Prices for the recent sale of two industrial properties in the Interstate 95 corridor totaled more than $25 million, according to broker Cushman & Wakefield.
High Street Real Estate sold a fully leased, 167,490-square-foot asset at 6685 Santa Barbara Court in Jessup to STAG Industrial for roughly $13.25 million. Capital Partners sold its 85%-leased 101,297-square-foot building at 8250 Preston Court in Elkridge to TA Realty for more than $12.2 million.
“Both projects are located along I-95 in the Baltimore-Washington corridor, one of the premier industrial markets in the country,” Graham Savage, senior director of Cusman & Wakefield’s capital markets team, said in a statement. “The industrial market in the region is firing on all cylinders and attracting investment interest from all over the world.”
Savage, along with Cushman & Wakefield’s executive managing director, represented the sellers in both deals, which closed on April 1. TA Realty also hired the firm’s industrial leasing team to fill 16,766 square feet of space at 8250 Preston Court.
The industrial market in the Baltimore region was the highest performing commercial real estate sector last year.
Demand for property, especially in the I-95 corridor, has been driven in large part by the demand for distribution space by e-commerce firms. The area’s position within a relatively short drive of the roughly 22 million consumers in the combined Washington and Baltimore markets boosts demand for the asset type.
Cushman & Wakefield’s most recent market report placed the region’s industrial vacancy rate at 7.1%, which is a 120 basis point increase year over year.
Along I-95 the industrial market vacancy rate reached 8.2% with more than 89.5 million square feet of space available and nearly 6 million square feet of warehouse and distribution space under construction.
The rise in available space isn’t from slowing demand, but the result of 4.4 million square feet added to the area’s industrial inventory in 2018.
“The Baltimore industrial metro market will continue to shine in 2019, as companies are attracted to the location and affordability the region provides. Already in 2019 Floor & Décor, Home Depot and Smithfield have inked new build-to-suit deals in the market,” according to the market report.