Omr PDF

Q1 2015 | OFFICE USE
BALTIMORE METRO AREA
Office Market Report
Economic Expansion Expected in 2015

MARKET DEFINITION
The Baltimore Regional office market consists of Baltimore City and the surrounding counties
of Anne Arundel, Howard, Baltimore and Harford. The Colliers defined submarkets of
Annapolis, BWI Area, Howard County, Baltimore County West, Baltimore County North,
Baltimore County East and Harford County are all located within this Region. According to
Costar there are currently 377 existing Class A buildings within the Baltimore Metro area with
more than 45,700,000 square feet of space. In the 1st quarter of 2015, approximately
5,500,000 square feet of that space was vacant, or 12.1%.
MARKET OVERVIEW
In total, the Colliers

International | Baltimore
office is currently tracking
180 tenants in the market
seeking more than 3.2
million square feet of
office space.
MARKET INDICATORS
Q4 2014
VACANCY
Q1 2015
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
www.colliers.com/greaterbaltimore
Despite the harsh winter, the Baltimore Metro office market has performed relatively well.
Nationally, the office market outlook is the strongest since the recession with declining
vacancy rates ending 2014 at 13.1%. The U.S. economy added the most jobs in 2014 since
1999, with office and professional services accounting for nearly 30% of those jobs. Most of
the economic growth at the moment is focused on energy markets such as Houston, Oklahoma
City and New Orleans. However, demand for tech and other creative tenants looking for urban
live/work/play environments are showing little sign of slowdown into 2015. Baltimore jobs, in
particular, are growing faster than the labor force causing employers to chase qualified
candidates. According to the latest Moodys report for the Baltimore Metro, while low and high
wage jobs have grown, mid-wage jobs have not. As a result, housing demand has slowed as
the number of distressed properties has stayed the same. That said, employment in the region
is expected to improve, and even outpace the national average by 2016.
Though activity in the market was somewhat slower than expected during the first quarter, the
rest of 2015 is anticipated to make up the momentum. Questions surrounding what would
happen at Port Covington were finally answered when Kevin Plank, CEO of Under Armour,
announced his plans to build the companys headquarters there, as well as a whiskey distillery.
While COPT has steadily been selling land in White Marsh, their recent purchase of 250 W.
Pratt for $63.5 million echoes the increased interest investors have for urban properties.
Although office leasing has picked up in the CBD, much of the occupancy in the past few
months has taken place in the Baltimore/Columbia corridor thanks to government contractors
and Fort Meade. The flight to quality phenomenon continues with both office and industrial
tenants moving towards Class A space. Currently, Colliers International | Baltimore tracks 180
tenants in the market seeking more than 3.2 million square feet of office space.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE METRO AREA
The Baltimore Metro recovery is expected to accelerate this year as

interest rates stay low, and an increased spending in Cybersecurity
will bolster the economy. In fact, tech companies such as Citelighter
and Cyberspa have been expanding, while areas such as Columbia
are being eyed as an extension of the cybersecurity hub network.
Furthermore, potential infrastructure expansion, such as public
transportation, will continue to attract investors and residents.
NET ABSORPTION
Net absorption in the Class A Baltimore Region office market was
positive after a slow end to 2014, while Class B & C went negative
with the addition of several new deliveries. Antiquated properties,
particularly in downtown Baltimore, continue to be eyed for
redevelopment as apartments.
VACANCY
Overall, vacancy rates in the Baltimore Regions office market
improved to 11.7%, better than the national average of 12.8%. Class
A office vacancy dropped to 12.1%, while Class B & C space was
unchanged at 11.5%. Vacancy rates will likely flatten throughout
2015 with several new deliveries in the pipeline; however, demand
is expected to keep up new construction in the long term.
Class A Vacancy Rate
Class A Net Absorption

Thousands
RENTAL RATES
Average rental rates rose slightly to $21.40 psf full service, as did
Class A office rental rates, which improved to $24.00 psf. Class B
& C office rental rates have generally hovered between $19-$20
psf on a full service basis for the past three years.
1,400
18.0%
17.0%
1,200
16.0%
1,000
15.0%
800
14.0%
600
13.0%
400
12.0%
200
11.0%
0
2012
2013
2014
2015
10.0%
2012
2013
2014
2015
Class B & C Asking Rental Rates
Class A Asking Rental Rates

$26.00
$21.00
$25.50
$20.50
$25.00
$20.00
$24.50
$19.50
$24.00
$19.00
$23.50
$18.50
$23.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
$18.00
Q1 2014
Q2 2014
Q3.2014
Q4 2014
Q1 2015
SELECT LEASE SIGNINGS

TENANT
LEASED SF
LeClair Ryan
9,500 sf
180 Admiral Cochrane Drive
Annapolis
Snyder Kearney
11,700 sf
10320 Little Patuxent Parkway
Columbia
University of Maryland Medical Center
26,000 sf
5900 Waterloo Road
Ellicott City
Adelberg Rudow Dorf & Hendler
14,537 sf
7 St. Paul Street
Baltimore
Lakeside Title Company
7,254 sf
5840 Banneker Road
Columbia
NuMotion
18,000 sf
2707-2909 Rolling Road
Woodlawn
Cowan Systems, Inc.
9,995 sf
3700 Koppers Street
Baltimore
Plan B Technologies
9,797 sf
185 Admiral Cochrane Drive
Annapolis
www.colliers.com/marketname
PROPERTY ADDRESS
CITY
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE METRO REPORT
SELECT SALES ACTIVITY
PROPERTY ADDRESS
BUYER
SALE PRICE
SF
PRICE/SF
250 W. Pratt Street
Corporate Office Properties Trust
$63,500,000
368,194 sf
$172.46
300 E. Lombard Street
PWA Real Estate
$38,320,000
237,255 sf
$161.51
6810 Deerpath Road
CSG Partners, LLC
$9,350,000
77,797 sf
$120.18
151 West Street
Moore & Associates, Inc
$9,500,000
35,644 sf
$266.52
11055 Little Patuxent Parkway
Donohoe Real Estate Services
$12,810,000
49,253 sf
$260.09
700 Washington Boulevard
Florida Avenue Joint Venture, LLC
$1,300,000
11,771 sf
$110.44
UPDATE: MARKET COMPARISONS

Net Absorption
New Construction
TOTAL SF
ASKING RATES
VACANT SF
VACANCY %
CURRENT
QUARTER
YTD
CURRENT
COMPLETED
Annapolis
5,738,968 sf
$23.82
996,944 sf
17.4%
-164,957 sf
-164,957
123,170 sf
Baltimore County East
3,641,964 sf
$20.29
498,853 sf
13.7%
-10,224 sf
-10,224
Baltimore County West
13,053,720 sf
$20.05
2,046,829 sf
15.7%
74,244 sf
74,244
192,000 sf
Baltimore County North
15,156,673 sf
$20.50
1,897,602 sf
12.5%
-91,552 sf
-91,552
85,408 sf
BWI
12,845,650 sf
$24.40
1,403,749 sf
10.9%
36,975 sf
36,975 sf
119,880 sf
Downtown Baltimore
13,106,119 sf
$21.50
2,071,971 sf
15.81%
131,563 sf
131,563 sf
Harford County
4,104,659 sf
$23.21
919,921 sf
22.4%
-10,034 sf
-10,034 sf
Howard County
18,605,965 sf
$24.00
1,977,368 sf
10.6%
-12,840 sf
-12,840 sf
159,600 sf
SUBMARKET/COUNTY
QUARTERLY COMPARISON AND TOTALS - BALTIMORE METRO CLASS A

QUARTER
TOTAL RBA
VACANT SF
VACANCY %
CURRENT Q
ABSORPTION
YTD
ABSORPTION
CURRENT
CONSTRUCTION
COMPLETED
DELIVERIES
AVERAGE
RENTAL RATES
Q1 2015
45,778,164 sf
5,541,999 sf
12.1%
397,341 sf
397,341 sf
621,760 sf
$24.05
Q4 2014
45,778,164 sf
5,939,340 sf
13.0%
-204,471 sf
1,286,629 sf
621,760 sf
$23.48
Q3 2014
45,778,164 sf
5,734,869 sf
12.5%
123,224 sf
1,491,100
474,760 sf
272,000 sf
$23.81
Q2 2014
45,506,164 sf
5,586,093 sf
12.3%
277,631 sf
1,367,876 sf
464,000 sf
$23.35
Q1 2014
45,506,164 sf
5,863,724 sf
12.9%
1,090,243 sf
1,090,243 sf
464,000 sf
626,170 sf
$23.63
502 offices
in 67 countries
on 6 continents
United States: 140
Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
$2.3
1.7
billion in annual revenue
billion square feet under management
16,300
professionals and staff
This document/email has been prepared by Colliers International for

advertising and general information only. Colliers International
makes no guarantees, representations or warranties of any kind,
expressed or implied, regarding the information including, but not
limited to, warranties of content, accuracy as to the accuracy of the
information. This publication is the copyrighted property of Colliers
International and/or its licensor(s). 2015. All rights reserved.
RESEARCHER:
Nadia Kahler
Vice President, Research &
Transaction Management | Baltimore
100 North Charles Street, Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
Accelerating success.
DOWNTOWN | BALTIMORE REGION
RESEARCH & FORECAST REPORT
Downtown Baltimore City Office Market Report

MARKET DEFINITION
The Baltimore City office submarket comprises the traditional Central Business District (CBD)
as well as the adjacent areas of Harbor East & Fells Point, Canton, Stadium/West, and South
Baltimore. Within this expanded downtown area there is more than 13,100,000 square feet of
Class A office space. In the 1st quarter of 2015 approximately 2,070,000 square feet of that
space was vacant for a 15.81% vacancy rate.
MARKET OVERVIEW
The Downtown Baltimore Class A office market vacancy rate improved slightly, down from
16.07%, despite paralyzing winter weather for the majority of the first quarter. In the CBD,
Pratt Street continues to enjoy a significantly lower rental rate with only 10.95% of inventory
along the Pratt Street corridor currently vacant. The vacancy rate is also significantly better
for properties in Harbor East, Fells Point and Canton areas, whose overall vacancy rates
ended at 9.91%. For certain office properties in Downtown Baltimore, the reduced vacancy
rate along Pratt Street and the successful marketing of vacant space has led to an increase
in capital events.
MARKET INDICATORS
Q4 2014
Q1 2015
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
100 Light Street and One South Street both came on the market for sale this quarter, as
building owners seek to take advantage of capital markets seeking quality assets with solid
occupancy. In addition, for certain long-suffering owners who have successfully dealt with
depressed rents and high vacancy rates, now is the time to cash out and re-deploy their
assets. 300 E. Lombard Street recently sold for $38,300,000, or $161.50/sf, providing a
successful exit for Irish owners McCann Investments. 250 W. Pratt was purchased by COPT
for $63.5 million as they seek to expand their urban inventory.
Leasing activity is brisk, but probably will not be as brisk as in 2014 when Pandora leased
85,000 SF at 250 W. Pratt and The Maryland Automobile Insurance Fund (MAIF) leased
60,000 SF in Locust Point. These tenants, both new to the Baltimore City office market,
were two very good examples of business moving into Downtown Baltimore.
Thus far, in 2015 significant lease activity in the market includes OrderUp, which moved
their offices to 14,000 sf of space in The Can Company. Adelberg Rudow renewed their
lease at 7 St. Paul Street for 14,500 sf. Vaccinogen moved into 10,000 sf in Fells Point.
From a development perspective, there is much happening and much to look forward to in
the city during 2015. Under Armours Chairman and CEO, Kevin Plank, released his plans to
build a new headquarters at Port Covington, alongside mixed-use retail and residential. UAs
future departure from Tide Point could create an interesting situation in the much sought
after neighborhood of Locust Point, which has statistically carried very little vacancy.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE DOWNTOWN
Questions continue to surround State Center and whether Governor Hogans

administration will move forward or scrap the plans altogether. The new 400,000 SF
headquarters for Exelon Constellation is under construction in Harbor Point. Wexford
Science & Technology looks forward to breaking ground in the UMB BioPark on the citys
West Side for a 250,000 SF of BioTech lab. Other development includes the Cordish
Companies plans to add 100,000 sf of office space at the Power Plant, and Cross Street
Partners recently announced that their plans to redevelop 2101 E. Biddle Street.
UPDATE
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
$2.3
Net Absorption
Thousands
502 offices in
67 countries on
6 continents
billion square feet under

management
1.70
250
Over
16,300 professionals
200
150
100
50
0
2012
2013
2014
2015
Class A Vacancy Rates

22.0%
21.0%
20.0%
19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
CBD
Pratt Street
RESEARCHER:
Nadia Kahler
100 North Charles Street
Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
Harbor East/Locust
Point/Canton
Q1 2014
Q2 2014
Q3 2014
Q4 2014
This document/email has been prepared by Colliers

International for advertising and general information
only. Colliers International makes no guarantees,
representations or warranties of any kind, expressed
or implied, regarding the information including, but not
limited to, warranties of content, accuracy as to the
accuracy of the information. This publication is the
copyrighted property of Colliers International and/or
its licensor(s). 2015. All rights reserved.
Q1 2015
Asking Rental Rates

$25.00
$24.00
$23.00
$22.00
$21.00
$20.00
$19.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
ANNAPOLIS | BALTIMORE REGION
Annapolis Market Report

MARKET DEFINITION
The Annapolis submarket is located approximately 25 miles south of Baltimore City
and 30 miles east of Washington, D.C. The City of Annapolis serves as the Capital
of the State of Maryland, the county seat of Anne Arundel County, and is also the
home of the United States Naval Academy. The local office market consists of 162
properties and more than 5,700,000 square feet of space. In the 1st quarter of
2015, approximately 1,000,000 square feet of this space was vacant.
MARKET OVERVIEW
New deliveries at Annapolis Commons, and negative absorption in the Annapolis
office market during the 1st quarter, resulted in vacancy rates rising from 14.8% to
MARKET INDICATORS
17.5%. Multistory buildings vacancy rates also increased to 14%, as did single story
Q4 2014
Q1 2015
vacancy, average asking rental rates are on the rise with Class A office averaging
VACANCY
$27.00 psf on a full service basis, and Class B remained steady at $20.75 psf.
NET ABSORPTION
The Annapolis office market, like most of the region, was relatively quiet during the
CONSTRUCTION
RENTAL RATE
buildings rising to 34.4%, the highest vacancy rates in several years. Despite rising
1st quarter regarding leasing and sales activity. Plan B Technology signed a 9,700 sf
lease at 185 Admiral Cochrane Drive. Hartman & Egeli and Homebridge Financial
renewed their leases at 116 Defense Highway. St. John Properties delivered three
new buildings on Harry S. Truman Parkway, which they expect to lease quickly.
1000 Bestgate has reportedly received 9 offers for purchase and is going under
contract. Other activity includes 180 & 190 Admiral Cochrane Drive, which is
currently under contract. 151 West Street was purchased by Moore & Associates
for $9,500,000, or $266.52/sf.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE REGION - ANNAPOLIS
UPDATE
502 offices in
67 countries on
6 continents
Thousands
Net Absorption
100
50
0
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
-50
-100
-150
$2.3
-200
2012
2013
2014

management
1.70
2015
Over
Vacancy Rate
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2011
2012
2013
2014
2015
RESEARCHER:
Nadia Kahler
Suite 1710
Baltimore, MD 21201
Multistory Asking Rental Rates

$26.00
$25.50
$25.00
TEL +1 443 543 1222

FAX +1 443 543 0191
$24.50
$24.00

$23.50
$23.00
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Single Story Asking Rental Rates

$30.00
$28.00
$26.00
$24.00
Office (FS)
$22.00
Flex (NNN)
$20.00
$18.00
$16.00
$14.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
BALTIMORE COUNTY EAST | BALTIMORE REGION
Baltimore County East Market Report

MARKET DEFINITION
The Baltimore County East submarket includes Baltimore County suburban areas
located east of Baltimore City. The submarket is defined by the I-95 corridor as
well as I-695 and includes the local markets of White Marsh, Perry Hall, Dundalk
and Essex. The area encompasses one of the smaller regional office use
submarkets with 110 buildings and just over 3,600,000 square feet of space. In the
1st quarter of 2015, approximately 475,000 square feet of that space was vacant.
MARKET OVERVIEW
Vacancy rates in the Baltimore County East office market rose slightly to 13.7%,
MARKET INDICATORS
though still lower than most of 2014. Multistory buildings vacancy rose to 13.2%,
Q4 2014
Q1 2015
while single story buildings stayed about the same at 18%. Overall rental rates for
office space range from $22.50-$25.50 on a full service basis, with the limited
VACANCY
number of Class A buildings in the submarket fetching mid-high $20s full service,
and Class B space averaging $19-$20 full service.
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
Activity in the East picked up towards the end of 2014 as Baltimore Crossroads had
over 100,000 sf of leases signed. In fact, demand has increased so much that St.
John Properties is building a 90,000 sf speculative building at Crossroads.
Additionally, Katzen Eye Group signed a 10,000 sf lease at 7106 Ridge Road. As
for sales, COPT continues to sell non-strategic land, particularly in White Marsh
where they recently sold 56 acres.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE COUNTY EAST
UPDATE
502 offices in
67 countries on
6 continents
Thousands
Net Absorption
160
140
120
100
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
80
60
40
20
$2.3

management
1.70
-20
2012
2013
2014
2015
Over
Vacancy Rate
23.0%
22.0%
21.0%
20.0%
19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
2011
2012
2013
2014
2015

$21.00
$20.50
$20.00
RESEARCHER:
Nadia Kahler
Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
$19.50
$19.00
$18.50
$18.00
$17.50
$17.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015

$21.00
$20.00
$19.00
$18.00
$17.00
$16.00
Office (FS)
$15.00
Flex (NNN)
$14.00
$13.00
$12.00
$11.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
BALTIMORE COUNTY NORTH | BALTIMORE REGION
Baltimore County North Market Report

MARKET DEFINITION
The Baltimore County North submarket is located in the northern areas of
Baltimore County and borders the northern end of Baltimore City. The submarket
incorporates major thoroughfares including the I-83 corridor as well as I-695. In
addition to the local submarkets of Towson and Timonium, the area also includes
Hunt Valley, Cockeysville and Sparks. The overall Baltimore County North market
contains 275 properties and just over 15,100,000 square feet of space. In the 1st
quarter of 2015, over 1,900,000 square feet of that space was vacant.
MARKET OVERVIEW
MARKET INDICATORS
Q4 2014
Q1 2015
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
Office vacancy rates for the northern part of Baltimore County rose slightly in the
first quarter of 2015 to 12.6%, as was the case for most of the metropolitan area
which was plagued by frigid and snowy conditions. That said, overall asking rental
rates remained steady at $20.50 psf on a full service basis. Class A rental rates
remained around $22.00 psf, while Class B rental rates rose slightly to $19.80 psf.
Single story buildings vacancy rates dipped to 11.5%, down significantly from the
end of 2013. Multistory buildings vacancy rates, on the other hand, rose to 12.8%
after steadily declining throughout 2014.
Baltimore County North has seen an increase in activity in the past few months,
although the 1st quarter was slower than expected due to weather related delays.
Lease transactions included Everseat, Inc. which took 6,100 sf at 3000 Falls Road,
while Data Networks signed an 8,000 sf lease at 216 Schilling Circle.
Additionally, Katz Abosch renewed their 23,000 sf lease at 9690 Deereco Road, as
did Carsons Scholars for 4,000 sf at 305 W. Chesapeake Street. Construction
projects seem to be popping up throughout the region, particularly in Towson
where plans for Towson Row are solidifying.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE COUNTY NORTH
UPDATE
502 offices in
67 countries on
6 continents
Thousands
Net Absorption
250
200
150
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
100
50
0
-50
-100
$2.3
-150

management
1.70
-200
2012
2013
2014
2015
Over
Vacancy Rate
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
2012
2013
2014
2015

$25.00
$23.00
$21.00
RESEARCHER:
Nadia Kahler
Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
$19.00
$17.00
Office (FS)
$15.00
Flex (NNN)
$13.00
$11.00
$9.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015

$21.00
$20.80
$20.60
$20.40
$20.20
$20.00
$19.80
$19.60
$19.40
$19.20
$19.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
BALTIMORE COUNTY WEST | BALTIMORE REGION
Baltimore County West Market Report

MARKET DEFINITION
The Baltimore County West submarket is located in suburban areas of Baltimore
County bordering the western and northwestern portions of Baltimore City. The
submarket is defined by I-695 and Reisterstown Road corridors. It includes the local
markets of Owings Mills, Pikesville, Woodlawn, Catonsville and Arbutus and consists
of 296 buildings and more than 13,000,000 square feet. In the 1st quarter of 2015,
approximately 2,000,000 square feet of that space was vacant.
MARKET OVERVIEW
Overall office vacancy rates in Baltimore County West declined in the first quarter to
MARKET INDICATORS
Q4 2014
Q1 2015
15.7%. Single story buildings vacancy dropped to 15.3%, while multistory building
vacancy was relatively unchanged at 16.3%. Average rental rates for the submarket were
relatively unchanged at $19.67 psf, full service. In the past 24 months, average Class A
VACANCY
office asking rental rates have not changed significantly, hovering between $20-$24 psf
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
full service. Class B rental rates also remained steady between $18-$19 psf.
The west side of Baltimore County seemed unaffected by the harsh winter with a
flurry of activity taking place throughout the submarket. Lease activity included Taylor
Learning Center which signed a 7,000 sf lease at 130 Reisterstown Business Center,
and NuMotion signing an 18,000 sf lease at Rolling Road Commerce Center. Cowan
Systems signed a 10,000 sf at 3700 Koppers St, while Meadowridge Education Center
renewed their 14,000 sf lease at 1849 Gwynn Oak Ave. BECO Towers II shows no
signs of leasing slow down with the signing of Insurance, Inc to 10,921 sf.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE COUNTY WEST
UPDATE
502 offices in
67 countries on
6 continents
Thousands
Net Absorption
200
180
160
140
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
120
100
80
60
40
$2.3
20

management
1.70
0
2012
2013
2014
2015
Over
Vacancy Rate
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
2011
2012
2013
2014
2015

$21.00
$20.50
RESEARCHER:
Nadia Kahler
Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
$20.00
$19.50
$19.00
$18.50
$18.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015

$20.00
$19.00
$18.00
$17.00
$16.00
$15.00
Office (FS)
$14.00
Flex (NNN)
$13.00
$12.00
$11.00
$10.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
BWI AREA | BALTIMORE REGION
BWI Area Market Report

MARKET DEFINITION
The BWI Area submarket is located around the Baltimore/Washington Thurgood
Marshall International Airport in northern Anne Arundel County. The submarket
includes Fort George Meade, NSA headquarters, Linthicum, Hanover, Glen Burnie,
Elkridge and small portions of Howard County bordering BWI Airport to the west.
This market consists of 197 existing properties and more than 12,800,000 square
feet of space. In the 1st quarter of 2015, approximately 1,340,000 square feet of this
space was vacant.
MARKET OVERVIEW
Overall vacancy rates in the BWI office market dropped in the first quarter to 10.9%,
MARKET INDICATORS
Q4 2014
Q1 2015
the lowest they have been in three years. Multistory vacancy rates continued to
improve to 10.8%, while single story vacancy rates rose slightly to 11.1%. Overall
office asking rental rates hovered around $24.50 psf on a full service basis, which
VACANCY
has fluctuated only a dollar or less over the past three years. Class A office average
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
asking rental rates rose to $28.50 psf, while Class B office space evened out at
$21.75 psf, both full service.
Overall, leasing activity was relatively slow in this submarket throughout the 1st
quarter, in no small part due to the unusually harsh winter. On the other hand, there
were a few notable sales: 999 Corporate Boulevard sold for $6,525,000 at auction,
or $96.83/sf and 857 Elkridge Landing Road sold for $3,000,000, or $32.64/sf.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE REGION - BWI AREA
UPDATE
502 offices in
67 countries on
6 continents
Thousands
Net Absorption
300
250
200
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
150
100
50
$2.3

management
1.70
0
2012
2013
2014
2015
Over
Vacancy Rate
20.0%
19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
2011
2012
2013
2014
2015

$27.00
$26.50
RESEARCHER:
Nadia Kahler
Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
$26.00
$25.50
$25.00
$24.50
$24.00
Q1 2014
Q2 2014
Q3 2014
Q4 2015
Q1 2015

$22.00
$20.00
$18.00
Office (FS)
$16.00
Flex (NNN)
$14.00
$12.00
$10.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
HARFORD COUNTY | BALTIMORE REGION
Harford County Market Report

MARKET DEFINITION
The Harford County submarket is located approximately 25 miles northeast of
Baltimore City and is defined by the I-95 and Route 1 Corridors. The area includes
the local markets of Bel Air, Aberdeen and Havre de Grace. The Aberdeen Proving
Ground is also located in Harford County. This market consists of 131 properties
and just over 4,100,000 square feet of existing space. In the 1st quarter of 2015,
about 915,000 square feet of that space was vacant.
MARKET OVERVIEW
Office vacancy rates in the Harford County submarket have been consistently high
over the past four years, and are seemingly evening out ending the first quarter at
MARKET INDICATORS
Q4 2014
Q1 2015
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
22.3%. Overall average rental rates fluctuated between $22-$23 psf on a full
service basis. Class A rental rates remained at $27.50 full sevice where it has been
for the past 24 months. Class B space, which stabilized around $21.00 psf full
service, also mostly unchanged over the past two years. Single story buildings
average vacancy rates fell to 19.7% after spiking at the end of 2014, while
multistory buildings vacancy rates rose to 24.4%.
Although the Harford County market has statistically been plagued by over
development and higher than average vacancy rates, there was some activity
during the 1st quarter of 2015. State Farm took 3,000 sf at 2107 Laurel Bush Road,
while L2, Inc took 3,500 sf at 2108 Emmorton Park Road. AASKI expanded at 1104
S. Philadelphia Boulevard to 13,000 sf, and Safenet took 12,000 sf at 3465 Box Hill
Corporate Center.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE REGION - HARFORD COUNTY
UPDATE
502 offices in
67 countries on
6 continents
Thousands
Net Absorption
120
100
80
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
60
40
20
0
$2.3
-20
2012
2013
2014

management
1.70
2015
Over
Vacancy Rate
27.0%
25.0%
23.0%
21.0%
19.0%
17.0%
15.0%
13.0%
11.0%
9.0%
7.0%
2011
2012
2013
2014
2015

$27.00
$26.50
$26.00
$25.50
RESEARCHER:
Nadia Kahler
Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
$25.00
$24.50
$24.00
$23.50
$23.00
$22.50
$22.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015

$21.00
$19.00
$17.00
Office (FS)
$15.00
Flex (NNN)
$13.00
$11.00
$9.00
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
HOWARD COUNTY | BALTIMORE REGION
Howard County Market Report

MARKET DEFINITION
The Howard County submarket is located between Baltimore, MD and Washington,
D.C. along the I-95 corridor. The submarket is comprised of 387 buildings and about
18,600,000 square feet of space. In the 1st quarter of 2015, approximately 2,000,000
square feet of that space was vacant. The submarket boasts a sturdy Landlord pool
with REITs and local developers such as Corporate Office Properties Trust, First
Potomac Management, LLC, General Growth Properties, Greenfield Partners, Abrams
Development and Merritt.
MARKET OVERVIEW
MARKET INDICATORS
Q4 2014
Q1 2015
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
Overall vacancy rates dropped to 10.6%, about where it was at the end of 2014. Single
story office building vacancy rates rose slightly to 11.3%, while multistory office
buildings continued to decline as it has over the past two years ending at 10.3%. Overall
rental rate averages remained at $24.00 psf full service, and has been relatively stable
for the past two years. Average Class A office rates were also unchanged at $24.75 psf
full service, as Class B office rental rates declined slightly to $22.45 psf.
Lease transactions include Snyder Kearney, which signed an 11,700 sf lease at 10320
Little Patuxent Parkway. The University of Maryland signed a 26,000 sf lease at
Waterloo Crossing, which is now 100% leased. Pure Technology signed a 15,000 sf
lease at 8920 Route 108, while Lakeside Title Company renewed their 7,254 sf lease
at 5840 Banneker Road.
Additionally, Astrum Solar signed a 42,852 sf lease at 7101 Riverwood Drive,
consolidating their Howard County operations. The Columbia Association reportedly
signed a 32,000 sf lease at 6310 Hillside Court that it plans to occupy in late August.
Demand in Howard County for office space is so great that St. John Properties is
constructing a new 120,000 sf speculative office building in Maple Lawn. As for sales,
Greenfield Partners sold 9125 Guilford Road for $8,150,000, while 11055 Little
Patuxent Parkway sold for $12,810,000.
RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE REGION - HOWARD COUNTY
UPDATE
502 offices in
67 countries on
6 continents
Thousands
Net Absorption
300
250
200
United States: 140

Canada: 31
Latin America: 24
Asia Pacific: 199
EMEA: 108
150
100
50
0
$2.3
-50
2010
2011
2012
2013

management
1.70
2014
Over
Vacancy Rate
27.0%
25.0%
23.0%
21.0%
19.0%
17.0%
15.0%
13.0%
11.0%
9.0%
7.0%
2010
2011
2012
2013
2014

$28.00
$27.00
RESEARCHER:
Nadia Kahler
Suite 1710
Baltimore, MD 21201
TEL +1 443 543 1222
FAX +1 443 543 0191
$26.00
$25.00
$24.00
$23.00
$22.00
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014

$25.00
$20.00
$15.00
Office (FS)
$10.00
Flex (NNN)
$5.00
$0.00
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014

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Q1 2015 | OFFICE USE

BALTIMORE METRO AREA

Office Market Report

Economic Expansion Expected in 2015

In total, the Colliers

The Baltimore Metro recovery is expected to accelerate this year as

Class A Vacancy Rate

Class A Net Absorption

Class B & C Asking Rental Rates

Class A Asking Rental Rates

SELECT LEASE SIGNINGS

180 Admiral Cochrane Drive

10320 Little Patuxent Parkway

University of Maryland Medical Center

5900 Waterloo Road

Adelberg Rudow Dorf & Hendler

7 St. Paul Street

Lakeside Title Company

5840 Banneker Road

2707-2909 Rolling Road

Cowan Systems, Inc.

3700 Koppers Street

185 Admiral Cochrane Drive

250 W. Pratt Street

Corporate Office Properties Trust

300 E. Lombard Street

PWA Real Estate

6810 Deerpath Road

CSG Partners, LLC

151 West Street

Moore & Associates, Inc

11055 Little Patuxent Parkway

Donohoe Real Estate Services

700 Washington Boulevard

Florida Avenue Joint Venture, LLC

UPDATE: MARKET COMPARISONS

Baltimore County East

Baltimore County West

Baltimore County North

QUARTERLY COMPARISON AND TOTALS - BALTIMORE METRO CLASS A

billion in annual revenue

billion square feet under management

professionals and staff

This document/email has been prepared by Colliers International for

Q1 2015 | OFFICE USE

DOWNTOWN | BALTIMORE REGION

RESEARCH & FORECAST REPORT

Downtown Baltimore City Office Market Report

RESEARCH & FORECAST REPORT | Q1 2015 | OFFICE USE | BALTIMORE DOWNTOWN

Questions continue to surround State Center and whether Governor Hogans

United States: 140

billion in annual revenue

billion square feet under

Class A Vacancy Rates

This document/email has been prepared by Colliers

Asking Rental Rates

Q1 2015 | OFFICE USE

ANNAPOLIS | BALTIMORE REGION

RESEARCH & FORECAST REPORT

Annapolis Market Report

United States: 140

billion in annual revenue