The massive Perryman Logistics Center in Aberdeen is on track to be delivered in December.
In October 2014, Chesapeake Real Estate Group announced that it and financial partner USAA Real Estate Co. had purchased nearly 50 acres of land, and would be building the 571,000 square-foot speculative warehouse and distribution space. Now the building itself has been erected; the painting of exterior walls and truck courts, parking areas and landscaping are underway.
The building, which includes 36-foot clear ceiling heights, 120 loading docks and a 130-foot truck court, was built on speculation because of the demand for warehouse and distribution space along the Interstate 95 corridor. That demand is being driven in large part by e-commerce firms’ need to quickly move product in the area.
“Interest in Perryman Logistics Center among end-users is very encouraging, as a number of sectors continue to specify the greater Baltimore metropolitan region for e-commerce and other large-scale traditional distribution and warehouse requirements,” Matt Laraway, SIOR, partner at Chesapeake Real Estate Group said in a news release. “The project is designed to accommodate a variety of uses, including logistics operations, and if necessary, can be divided to accommodate multiple tenants.
A recent report by Cushman & Wakefield on the industrial market in the Baltimore metro area recently found demand for industrial space fell in the third quarter of the year. About 515,000 square feet of space were absorbed during the last quarter, which brings the year-to-date absorption to 1.2 million square feet. That’s down from the same period last year, when more than twice as much of the available space was becoming occupied.
The major reason for the slowdown is the all the supply coming onto the market in the Baltimore metro area. The overall vacancy rate remained at 8.3 percent with leasing activity declining year-over-year by 19 percent. At the same time the manufacturing sector in the Baltimore metro area added 400 jobs in the third quarter helping to push the unemployment rate down to 5.5 percent in the Baltimore-Towson metropolitan statistical area. But the report’s outlook for the market segment in the near term is fairly optimistic.
“The future delivery of class A W/D product is expected to elevate the market’s vacancy rate. However, the current vacancy rate is still low enough to make new construction desirable. Newly delivered product is expected to remain unoccupied longer than expected, but asking rents will continue to increase over the next 12 months,” according to the report.