The 11th annual Commercial Real Estate Symposium, hosted by the Hunt Valley Business Forum, showcased the latest trends in the Baltimore County real estate market. The event, held at the Executive Plaza, attracted over 150 attendees, including business owners, brokers, and landlords. Here are the key insights presented:
Hunt Valley Towne Centre 3.0 Transformation
Retail Development: With new retail projects slowing down, the national occupancy rate has surged beyond 95%. This trend is reflected locally at Hunt Valley Towne Centre, where consumer visits rose from 6.8 million to 7.1 million in the past year.
Multifamily and Senior Living: Version 3.0 of Hunt Valley Towne Centre focuses on mixed-use development, highlighted by the recent opening of the Brightview Senior Living facility.
Future Plans: Greenberg Gibbons plans to enhance the common areas of the center, adding family-friendly amenities such as concerts and movie nights, with completion expected by spring 2025.
Post-Pandemic Office Space Trends
Flight to Quality: Many companies are transitioning to higher-quality office spaces after downsizing during the pandemic. Properties like Executive Plaza, which underwent a $15 million renovation, are attracting tenants willing to pay higher rents for upgraded amenities.
Medical Office Building (MOB) Success: The MOB sector is thriving, with vacancy rates in Towson at just 8%. Suburban office spaces remain in recovery, with an 18% vacancy rate overall, but medical facilities are driving demand as healthcare providers move closer to residential areas.
Industrial and Warehouse Sector Outlook
Slower Leasing Pace: The once-booming industrial/warehouse market has seen a slight slowdown, though it remains robust. Rental rates have risen above $10 per square foot, with vacancy rates in the I-83 corridor under 4%.
Cold Storage Demand: Cold storage is becoming more prevalent due to increased grocery delivery services and a resurgence in the restaurant industry post-pandemic.
Major Transactions: Notable lease agreements include the Dill Dinkers pickleball venue and R.F. Fager. Significant property sales include 60 Loveton Circle ($4.3 million) and 221 Cockeysville Road ($3.75 million).
Predictions for 2024
Rent and Sale Price Increases: Due to limited inventory and lower interest rates, rents and sale prices are expected to rise.
New Development: St. John Properties plans to break ground at Hunt Valley Exchange, a 17-acre development offering flex/R&D and retail space, slated for completion in 2026.
Conclusion
The symposium underscored the resilience and vibrancy of the Hunt Valley real estate market. From retail evolution to strong demand in medical and industrial sectors, the region’s commercial landscape remains active and competitive.
