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First Quarter | 2012

MacKenzie Market Report

Submarket: Retail

Retail Submarket Map
Quarter Highlights
  • jcpenney has signed on as the second anchor at Boulevard at Box Hill. The national department store retailer will join lead anchor Wegman's at the ongoing development upon completion of construction later this year. The 85,775 square foot location is expected to deliver in early Fall.
  • CVS/pharmacy has purchased a 1.76 acre parcel at Maple Lawn in Fulton, Maryland that is strategically located at the intersection of Route 216 and Westside Boulevard, neighboring the existing McDonald's, as you enter the community. The nation's leading retail pharmacy is scheduled to open the full-service location in the summer of 2012.
  • Harborplace & the Gallery officials are expecting the Light Street Pavilion to be occupied at nearly 100 percent this summer with an abundance of new tenants; a two-story 12,500 sf Ripley's Believe It or Not!, a 13,000 sf Bubba Gump Shrimp Co., and a 3,800 sf McCormick World of Flavors. Marble Slab Creamery and Great American Cookies will be taking space on Level 2 of the Pratt Street Pavilion later this Spring. The Light Street Pavilion will also debut a new 7,500 sf food court on the first level featuring Subway, Chicken Now, Paciugo Gelato & Caffe, and China Max, all of which will be filling the vacancy created with the departure of Phillips Seafood.
  • White Marsh Mall in White Marsh, Maryland will be home to several new eateries starting in spring 2012 with a 429 sf Charley's Grilled Subs and a 972 sf space on the upper level occupied by Yolavie self-serve frozen yogurt. In late summer 2012 Italian Restaurant Buca di Beppo, will open a 6,944 sf space followed in Fall 2012 by 5,776 sf Green Turtle.

Market Outlook

By Thomas L. Fidler, Jr., MacKenzie Retail

Although the current status of the national retail market continues to show sluggish growth, early signs within the start of 2012 are creating optimism in both sales and leasing projections for this year. Absent the presence of national economic concerns, national political matters, and ongoing concerns in the housing market, consumer activity and spending has been brisk in the 1st Quarter. With consumer spending showing an increase, following a positive expenditure report for the 2011 holiday season, and not to mention the warm winter months, both local and national retailers are seeing positive growth in year to date sales over last year statistics, but only in certain market segments or price points. Continued growth in value based on dollar sensitive retailing operations are the prominent recipients of this optimism. In addition, the retail service sectors of casual dining, spa, salon, and entertainment are reporting an uptick in sales and consumer activity. Fashion continues to experience sporadic growth in the extremes of the low and high price points; middle America retailers continue to struggle in their search for increased sales.

On the local retail front, excitement continues to build over the current development projects in the Baltimore metro area; Canton Crossing, Foundry Row, Waugh Chapel South, Boulevard at Box Hill, Maple Lawn, and Metro Center. The recent announcement of jcpenney to locate at the Box Hill project in Abingdon, MD., the only US store currently planned, should be a great bolster to tenant interest. The upcoming public hearings on the planned Foundry Row in Owings Mills, to be anchored by Wegmans Food Market, should generate substantial interest. Early reports on tenant interest in the project are exceeding expectations.

Market activity for small shop leasing has been brisk with many local retail business owners believing that the market has reached its bottom and improvement has begun. Now's the time to get in before that great opportunity is no longer available. Landlords continue to show their willingness to be flexible with rent reductions, abatements, and creative leasing packages. With a current expectation of little change in the market rental rates and vacancy, the upcoming months should give way to stronger leasing activity, a small absorption in inventory of available space, and a slight increase in the average market rental rate.

Notable Transactions
Lease

Location Submarket Tenant Amount Leased SF
8115 Belair Road White Marsh/Perry Hall Overstock Furniture 30,000 sf
801-809 Goucher Boulevard York Road Corridor Home Goods 21,000 sf
130-170 W. Ridgeley Road York Road Corridor GolfTEC 21,000 sf

Sale

Location Submarket Price PSF Size
1351 Blair Road Annapolis $4,025,000 $1,085.20 3,709 sf
3732 St. Paul Street Baltimore City $1,600,000 $756.14 2,116 sf
8191 Westside Boulevard Columbia $2,000,253 $555.63 3,600 sf

(r) Renewal

 

* All information furnished regarding property for sale, rent, exchange or financing is from sources deemed reliable. No representation is made as to the accuracy thereof and all such information is submitted subject to errors, omissions, or changes in conditions, prior sale, lease or withdrawal without notice. All information should be verified to the satisfaction of the person relying thereon. Portions of the base statistics are from CoStar Property data. Data as of 3/2012.