2019.
Baltimore Unemployment: Decreased by 20 bps to 3.8% in Q2 2019.
U.S. Unemployment: Continued to decline to 3.6% in Q2 2019.
The Baltimore Metro unemployment rate is 20 bps higher than the U.S. rate.

Market Overview

Vacancy Rate: Dropped by 10 bps YOY to 13.0% in Q2 2019.
Net Absorption:
- Q2 2019: 202,185 sf
- Year-to-Date (YTD): 737,225 sf
Under Construction: 850,964 sf as of Q2 2019, below the ten-year average.
Rental Rates: Increased by 1.5% YOY to $23.71 psf.
Class A Rental Rates: Higher than Class B, with BWI Anne Arundel and Columbia South leading at $30.24 psf and $33.17 psf respectively.
Submarkets Performance:
- Greater Annapolis: Led with 385,131 sf of YTD net absorption.
- Howard County South: Driven the Class A submarkets with 111,683 sf of YTD net absorption.
- BWI Airport: Highest vacancy rate at 12.5%, but still showing positive absorption.
- Harford County: High vacancy rate of 28.4%, with negative absorption.
- Suburban West: Lower vacancy rate at 14.4%, with positive absorption.

Key Lease Transactions

101 Schilling Road (83 North): 36,066 sf leased to an undisclosed tenant.
9720 Patuxent Woods Drive (Columbia South): 34,650 sf renewed by NVR, Inc.
7740 Milestone Parkway (BWI Anne Arundel): 30,578 sf leased to an undisclosed tenant.
1501 S Clinton Street (Southeast): 26,621 sf renewed by an undisclosed tenant.

Key Sales Transactions

Shawan Center at Hunt Valley (Columbia North): Sold for $54,000,000 at $99 psf.
1300 Thames Street (Southeast): Sold for $101,000,000 at $387 psf, a trophy sale in the Harbor Point neighborhood.

Outlook

Class A Rents: Expected to outpace Class B rents as tenants seek quality space.
Class B Rents: Likely to remain steady as landlords backfill space vacated by tenants moving to Class A.
Vacancy Rates: May level off and begin to decrease as construction slows.
Landlord Market: Possible softening in the first half of 2020.
Capital Investment: Continued strategic investment is anticipated in the Baltimore market.

Additional Insights

The Baltimore-Washington Corridor continues to influence Class A rental rates.
Port Covington is expected to add a million square feet of inventory once completed.
The market is adjusting to new supply, with a focus on quality and strategic development.

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