Second Quarter 2013 Commercial Market Review
The Washington, DC office market finished the second quarter with a vacancy rate of 13.9%, which was unchanged from the prior quarter. By comparison, the average vacancy rate for the national office property segment is 11.9% for the second quarter. In Washington, there was 802,806 square feet of positive absorption (newly leased space). However, there was also 969,767 square feet of new inventory delivered to the market (6 buildings) which contributed to the unchanged vacancy rate.
The suburban markets surrounding Washington including Montgomery and Frederick Counties posted higher vacancy rates ranging from 15% to 18%. The aforementioned vacancy rates are an average among all classes of office properties (A, B, & C). The average quoted rental rate reflecting a blend of Class A, B, & C was $34.47 per square foot, which is up by five cents over the prior quarter.
The vacancy rate for the 2nd quarter Washington, DC industrial market was at 10.8%. This was down slightly from the prior quarter. Similar to the office market, the suburban industrial market posted higher vacancy rates than did Washington, DC. For example, Montgomery County posted a vacancy rate of 16.5% and Frederick County was at 18.7%.
Quoted rental rates for bulk distribution warehouse space increased by 2.4% over the first quarter ($7.81 per square foot 1st quarter vs $8 per square foot for the 2nd quarter). Quoted rental rates for the flex space dropped slightly from $12.39 per square foot to $12.33 per square foot.
The vacancy rate for retail properties remained unchanged over the 1st quarter and remains at 4.9%. This reflects an average of vacancy rates amongst both big box centers and traditional neighborhood shopping centers. The average quoted retail rental rate was $23.53 per square foot which is a 1.4% increase over the prior quarter.
(Sources: CoStar and National Association of Realtors)
Residential Market Update
Sellers WANTED! – Residential Market Changes Quickly
As many of you may have heard, Central Maryland has a housing shortage. Demand is high and inventory is extremely low. Since inventory is so low, listing prices have jumped in Frederick and Montgomery Counties on average by $36,512 or 13.3% when comparing the second quarter of 2013 to the same period in 2012. We expect listing prices to continue to climb upward. As expected average sales prices increased by $20,446 in Frederick County for the same time period.
While we expect listing and sale price averages to continue to increase, the market had a bit of a panic when interest rates increased close to 15% recently. Although this impacted the buying power of some buyers, interest rates still remain at historic LOWS, making this market a great time to buy.
So if you are ready to sell or buy and have the ability to react quickly, contact us to discuss our full service residential sales approach. If you would like a list of residential properties we have sold in the last year or if you are interested in selling or buying contact: Brian Duncan at 240-367-6490 or email@example.com.
TD Recent Transactions
David Kaye relocated Angimmune, LLC from their Bethesda location to 1,600 sf at the American Red Cross Holland Laboratory in Rockville. Angimmune, LLC is currently engaged in Clinical Trials for the completion of T-cell lymphoma/leukemia phase I/II. Trials are currently enrolling new participants at MD Anderson Cancer Center, and Yale University School of Medicine. Additional sites are in the process of being added. This Phase I/II clinical trial is designed to treat patients with T-cell lymphomas and leukemia (T-cell blood cancers) such as Cutaneous T-Cell Lymphoma (CTCL). The drug Resimmune™ consists of a toxin, called diphtheria toxin, which is attached to an antibody that can specifically target cancerous T-cells.”
TD represented LCG Technologies, a software development firm that was previously based out of Towson, MD. LCG leased 3000 square feet at 5523 Research Park Drive in Catonsville MD. The property is owned by Merritt Properties.
Tyler-Donegan Real Estate is pleased to announce that it has been engaged by Ruppert Properties, one of the area’s premier commercial real estate owner/developers headquartered in Montgomery County, MD, to exclusively represent the company in the leasing of its Frederick, MD warehouse and office assets including the Stanford Business Park, 200 Monroe Center, and the Cannon Hill Office Building.
Columbia Biosciences Corporation
Tyler – Donegan Real Estate assisted in locating Columbia Biosciences Corporation to the Stanford Industrial Park. Columbia Biosciences will occupy 5,400 square feet of the complex’s 30,000 square feet. Columbia Bioscience agreed to a five-year lease with a single option for one extension.
Columbia Biosciences creates fluorescent detection reagents for recombinant protein research. Applications include Flow Cytometry, Microscopy and High Throughput Screening. To learn more about this company go to www.columbiabiosciences.com.
Hawker, LLC announced that Tyler – Donegan Real Estate would take over as Property Manager for its nearly 30,000 square foot building complex in Stanford Industrial Park. Previously, T-D had worked as the exclusive listing agent locating businesses such as Laurel Medical Supply, Chris’s Classic Restoration and the Damascus Theater Group.