Sales transaction volume eclipsed $76 million, led by $37 million sale of Old Dobbin Business Park
Although nearly 350,000 square feet of commercial office space was leased in Q2 2022, the overall vacancy rate in the Columbia, Maryland region ticked up slightly to 13.2%, after finishing Q1 2022 at 12.7% according to the latest market report released by Lee & Associates | Maryland. Negative net absorption rose to nearly 24,000square of space from 14,000 square feet of space, but the average rental rate rose slightly again to $26.48 from $26.45 per square foot, which continued a recent trend, according to the fully-integrated commercial real estate brokerage and management firm headquartered in Columbia.
“The Columbia office market continues to slightly fluctuate, but there were no major changes during the past three months as employers strive to lure employees back to the traditional workplace,” stated Bill Harrison, Senior Vice President, Lee & Associates | Maryland. “We are seeing a flight-to-quality with newer buildings and their attractive and diverse amenities drawing the attention of prospective tenants. There is persistent activity among downtown-based companies interested in establishing a hub-and-spoke model in less-dense suburb locations, which is also driving activity. Rising interest rates and the prospects for inflation have pushed some companies into a wait-and-see mode, which is delaying real estate decisions.”
Old Dobbin Business Park, which recently sold for $37 million
Significant lease transactions included the 85,000 square foot lease by CareFirst BlueCross BlueShield at 6100 Merriweather Drive; the 63,600 square foot lease executed by Merkel at 7001 Columbia Gateway Drive and the 21,000 square foot lease signed by Venture X at 8865 Stanford Boulevard.
The sales transaction volume eclipsed $76 million, led by the $37 million purchase of Old Dobbin Business Park in Columbia by Goodier Properties. Other significant sales wereBetnall Green Oak’s acquisition of 4801 Dorsey Hall Drive in Ellicott City for $21.3 million and the $6 million purchase of 9811 Mallard Drive in Laurel.
No commercial office buildings were delivered in Q2 and only two buildings, totaling 80,000 square feet of space, are currently under construction. This includes the 60,000 square foot building at 7140 Contee Road in Laurel and a 20,000 square foot project at 6761 Dorsey Road near BWI in Howard County.
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada. Lee & Associates provides superior market intelligence in office, industrial, retail, investment and appraisal to meet the specialized needs of our clients. Visit https://www.lee-associates.com/offices/office/?id=1591
