The Suburban Maryland industrial market slowed during 2018, ending the year with 444,479 sq. ft. of occupancy gains, the second year with decelerating growth following a peak year in 2016. Although the market posted more than 1 millions sq. ft. of expansionary activity during the quarter, it was partially offset by Toys “R” Us vacating 670,000 sq. ft. in Frederick County.
Construction activity was subdued in 2018, with 484,539 sq. ft. of deliveries at 37.7% preleased, the lowest annual volume since 2014. With 541,199 sq. ft. under construction and another 200,000 sq. ft. proposed, 2019 is poised to register a modest increase in development activity.
The largest completed project of 2018 was 7501 Andrews Federal Campus Drive in the Pennsylvania Avenue submarket of Prince George’s County, which delivered 167,146 sq. ft. vacant before an undisclosed tenant leased 112,226 sq. ft. during Q3.
Investment sales totaled $921.6 million during 2018, the second highest volume since 2006.