(Read more on the industrial market.)
HANOVER, MD-Liberty Property Trust is getting set to deliver the first of two planned buildings at its new Highpoint 100 business park here. The first building, a 99,600-sf flex facility that offers a greater percentage of office space than a traditional warehouse facility, broke ground with a 50,000-prelease deal inked by Dynamic Designs Enterprise. Development costs were $99 per sf, or $9.8 million, including office build-out allowances for tenants.
Located at 7351 Coca Cola Dr., the single-story flex building has a 30% office finish. Situated on 19 acres, the two buildings are also close to Interstate 95, Route 100, Route 295 and the airport.
The higher-than-average office finish, though, is what attracted the tenant, Dynamic Designs Enterprise, says Lisa Sullivan, VP and city manager for Liberty. "Traditional warehouse users have anywhere from 5% to 10% of office space available," she tells GlobeSt.com. "We are looking for tenants that want 20% to 40%." Dynamic Design, a fashion merchandiser, needed the high end office finish for its clients but also the warehouse space in the back for its showrooms, she says.
Asking rates for this property are $6.75 per sf for the shell or pure warehouse and $8.50 per sf for the 20% office finish, Sullivan says.
The second building in Highpoint will be similar in design, although not likely in development costs. Liberty is currently in talks with a large prospect to prelease the entire building B, a 136,500-sf structure. The company is now calculating the design costs for the potential build-to-suit facility, she says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
