No Tenants, No Problem: Greater Baltimore’s Next Spec Industrial Project
- Aug 06, 2015
The strong demand for industrial space in Greater Baltimore is bringing more and more developers to the area. Recently, it has come to light that Ridgeline Property Group, an Atlanta-based privately held development and investment company, plans to build a speculative project near the Baltimore/Washington International Thurgood Marshall Airport.
Ridgeline plans to start work on the Hanover Business Center in the second quarter of 2016. According to the developer’s website, the new building will have 100,000 square feet of space and will feature 28’ clear heights, a 120’ truck court and 1.4 parking spaces per 1,000 square feet. It will be developed on a 7.8-acre site, at 1520 Stoney Run Rd., in Hanover. Ridgeline did not disclose how much it intends to invest in the project. The new Hanover Business Center is scheduled for completion in the first quarter of 2017.
The Baltimore Business Journal reported that Ridgeline will develop the project with the help of Cabot Properties Inc., its capital partner. Apart from the Hannover Business Center, the Ridgeline/Cabot partnership is also working on a 423,300-square-foot distribution facility in York, Pa. This project is expected to be completed in December.
In a report, DTZ revealed that the 165 million-square-foot Baltimore Metro industrial market saw more than 400,000 square feet of positive net absorption in the second quarter of 2015. Due to several deliveries, the region’s vacancy rate increased slightly to 10.48 percent since the end of Q1. Meanwhile, rental rates have also increased in the areas that have experienced the bulk of recent leasing activity. As a result of the consistent demand for space, Harford County, Baltimore County East and the Corridor are currently experiencing rate increases, and their location along I-95 could lead them to see even more rent growth in the following years.
Rendering via Ridgeline Property Group