I-95 Corridor's About-Face

Preston Sheffenacker Properties' 800k SF warehouse sale in Belcamp is proof of the resurrection of the Harford/Cecil submarkets, while leasing efforts at Marshfield Business Center closer to the city could spark a wave of spec development. (Are we violating decency laws using a four-letter word like "spec?")
Preston Scheffenacker founder David Sheffenacker is in the market for new artwork, considering his firm has sold Gateway at Riverside to Chambers Street Properties (the new incarnation of CB Richard Ellis Realty Trust, so an institutional buyer). CBRE's Bill Pellington told us this morning Procter & Gamble chose to early renew and expand there, and once that 10-year lease was signed, David hired CBRE to sell the property he has framed in the office.

Bill considers the disposition a smart move for Preston Sheffenacker considering today's super low cap rates and Harford/
Cecil's Class-A vacancy rate turnaround: 21% in Q4 2010 to 6% at the end of Q3 '12. (That's a wonderful improvement on your report card.) Bill tells us some deals in the works will push it below 5%. Those are good conditions for the development of the 400k SF-capacity parcel that came with the Chambers Street's purchase.

Bill and colleagues Justin Mohler, Adam Weidner, and Tony Mink are also leasing the last Class-A warehouse space left in the Baltimore East/port submarket. Once the 583k SF at 8410, 8411 (above), and 8415 Kelso Dr in Rosedale's 1.2M SF Marshfield Business Park go, developers may launch spec projects they've got waiting. The 40M SF submarket has only 3.6M SF available, much of it in smaller blocks or older buildings. And Bill's Magic 8-Ball says,"Outlook good" for lease-up at Marshfield now that pricing is aligned with demand.

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