PRINCE GEORGES COUNTY

Industrial Market Snapshot

Second Quarter 2015

Market Overview

PRINCE GEORGES COUNTY INDUSTRIAL

Economic Indicators
Q2 14

Q2 15

DC Metro Employment

3.08M

2.50M

DC Metro Unemployment

4.8%

4.8%

Baltimore Employment

1.35M

1.38M

Baltimore Unemployment

6.3%

6.2%

U.S. Unemployment

6.1%

5.5%

Q2 14

Q2 15

Overall Vacancy

10.1%

9.3%

Net Absorption

-3K

429K

12-Month
Forecast

Market Indicators

Under Construction

715K

1.4M

Average Asking Rent

$6.52

$6.95

12-Month
Forecast

Net Absorption/Asking Rent

4Q TRAILING AVERAGE
300

$8.00
$7.75
$7.50

200

$7.25
$7.00
$6.75

100

$6.50
$6.25

The Prince Georges (PG) County industrial market, with direct

access to both the Baltimore and Washington, DC metropolitan
areas, experienced 428,863 square feet of net positive absorption
in the second quarter of 2015. The market has now totaled almost
590,000 square feet of net positive absorption through the first
half of 2015. The PG County Industrial vacancy rate decreased to
9.34% as a result of this activity. The Capitol Heights Industrial
submarket led the way in the second quarter with 152,792 square
feet of positive absorption. The majority of this absorption can be
attributed to Rexel, which preleased at Hampton Park Boulevard
and finally took occupancy in the second quarter upon delivery of
the building. Both the Fallard and Laurel Industrial submarkets also
experienced sizeable positive absorption totals in the second
quarter.
With its ideal geographical location between Washington, DC and
Baltimore and a vacancy rate below 10%, PG County continues to
attract industrial development. In fact, the industrial construction
pipeline in PG County has doubled from 2014 totals. Almost
390,000 square feet of new industrial product was delivered in
the second quarter of 2015 alone, including the two newest
buildings at the Steeplechase 95 International Business Park. In
addition to the 50,000 square foot building already delivered in
2015 at The Brick Yard, another 239,000 square foot facility is
scheduled to break ground during the summer months. In total,
approximately 1.5 million square feet of new industrial product is
expected to be delivered in PG County during 2015.

$6.00

0
2010

2011

2012

Net Absorption, 000's

2013

2014

2015

Asking Rent, $ PSF

Overall Vacancy
13%
12%
11%

Historical Average = 10.5%

10%
9%
8%
7%
6%
5%
2010

2011

2012

2013

2014

2015

After PG Countys $326 million in industrial capital markets

activity in 2014, the area is off to another hot start in 2015. The
six-building V Street Industrial Park located in the Northeast DC
Industrial submarket began the year with a $115.5 million price tag,
making it one of the most expensive industrial transactions in the
marketplace since prior to the recession. Additionally, Invesco
purchased multiple new construction properties from Atapco in
the Steeplechase 95 International Business Park prior to the
buildings being delivered. The combination of capital markets
activity and new industrial construction demonstrates the future
strength of the Prince Georges County industrial market.

PRINCE GEORGES COUNTY

Industrial Market Snapshot

Second Quarter 2015

TOTAL
BUILDINGS

DIRECT
VACANT

INVENTORY

VACANCY
RATE

CURRENT NET
ABSORPTION

YTD NET
ABSORPTION

UNDER
CONSTRUCTION

AVERAGE
ASKING RENT
(ALL CLASSES)

Submarket
Arena Industrial

19

1,645,108

155,091

9.43%

21,467

8,102

Beltsville

87

4,353,944

463,119

10.64%

-46,956

68,034

$8.29

492,861

0.00%

$8.60

Bowie
Branch Avenue Corridor

$10.14

22

442,105

23,883

5.40%

1,682

1,682

$9.35

1,092,812

43,200

3.95%

$9.21

Capitol Heights

73

3,796,411

353,476

9.31%

152,792

122,134

61,000

$7.01

Cheverly

32

944,854

69,163

7.32%

-11,669

-41,923

$5.43
$10.01

Brandywine/PG South

College Park

27

840,016

57,690

6.87%

-345

9,655

Columbia Park Industrial

48

4,536,509

193,320

4.26%

14,500

92,720

371,250

$7.00

247,919

0.00%

$9.00

10

641,599

219,441

34.20%

108,378

108,378

$4.53

348,842

72,190

20.69%

$9.00

Eastgate Industrial Center

Fallard Industrial
Greenbelt
Industrial Heights

56

1,299,467

86,490

6.66%

20,362

7,974

$6.27

Landover Industrial

73

6,282,602

516,757

8.23%

39,854

54,355

$5.60

Lanham

13

916,357

31,176

3.40%

3,456

19,256

100,000

$8.78

Laurel

37

2,394,810

260,920

10.90%

110,863

110,863

121,000

$6.27

Martin Industrial/Lafayette

24

428,145

65,742

15.36%

276

-9,904

$6.26

Melford Industrial Park

10

320,840

61,566

19.19%

22,440

22,440

$12.00

National Harbor/Oxon Hill/Fort Wash.

162,946

18,325

11.25%

-3,825

-1,175

$9.98

65

2,388,751

367,206

15.37%

-3,421

-31,638

$6.67

Penn/Belt South

59

1,306,564

142,984

10.94%

-6,780

5,198

284,000

$8.35

Temple Hills

34

1,055,066

90,672

8.59%

31,718

31,718

$7.34

469,571

49,820

10.61%

239,000

$7.95

45

3,946,274

417,174

10.57%

-30,029

8,025

220,800

$6.97

Penn/Belt North

The Brick Yard

Trade Zone Industrial
Upper Marlboro
Grand Total

22

814,680

86,195

10.58%

4,100

4,100

$5.72

801

41,169,053

3,845,600

9.34%

428,863

589,994

1,035,081

$6.81

Key Lease Transactions YTD

PROPERTY

TENANT

SUBMARKET

1811 Cabin Branch Drive

89,010

Benjamin Moore

Columbia Park Industrial

1811 Cabin Branch Drive

78,220

PODS

Columbia Park Industrial

8300 Pennsylvania Avenue

66,606

Brooke Furniture Rental

Penn/Belt South

WinNelson

Landover Industrial

Distribution International

Landover Industrial

3333 Pennsy Drive

7100 Old Landover Road

SF

35,115
22,000

Key Sales Transactions YTD

PROPERTY

SF

SELLER/BUYER

PRICE

$115,500,000

SUBMARKET

V Street Industrial Park

820,287

Stanley Martin Industries / Terreno Realty

Steeplechase 95 International Business Park

263,082

Atapco Properties / Invesco

7721 Polk Street - Pennsy Gateway

128,490

Endurance Real Estate Group / Matan Realty

$6,325,000

Landover Industrial

9822 Fallard Court

108,378

Finmarc Management / Chesapeake Lighthouse Foundation

$6,000,000

Fallard Industrial

$31,770,000

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NE DC Industrial
Capitol Heights Industrial

Matthew Myers
Senior Research Analyst
100 Light Street, Suite 1400
Baltimore, MD 21202
Tel: +1 410 347 7808
Fax: +1 410 576 9031
Email: matthew.myers@dtz.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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