market watch office space - Transwestern

MARKET WATCH
OFFICE SPACE
February 2009
BALTIMORE METRO AREA
All Office Buildings
Buildings Built 1985 - Present
Direct Vac. Rate Direct SF Under Q4 2008 All of 2008
Total SF Available Vacancy w/Sublet Total SF Available Vacancy Construction or Net Net
Submarkets Rentable SF 1 Immediately 2 Rate Space Rentable SF 3 Immediately 2 Rate Renovation Absorption (SF) Absorption (SF)
Baltimore County West 10,447,476 982,063 9.4% 9.7% 5,155,810 592,918 11.5% 138,000 79,000 140,000
Baltimore County North 14,975,014 1,512,476 10.1% 10.3% 5,905,123 572,797 9.7% 113,798 (29,000) 60,000
Baltimore County East 2,061,031 344,192 16.7% 16.7% 480,543 4,325 0.9% 104,400 27,000 62,000
Baltimore CBD 17,891,713 1,985,980 11.1% 12.4% 8,604,903 963,749 11.2% 144,623 (36,000) 36,000
Balance of Baltimore City 13,964,861 1,913,186 13.7% 14.0% 3,692,957 683,197 18.5% 982,642 (14,000) 62,000
Columbia 12,528,005 1,616,113 12.9% 13.8% 6,930,223 977,161 14.1% 176,451 28,000 170,000
Route 1 North 1,145,773 293,318 25.6% 26.0% 542,178 79,700 14.7% 18,000 155,000 88,000
BWI 9,619,454 1,192,812 12.4% 13.5% 5,564,012 606,477 10.9% 498,000 58,000 541,000
Anne Arundel South 5,743,039 373,298 6.5% 7.0% 1,847,418 134,862 7.3% - 63,000 212,000
TOTAL - Baltimore Metro 88,376,366 10,213,438 11.6% 12.2% 38,723,167 4,615,187 11.9% 2,175,914 331,000 1,371,000
1
Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.
2
Does not include sublet space.
3 Includes buildings 50,000 SF RBA and greater built 1985-present, except for Baltimore CBD, which includes those buildings that are defined as Class A by CoStar and are 50,000 SF or greater.
SUBURBAN MARYLAND
All Office Buildings
Buildings Built 1985 - Present
Direct Vac. Rate Direct SF Under Q4 2008 All of 2008
Total SF Available Vacancy w/Sublet Total SF Available Vacancy Construction or Net Net
Mont. Co. Submarkets Rentable SF 1 Immediately 2 Rate Space Rentable SF 3 Immediately 2 Rate Renovation Absorption (SF) Absorption (SF)
Bethesda/Chevy Chase 10,998,448 571,919 5.2% 8.3% 4,879,211 200,048 4.1% 295,000 (33,000) 121,000
North Bethesda 10,326,658 1,270,179 12.3% 13.4% 4,424,299 654,796 14.8% - (21,000) (78,000)
Rockville 8,269,890 934,498 11.3% 12.1% 3,115,207 370,710 11.9% 411,970 8,000 144,000
North Rockville 11,280,358 1,015,232 9.0% 11.3% 7,679,746 645,099 8.4% 539,800 11,000 292,000
Gaithersburg 5,281,815 776,427 14.7% 17.4% 1,489,124 335,053 22.5% - (21,000) 87,000
Germantown 2,435,685 314,203 12.9% 15.0% 1,682,920 272,633 16.2% - 12,000 (36,000)
Kensington/Wheaton 1,406,234 88,593 6.3% 6.6% 65,000 - 0.0% - (7,000) (37,000)
Silver Spring 6,853,910 527,751 7.7% 8.2% 3,538,215 187,525 5.3% 134,450 27,000 (76,000)
N. Silver Spring/Rt. 29 2,980,145 199,670 6.7% 8.1% 1,590,620 76,350 4.8% - (15,000) (35,000)
TOTAL - Montgomery Co. 59,833,143 5,698,472 9.5% 11.3% 28,464,342 2,742,213 9.6% 1,381,220 (39,000) 382,000
Prince George’s Co. Submarkets
Beltsville/Calverton/Coll. Pk. 5,181,784 777,268 15.0% 15.9% 2,072,946 232,170 11.2% 391,762 52,000 10,000
Laurel 2,509,823 278,590 11.1% 13.0% 1,471,426 132,428 9.0% - 8,000 25,000
Greenbelt 3,016,041 639,401 21.2% 23.9% 1,412,715 305,146 21.6% - 60,000 (154,000)
Lanham/Landover/Largo 4,951,020 955,547 19.3% 20.9% 2,137,730 433,959 20.3% - 25,000 (123,000)
Bowie/Marlboro/South P.G. 5,811,217 726,402 12.5% 13.5% 1,858,682 297,389 16.0% - 40,000 398,000
TOTAL - Prince George’s Co. 21,469,885 3,377,208 15.7% 17.2% 8,953,499 1,401,093 15.6% 391,762 185,000 156,000
Frederick County 5,627,441 579,626 10.3% 10.8% 3,355,814 419,477 12.5% 109,493 - 197,000
TOTAL - Suburban Maryland 86,930,469 9,655,306 11.1% 12.7% 40,773,655 4,562,783 11.2% 1,882,475 146,000 735,000
1
Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.
2
Does not include sublet space.
3
Includes buildings 50,000 SF RBA and greater.
COLUMBIA OFFICE 443.285.0770 & 301.621.8800 • BETHESDA OFFICE 301.571.0900
Source: Delta Associates, research affiliate of Transwestern, based on its proprietary analysis of CoStar data.

MARKET WATCH
FLEX/INDUSTRIAL SPACE
February 2009
BALTIMORE METRO AREA
Total Direct Direct Available Vacancy Rate
Submarkets Inventory 1 Avail. Space 2 Vacancy Rate Sublease Space w/ Sublease Space
Baltimore County West 18,825,640 1,411,923 7.5% 75,303 7.9%
Baltimore County North 7,884,578 607,113 7.7% - 7.7%
Baltimore County East 24,607,235 3,026,690 12.3% 49,214 12.5%
Baltimore City 37,095,997 3,227,352 8.7% 148,384 9.1%
Columbia 13,430,989 2,296,699 17.1% 282,051 19.2%
Route 1 North 27,964,042 2,516,764 9.0% 195,748 9.7%
BWI 25,163,002 1,811,736 7.2% 276,793 8.3%
Harford County 19,567,475 1,721,938 8.8% - 8.8%
Anne Arundel South 3,982,725 230,998 5.8% - 5.8%
TOTAL 178,521,683 16,851,212 9.4% 1,027,493 10.0%
Q4 2008 All of 2008 Space Under Space Under
Submarkets Absorption (SF) Absorption (SF) Construction Renovation
Baltimore County West (213,000) 647,000 - -
Baltimore County North 135,000 332,000 - 160,428
Baltimore County East (87,000) 883,000 502,000 -
Baltimore City 663,000 556,000 - 202,225
Columbia (195,000) (980,000) 66,585 25,000
Route 1 North 28,000 199,000 72,000 -
BWI 89,000 405,000 45,120 -
Harford County 482,000 1,416,000 84,000 30,000
Anne Arundel South (66,000) (52,000) - -
TOTAL 836,000 3,406,000 769,705 417,653
1
Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.
2
Does not include sublet space.
SUBURBAN MARYLAND
Total Direct Direct Available Vacancy Rate
Submarkets Inventory 1 Avail. Space 2 Vacancy Rate Sublease Space w/ Sublease Space
Prince George’s County 47,841,358 5,023,343 10.5% 621,938 11.8%
Montgomery County 22,916,353 1,718,726 7.5% 229,164 8.5%
Frederick County 12,558,573 1,833,552 14.6% 226,054 16.4%
TOTAL 83,316,284 8,575,621 10.3% 1,077,155 11.6%
Q4 2008 All of 2008 Space Under Space Under
Submarkets Net Absorption (SF) Net Absorption (SF) Construction Renovation
Prince George’s County (82,000) 274,000 84,040 -
Montgomery County (77,000) (73,000) - -
Frederick County 274,000 395,000 52,000 -
TOTAL 115,000 596,000 136,040 -
1
Includes buildings 15,000 SF RBA and greater. Does not include buildings under construction; does not include buildings owned by the government.
2
Does not include sublet space.
COLUMBIA OFFICE 443.285.0770 & 301.621.8800 • BETHESDA OFFICE 301.571.0900
Source: Delta Associates, research affiliate of Transwestern, based on its proprietary analysis of CoStar data.

MARKET WATCH
MARKET ACTIVITY
February 2009
BALTIMORE METRO AREA - OFFICE
Leases
Tenant Address Sq. Ft.
DaimlerChrysler Financial Services Americas (Renewal) 6085 Marshalee Drive 18,000
Investment Sales
No notable sales.
Leases
BALTIMORE METRO AREA - FLEX/INDUSTRIAL
Tenant Address Sq. Ft.
Boise Cascade 7700 Rolling Mill Road (warehouse) 204,000
Turkey Greek Trading Co. 1-208 Azar Court (warehouse) 25,000
The Baltimore Rigging Company, Inc. 8149 Norris Lane (warehouse) 16,000
Transcare Corporation 1125 DeSoto Road (warehouse) 15,000
Investment Sales
No notable sales.
SUBURBAN MARYLAND - FLEX/INDUSTRIAL & OFFICE
Leases
Tenant Address Sq. Ft.
Department of Defense (Renewal) 6340 Columbia Park Road (warehouse) 60,000
SRA International 8490 Progress Drive (office) 31,000
Vietnam Veterans of America 8719 Colesville Road (office) 17,000
Scientific Hospital Supplies, Inc. (Renewal) 9900 Belward Campus Drive (office) 16,000
Bechtel National (Renewal) 7435 New Technology Way (warehouse) 10,000
National Association of Realtors Federal Credit Union 9707 Key West Avenue (office) 10,000
Investment Sales
No notable sales.
COLUMBIA OFFICE 443.285.0770 & 301.621.8800 • BETHESDA OFFICE 301.571.0900
Source: Delta Associates, research affiliate of Transwestern, based on its proprietary analysis of CoStar data.