The dramatic shift in leasing in Northern Virginia and Maryland was the big news of the week. The District itself reversed course in the third quarter and slipped back into negative absorption, however analysts feel that this is a temporary state. Northern Virginia and Maryland, however, continue to do well as they find their sea legs in this brave new world where the federal government is not continually expanding its space.
By the Numbers
While Washington DC itself maybe be experiencing a return to negative absorption, the suburbs are still doing well per Q3 stats. For the sixth straight quarter, Northern Virginia reported positive growth as 13 of the largest 30 deals signed involved new space, while there was only one tenant looking to downsize, according to JLL. It reports strong interest in spec suites, which are leasing up quickly and motivating owners to build more. It writes:
Tenants continue to migrate to new construction located along the transportation spine Twenty-two of the 30 leases signed over 20,000 square feet this quarter, including the largest tech and creative deals, were in buildings situated along the Silver Line Corridor between Rosslyn and Herndon.
Meanwhile Maryland has the lowest vacancy rates in more than two years with the increase in leasing activity by the private sector decreasing the total vacancy rate to 18.4%. From 2011 through 2015, the government accounted for almost two-thirds of all leases above 50,000 square feet, JLL said — but the trend began shifting this year, with private-sector companies securing 68.6% of all large deals year-to-date. JLL says that:
Of interest is that the majority of positive absorption in the third quarter was located in submarkets that lack Metro access, primarily the I-270 Corridor and Rock Spring submarkets.
News and Notables
WASHINGTON, Commercial Real Estate Women of Washington, DC held its annual awards event last night with more than 400 people in attendance. The award winners and their respective categories were:
Placemaking: StonebridgeCarras and PN Hoffman for the Lot 31 Mixed-Use Development in Bethesda, MD
Dealmaking: Cushman & Wakefield for the American Psychiatric Association Lease Transaction
Best Interiors: Bognet Construction, Cushman & Wakefield and Davis Carter Scott for the American Society for Radiation Oncology Interiors Buildout
Best Marketing Campaign: Cushman & Wakefield for The Wharf Marketing Campaign
Outstanding Impact Award: Wendy Feldman Block, Savills Studley
Corporate Leadership Award: Lynn Bennett, Coakley & Williams Construction
Annual Achievement Award: Melanie Domres of NOVUS Residences
Rising Star Award: Jennifer Niedzwiecki of Capital One Bank
Dealtracker
WASHINGTON, DC–MAC Realty Advisors has arranged a mezzanine loan from a boutique private equity fund for the acquisition and pre-development of 2100 Second St. SW — the former US Coast Guard headquarters at Buzzard Point. This development is being led by a venture between Western Development Corp. and Akridge, and includes Orr Partners, Redbrick LMD, and Jefferson Apartment Group as investors and co-developers. The venture is creating a residential mixed-use development with more than 450 condominium and apartment units, and 80,000 square feet of restaurant and retail space. MAC Executive Director Andrew McAllister said that multiple investors were interested in providing the acquisition financing.
BALTIMORE, MD–Locally-based Chesapeake Real Estate Group and its financial partner USAA Real Estate Co. have signed XPO Logistics to a full-building, 571,000 square foot lease at Perryman Logistics Center, located at 610 Chelsea Rd. Developing the class A industrial building was a speculative bet for Chesapeake Real Estate — but a relatively safe one given that it is located along the 1-95 Corridor, the primary distribution hub of Harford County, Md. Based on comments made by Hartford County Executive Barry Glassman, the facility will be used for e-commerce activity. “This is a significant win for Harford County with the influx of several hundred new e-commerce distribution jobs into our region, and will result in significant economic impact,” is specially what he said. Bill Pellington, Toby Mink and Jon Casella of CBRE represented Chesapeake Real Estate Group in the lease.
GLENARDEN, MD–Less than three weeks after Prince George's County District Council approved the development, Petrie Richardson Ventures and Prudential Global Investment Management broke ground on a five-acre land parcel where the county's first Nordstrom Rack will be. The two companie sare the owner-developers of the 140-acre, 700,000-square-foot mixed-use development Woodmore Towne Centre, which is where the store will be. They acquired the site in July as part of the Centre's second phase of development. Besides the 30,000-square-foot Nordstrom Rack, the site will also include 29,000 square feet of retail and restaurants that will be announced later this year.
COLUMBIA, MD–The Society for Post-Acute and Long-Term Care Medicine has relocated its headquarters to 10500 Little Patuxent Pkwy in Columbia, MD. The medical specialty society will occupy 9,865 square feet on the second floor of the seven-story office building. Cresa's Scott Wingrat and Lauren Rizzo, represented AMDA in the transaction. The landlord, Howard Hughes Corp., was represented in-house by Karen Cherry.
The dramatic shift in leasing in Northern
By the Numbers
While Washington DC itself maybe be experiencing a return to negative absorption, the suburbs are still doing well per Q3 stats. For the sixth straight quarter, Northern
Tenants continue to migrate to new construction located along the transportation spine Twenty-two of the 30 leases signed over 20,000 square feet this quarter, including the largest tech and creative deals, were in buildings situated along the Silver Line Corridor between Rosslyn and Herndon.
Meanwhile Maryland has the lowest vacancy rates in more than two years with the increase in leasing activity by the private sector decreasing the total vacancy rate to 18.4%. From 2011 through 2015, the government accounted for almost two-thirds of all leases above 50,000 square feet, JLL said — but the trend began shifting this year, with private-sector companies securing 68.6% of all large deals year-to-date. JLL says that:
Of interest is that the majority of positive absorption in the third quarter was located in submarkets that lack Metro access, primarily the I-270 Corridor and Rock Spring submarkets.
News and Notables
WASHINGTON, Commercial Real Estate Women of Washington, DC held its annual awards event last night with more than 400 people in attendance. The award winners and their respective categories were:
Placemaking: StonebridgeCarras and PN Hoffman for the Lot 31 Mixed-Use Development in Bethesda, MD
Dealmaking: Cushman & Wakefield for the American Psychiatric Association Lease Transaction
Best Interiors: Bognet Construction, Cushman & Wakefield and Davis Carter Scott for the American Society for Radiation Oncology Interiors Buildout
Best Marketing Campaign: Cushman & Wakefield for The Wharf Marketing Campaign
Outstanding Impact Award: Wendy Feldman Block, Savills Studley
Corporate Leadership Award: Lynn Bennett, Coakley & Williams Construction
Annual Achievement Award: Melanie Domres of NOVUS Residences
Rising Star Award: Jennifer Niedzwiecki of
Dealtracker
WASHINGTON, DC–MAC Realty Advisors has arranged a mezzanine loan from a boutique private equity fund for the acquisition and pre-development of 2100 Second St. SW — the former US Coast Guard headquarters at Buzzard Point. This development is being led by a venture between Western Development Corp. and Akridge, and includes Orr Partners, Redbrick LMD, and Jefferson Apartment Group as investors and co-developers. The venture is creating a residential mixed-use development with more than 450 condominium and apartment units, and 80,000 square feet of restaurant and retail space. MAC Executive Director Andrew McAllister said that multiple investors were interested in providing the acquisition financing.
BALTIMORE, MD–Locally-based Chesapeake Real Estate Group and its financial partner USAA Real Estate Co. have signed
GLENARDEN, MD–Less than three weeks after Prince George's County District Council approved the development, Petrie Richardson Ventures and Prudential Global Investment Management broke ground on a five-acre land parcel where the county's first Nordstrom Rack will be. The two companie sare the owner-developers of the 140-acre, 700,000-square-foot mixed-use development Woodmore Towne Centre, which is where the store will be. They acquired the site in July as part of the Centre's second phase of development. Besides the 30,000-square-foot Nordstrom Rack, the site will also include 29,000 square feet of retail and restaurants that will be announced later this year.
COLUMBIA, MD–The Society for Post-Acute and Long-Term Care Medicine has relocated its headquarters to 10500 Little Patuxent Pkwy in Columbia, MD. The medical specialty society will occupy 9,865 square feet on the second floor of the seven-story office building. Cresa's Scott Wingrat and Lauren Rizzo, represented AMDA in the transaction. The landlord, Howard Hughes Corp., was represented in-house by Karen Cherry.
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