D C O F FIC E 202.775.7000 VIE N NA OFFICE 703.821.

0040
B E THE S D A O FFIC E 301.571.0900 C O L U MB I A OFFICE 301.621.8800

July 2011

Office Space

Baltimore Metro Area

All Office Buildings

Buildings Built 1985 - Present

Total
Rentable SF 1

SF Available
Immediately 2

Direct
Vacancy
Rate

Baltimore County West

Baltimore County North
Baltimore County East
Baltimore CBD

10,611,476
15,028,812
2,205,631
17,891,713

1,029,313
1,803,457
326,433
2,522,732

9.7%
12.0%
14.8%
14.1%

9.8%
12.4%
16.2%
15.1%

5,248,810
5,958,921
539,943
8,604,903

Balance of Baltimore City

15,070,003

2,139,940

14.2%

14.4%

4,798,099

830,071

17.3%

(15,000)

15,000

13,292,258
1,145,773
10,810,129
5,823,039
2,944,257
94,823,091

1,701,409
299,047
1,708,000
582,304
488,747
12,601,383

12.8%
26.1%
15.8%
10.0%
16.6%
13.3%

13.0%
26.1%
16.1%
10.3%
17.0%
13.7%

7,599,101
542,178
6,754,687
1,847,418
1,202,645
43,096,705

1,018,280
87,833
763,280
199,521
357,186
5,592,510

13.4%
16.2%
11.3%
10.8%
29.7%
13.0%

178,779
235,000
372,700
1,021,979

66,000
(13,000)
(22,000)
6,000
59,000
163,000

39,000
42,000
(32,000)
58,000
107,000
142,000

Submarkets

Columbia4
Route 1 North
BWI
Anne Arundel South
Harford County5
TOTAL - Baltimore Metro
1

Vac. Rate
w/ Sublet
Space

Total
Rentable SF 3

SF Available
Immediately 2

Direct
Vacancy
Rate

SF Under
Construction or
Renovation

Q2 2011
Net Absorption
(SF)

First Half 2011

Net Absorption
(SF)

503,886
601,851
25,917
1,204,686

9.6%
10.1%
4.8%
14.0%

40,000
195,500
-

(31,000)
15,000
9,000
89,000

54,000
(195,000)
18,000
36,000

Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.

Does not include sublet space.

Includes buildings 50,000 SF RBA and greater built 1985-present, except for Baltimore CBD, which includes those buildings that are defined as Class A by CoStar and are 50,000 SF or greater.
4
9055 Sterling Drive delivered.
5
6180 Guardian Gateway Drive and 4696 Millenium Drive delivered.
3

Suburban Maryland
All Office Buildings

Buildings Built 1985 - Present

Total
Rentable SF 1

SF Available
Immediately 2

Direct
Vacancy
Rate

Bethesda/Chevy Chase
North Bethesda
Rockville

11,293,448
10,326,658
8,588,860

892,182
1,259,852
1,073,608

7.9%
12.2%
12.5%

9.4%
12.7%
12.6%

5,174,211
4,424,299
3,434,177

294,930
778,677
508,258

5.7%
17.6%
14.8%

358,440
-

11,000
103,000

(11,000)
(124,000)
86,000

North Rockville
Gaithersburg
Germantown
Kensington/Wheaton
Silver Spring
N. Silver Spring/Rt. 29

11,820,950
5,281,815
2,455,685
1,406,234
6,903,910
2,980,145
61,057,705

1,501,261
718,327
304,505
336,090
766,334
175,829
7,027,987

12.7%
13.6%
12.4%
23.9%
11.1%
5.9%
11.5%

14.3%
14.6%
13.6%
24.7%
11.8%
6.9%
12.5%

8,220,338
1,489,124
1,682,920
65,000
3,588,215
1,590,620
29,668,904

1,027,542
229,325
233,926
330,116
17,497
3,420,271

12.5%
15.4%
13.9%
0.0%
9.2%
1.1%
11.5%

575,000
194,400
1,127,840

106,000
(26,000)
(27,000)
(202,000)
(55,000)
(27,000)
(117,000)

71,000
(37,000)
49,000
(217,000)
(7,000)
(33,000)
(223,000)

TOTAL - Prince George's Co.

Frederick County

5,304,784
2,509,823
3,016,041
4,951,020
5,832,217
21,613,885
5,952,641

907,118
328,787
750,994
1,010,008
898,161
3,895,069
803,607

17.1%
13.1%
24.9%
20.4%
15.4%
18.0%
13.5%

17.1%
13.6%
25.1%
21.4%
16.0%
18.5%
13.7%

2,195,946
1,471,426
1,412,715
2,137,730
1,858,682
9,076,499
3,601,814

355,743
138,314
447,831
521,606
392,182
1,855,676
479,041

16.2%
9.4%
31.7%
24.4%
21.1%
20.4%
13.3%

268,762
268,762
-

5,000
(5,000)
(54,000)
(10,000)
(29,000)
(93,000)
65,000

5,000
(10,000)
(60,000)
(45,000)
(12,000)
(122,000)
71,000

TOTAL - Suburban Maryland

88,624,231

11,726,662

13.2%

14.0%

42,347,217

5,754,988

13.6%

1,396,602

(145,000)

(274,000)

Montg. Co. Submarkets

TOTAL - Montgomery Co.

Vac. Rate
w/ Sublet
Space

Total
Rentable SF 3

SF Available
Immediately 2

Direct
Vacancy
Rate

SF Under
Construction or
Renovation

Q2 2011
Net Absorption
(SF)

First Half 2011

Net Absorption
(SF)

Prince George's Co. Submarkets

Beltsville/Calverton/Coll. Pk.
Laurel
Greenbelt
Lanham/Landover/Largo
Bowie/Marlboro/South P.G.

Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.
2
Does not include sublet space.
3
Includes buildings 50,000 SF RBA and greater.

SOU RC E: D ELTA AS S O C I AT E S, R E S E A R C H A F F I L I AT E O F TR A NS WE S TE R N, BA S E D O N ITS P R O PR IE TA RY A NA LY S IS O F CO S TAR DATA.

D C O F FIC E 202.775.7000 VIE N NA OFFICE 703.821.0040

B E THE S D A O FFIC E 301.571.0900 C O L U MB I A OFFICE 301.621.8800

July 2011

Submarket

Submarket
Harford County
Baltimore County East
Baltimore County North
Baltimore County West
Columbia
Route 1 North
BWI
Anne Arundel South
Baltimore City
TOTAL

Direct Avail. Space 2

Direct Vacancy Rate

Available Sublease Space

Vacancy Rate w/ Sublease Space

21,308,480
24,607,235
7,884,578
18,825,640
13,579,814
27,964,042
25,316,122
4,055,139
54,468,293
198,009,343

1,278,509
2,436,116
339,037
1,487,226
2,267,829
3,104,009
3,037,935
202,757
3,812,781
17,966,197

6.0%
9.9%
4.3%
7.9%
16.7%
11.1%
12.0%
5.0%
7.0%
9.1%

277,010
49,214
7,885
56,477
27,160
111,856
50,632
4,055
217,873
802,163

7.3%
10.1%
4.4%
8.2%
16.9%
11.5%
12.2%
5.1%
7.4%
9.5%

Q2 2011
Net Absorption (SF)

First Half 2011

Net Absorption (SF)

639,000
74,000
31,000
94,000
14,000
280,000
152,000
(8,000)
34,000
1,310,000

298,000
(123,000)
63,000
56,000
68,000
56,000
(253,000)
4,000
34,000
203,000

Space Under Construction

Space Under Renovation

30,000
211,600
241,600

Suburban Maryland

Submarket
Prince George's County
Montgomery County
Frederick County
TOTAL

Submarket
Prince George's County
Montgomery County
Frederick County
TOTAL

Total Inventory 1

Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.
Does not include sublet space.

Flex/Industrial Space

Baltimore Metro Area

Harford County
Baltimore County East
Baltimore County North
Baltimore County West
Columbia
Route 1 North
BWI
Anne Arundel South
Baltimore City
TOTAL

Total Inventory 1

Direct Avail. Space 2

Direct Vacancy Rate

Available Sublease Space

Vacancy Rate w/ Sublease Space

57,290,376
26,791,812

6,130,070
2,304,096

10.7%
8.6%

401,033
214,334

11.4%
9.4%

15,596,199

2,323,834

14.9%

265,135

16.6%

99,678,387

10,758,000

10.8%

880,503

11.7%

Q2 2011
Net Absorption (SF)

First Half 2011

Net Absorption (SF)

Space Under Construction

Space Under Renovation

(229,000)
(108,000)

79,000
(54,000)

142,346
-

(59,000)
(396,000)

(199,000)
(174,000)

370,000
512,346

Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.
Does not include sublet space.

SOU RC E: DELTA A S S O C I AT E S , R E S E A R C H A F F I L I ATE O F T R A NS WE S TE R N, BA S E D O N ITS P R O PR IE TA RY A NA LY S IS O F CO S TAR DATA.

D C O F FIC E 202.775.7000 VIE N NA OFFICE 703.821.0040

B E THE S D A O FFIC E 301.571.0900 C O L U MB I A OFFICE 301.621.8800

July 2011

Market Activity

Baltimore Metro Area: Office

LEASES
Tenant

Address

Morgan Stanley Smith Barney (Renewal)

2330 W. Joppa Road

Total Gross Leasing Activity Estimate - Through July 2011 (including renewals):

Square Feet
20,000
2,650,000

INVESTMENT SALES
No notable sales.

Baltimore Metro Area: Flex/Industrial

LEASES
Tenant

Address

IQ Solutions (Renewal)
Oceaneering, Inc.

350 Winmeyer Avenue

6090 Dorsey Road

Total Gross Leasing Activity Estimate - Through July 2011 (including renewals):

Square Feet
79,000
68,000
3,850,000

INVESTMENT SALES
Terreno Realty Corporation purchased 8730 Bollman Place for $7.5 million ($76/SF).

Suburban Maryland: Flex/Industrial and Office

LEASES
Tenant

Address

NIAID (Pre-lease)
JDA Software Group, Inc
Kirlin

5601 Fishers Lane (Office)

9713 Key West Avenue (Office)
75-79 Derwood Circle (Warehouse)

Total Gross Leasing Activity Estimate - Through July 2011 (including renewals):

Square Feet
491,000
26,000
21,000
4,600,000

INVESTMENT SALES
Cole Real Estate Investments purchased 3275 Bennett Creek Avenue (Office) for $38.2 million ($329/SF).

SOU RC E: DELTA A S S O C I AT E S , R E S E A R C H A F F I L I ATE O F T R A NS WE S TE R N, BA S E D O N ITS P R O PR IE TA RY A NA LY S IS O F CO S TAR DATA.