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SOMETHING NEW IN ANNAPOLIS

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SOMETHING NEW IN ANNAPOLIS
Chris Bennett on Oct. 17, 2012
The Navy left behind 32k SF of office at 2551 Riva Rd in Annapolis, putting a rare full floor on the market, albeit sublease space. (One lucky tenant will get a full floor and some leftover epaulettes.) MacKenzie Commercial Real Estate Services' Chris Bennett—who's marketing it with colleagues Scott Wimbrow, Patricia Farrell, and Justin Mullen—says ARINC sold its six-building campus to its own pension fund and then leased it back a few years ago. The Navy had been subleasing from ARINC but in August moved to Douglas Development's 185 Admiral Cochrane Dr for a one-year term. (Chris tells us the Navy's RFP for Antiterrorism/Force Protection space for just one year was a tall order, but Douglas took a gamble that it'd be able to lock the tenant in for a longer term later.)
2551 Riva Rd, Annapolis
Chris says Annapolis office vacancy, including sublease, is 15%, but there's little quality space, and the large contiguous block could attract a government tenant, especially with 10 years left on the term.Sublease space is an entirely different ballgame, with three parties (landlord, sublandlord, and tenant) instead of two jockeying for position, he says. While not necessarily the case with ARINC, sublandlords often don't have the upfront cash to offer for TIs, for example, though they can make up for it in free rent (a staggered expense).