1. real estate
2. apartments

STATE OF
DOWNTOWN
REPORT 2014
ISSUED MARCH 2015
DOWNTOWN BALTIMORE
Station
North
2 0 1 4 O N E - M I L E R A D I U S T O TA L S
Employment ......................... 123,879
Residents ............................... 41,606
Office Space .........................28M S.F.
Hotel Rooms ............................8,000
Bolton
Hill
State
Center
Johnston
Square
Mount
Vernon
University of Maryland
Medical Center Midtown
Kennedy
Krieger
Institute
Heritage
Crossing
Old Town
Seton
Hill
Preston
Gardens
Cathedral
Hill
Mercy
Medical
Center
Bromo
Poppleton
Historic
Jonestown
UMB
Charles
Center
VA Hospital
of Maryland
University
of Maryland
Medical Center
City
Hall
Fells Point
Royal
Farms
Arena
Little
Italy
Inner
Harbor
Ridgely’s
Delight/
Stadiums
Harbor
East
Otterbein
Pigtown/
Washington
Village
Johns
Hopkins
Hospital
Camden
Yards
Harbor
Point
SharpLeadenhall
South
Baltimore
Westport
One mile radius from Pratt & Light intersection
Federal
Hill
Locust
Point
Mario Polèse, author of The Wealth and Poverty of Regions: Why
Cities Matter, has observed that, “Not so long ago, most
urbanists were predicting the demise of downtowns. The data, after
all, pointed unambiguously to declining central-city populations and
expanding suburban ones in nearly every American metropolitan
area between 1950 and 1980. But downtowns didn’t go the way of the
dinosaur. In fact, most of them have begun to grow again.”
He’s right. Nationally, employment in city centers is growing while suburban employment growth is
beginning to decline. Citing numerous studies, Polèse finds that the keys to this growth include a
resurgence in business services jobs, neighborhoods that are active 24 hours a day, and, perhaps most
importantly, a mixed-use symbiosis created when people cluster where they work with where they live.
Downtown Baltimore, in 2014, continued to capitalize on all these trends, growing its employment and
residential base, adding retail, welcoming performance venues like Chesapeake Shakespeare Theatre,
and seeing increased private sector activity that included high-value commercial real estate transactions
and progress on long-awaited projects such as One Light Street, Mechanic Center, and the former
McCormick site.
T O P 2 5 L A R G E S T U . S . M E T R O A R E A S : O N E - M I L E R A D I U S S TAT I S T I C S
AVERAGE HOUSEHOLD
INCOME
POPULATION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
New York
San Francisco
Chicago
Philadelphia
Los Angeles
Seattle
Boston
Washington, DC
Baltimore (8)
San Diego
Denver
Miami
Minneapolis
Houston
Portland
Atlanta
Pittsburgh
Orlando
Dallas
Charlotte
Phoenix
St. Louis
Tampa
San Antonio
Detroit
188,496
119,707
92,316
80,406
77,013
61,211
49,620
44,120
41,606
40,486
38,873
36,819
34,856
24,144
22,787
20,163
18,145
17,986
16,488
16,202
15,313
12,231
10,627
9,061
6,881
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
New York
Washington, DC
Chicago
Boston
Charlotte
Houston
Philadelphia
Tampa
Dallas
San Diego
San Francisco
Miami
Minneapolis
Seattle
Baltimore (14)
Portland
Denver
Pittsburgh
Orlando
San Antonio
Atlanta
St. Louis
Los Angeles
Detroit
Phoenix
$157,807
$120,671
$119,862
$115,738
$97,266
$93,140
$91,570
$86,941
$82,168
$76,310
$74,371
$73,258
$71,870
$71,793
$71,625
$71,298
$68,751
$63,177
$58,120
$56,639
$56,269
$54,089
$44,781
$44,407
$37,922
HOUSEHOLDS OVER $75,000
ANNUAL INCOME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
New York
Chicago
San Francisco
Philadelphia
Seattle
Washington, DC
Boston
Denver
San Diego
Minneapolis
Miami
Los Angeles
Baltimore (12)
Dallas
Portland
Charlotte
Houston
Orlando
Tampa
Atlanta
Pittsburgh
St. Louis
Phoenix
San Antonio
Detroit
67,566
31,114
21,141
18,243
12,811
12,790
12,685
7,924
7,892
6,566
6,321
5,916
5,854
4,111
3,708
3,215
2,977
2,614
2,413
1,726
1,655
1,597
817
736
706
EMPLOYMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
New York
1,193,065
Chicago
378,993
Washington, DC
308,639
Boston
244,628
Philadelphia
231,937
San Francisco
217,366
Seattle
211,125
Houston
199,186
Los Angeles
149,091
Minneapolis
135,186
Denver
133,089
Baltimore (12)
123,879
Dallas
121,460
Pittsburgh
110,539
Atlanta
99,413
Charlotte
81,047
San Diego
78,773
San Antonio
77,621
Detroit
65,011
Miami
59,944
Phoenix
58,689
Orlando
56,752
St. Louis
55,235
Tampa
43,145
Portland
38,896
( ) - last year’s ranking
*Source: Claritas
2
01.
OFFICE SPACE
There was a good deal of commercial activity in 2014 as international investors
capitalized on Downtown’s growing market value, particularly in Charles Center where
almost twenty major new projects were underway and companies such as Cigna and
KAO announced they would be moving into Downtown and signed leases totaling
more than 35,000 square feet. Three office towers sold for strong prices and multiple
additional properties were listed by year’s end.
Pratt Street office occupancy rates remained in the high 90th percentile last year in 2014,
led by companies like R2Integrated (15,400 square-foot expansion) and Shapiro Sher
Guinot & Sandler (new 15,000 square-foot lease). Last year also marked a significant
turn-around for Downtown in terms of attracting large companies from suburban
Maryland. Pandora, KAO, and MAIF were among the firms that departed locations in
adjacent counties and relocated into Downtown to take advantage of its
diverse and growing pool of worker talent.
Downtown-wide, some commercial brokerage
analyses saw vacancy rates rise modestly, while
others observed a decrease. Averaging these out,
the vacancy rate was up very slightly to 16.8% in
2014 versus 16.1% in 2013, with Class A lease rates
remaining unchanged at $22-$27 per square foot.
NOTABLE LEASE TRANSACTIONS
Name
Address
OneMain Financial
100 International Dr. Relocation
Financial Services Firm
Pandora Jewelry, LLC
Maryland State Retirement and Pension System
Downtown Partnership of Baltimore, Inc.
Behavioral Health System Baltimore
Cigna
CBRE Group, Inc.
Shapiro Sher Guinot & Sandler
KAO USA Inc.
250 W. Pratt St.
120 E. Baltimore St.
20 S. Charles St.
1 N. Charles St.
111 S. Calvert St.
100 E. Pratt St.
250 W. Pratt St.
100 N. Charles St.
Jewelry Manufacturing & Distribution
State Government
Nonprofit Organization
Nonprofit Organization
Insurance Company
Commercial Real Estate Firm
Law Firm
Beauty Product Manufacturing & Distribution
2014 VACANCY: NATIONAL & REGIONAL STANDINGS
5%
16.83%
14.97%
13.92%
14.56%
10%
15%
New Lease
Renewal & Expansion
Relocation
Relocation
New Lease
Relocation
Relocation
New Lease
Business Type
Downtown Baltimore
Baltimore City
Baltimore Metro
National
Sq. Footage
109,156
87,862
72,373
22,027
21,998
21,417
15,971
15,530
14,486
2014 OFFICE MARKET STATISTICS
20%
* Downtown Baltimore, Baltimore City, and Baltimore Metro Vacancy Sources:
CBRE, Cushman & Wakefield, DTZ, JLL, MacKenzie, Newmark Grubb Knight Frank,
and Transwestern
* National Vacancy Sources: CBRE, Cushman & Wakefield, DTZ, JLL, and Newmark
Grubb Knight Frank
3
Type of Lease
Year End 2013
Vacancy
Rents – Class A
Rents – Class B
Year End 2014
16.1%
16.8%
$22-$27
$16-$19
$22-$27
$16-$20
* Class A/B Rent Sources 2013: Cassidy Turley, CBRE, Cushman & Wakefield,
and Newmark Grubb Knight Frank
* Class A/B Rent Sources 2014: CBRE, Cushman & Wakefield, DTZ, JLL, MacKenzie,
and Newmark Grubb Knight Frank
* Downtown Baltimore Vacancy 2013 Sources: Cassidy Turley, CBRE, Cushman & Wakefield,
MacKenzie, Newmark Grubb Knight Frank, and Transwestern
* Downtown Baltimore Vacancy 2014 Sources: CBRE, Cushman & Wakefield, DTZ, JLL,
MacKenzie, Newmark Grubb Knight Frank, and Transwestern
02. EMPLOYMENT
After adding 10,000 jobs in 2012 and more than 9,000 jobs in 2013, Downtown employment
increased by approximately 1,600 jobs in 2014. With a total of nearly 124,000 jobs, Baltimore
maintained its rank as the 12th largest downtown employment center among the top 25
largest metro areas in the U.S.
EMPLOYMENT BY INDUSTRY SECTOR:
PERCENT OF TOTAL EMPLOYEES
5%
10%
15%
20%
19%
Healthcare & Social Assistance
14%
12%
Professional, Scientific & Technical Services
Public Administration
11%
8%
6%
Accommodation & Food Services
Finance & Insurance
Information
4%
4%
Construction
4%
19%
Retail Trade
Educational Services
Other*
* The “Other” category consists of the following sectors: Agriculture, Utilities, Manufacturing,
Wholesale Trade, Transportation and Warehousing, Real Estate, Management of Companies,
Administrative, Other Services, and Arts Entertainment and Recreation. Each of these
categories consisted of less than 5% of total employment
* Source: Claritas
4
03. HOUSING
Downtown’s overall apartment occupancy rate was a strong 94%.
A lack of available new units constrained supply, capping 2014 net
population growth to just 635 people despite continued strong
demand. Three large new buildings hit the market – 301 N. Charles
(96 units), 520 Park Avenue (171 units), and The Lenore
(102 units). Each has been leasing up ahead of schedule.
Downtown’s overall population rose to just over 41,000. Despite
the increase, Downtown’s national rank for population dropped
one spot to 9th, as Washington, DC rose to number 8 with
44,000 residents.
The rate of Downtown’s population increase is expected to rise more quickly as the pace
of residential delivery speeds up. Almost 5,100 units are in the pipeline through 2017.
Major properties expected to hit the market in 2015 include 10 N. Calvert (188 units),
10 Light Street (420 units), and 26 S. Calvert (167 units).
NOTABLE RESIDENTIAL OPENINGS
Project Name
Address
Project Type
Housing Type
The Lenore
114 E. Lexington Street
Conversion
Rental — Market Rate
# of Units
102
301 North Charles
520 Park
301 N. Charles Street
520 Park Avenue
Conversion & New Construction
Conversion
Rental — Market Rate
Rental — Market Rate & Affordable Housing
96
171
FOR SALE HOUSING MARKET SUMMARY
Housing Type
Properties Sold
Average Sale Price
Median Sale Price
Condo
101
$374,131
$280,000
Townhome
312
$298,931
$276,250
AT THE END OF 2014
93.7%
OF THE APARTMENTS
*Source: MRIS
THAT ARE AVAILABLE IN
DOWNTOWN
CLASS A APARTMENT BUILDING RENTAL RATES
Apartment Size
Average Price per S.F.
Studio
$2.68
1 Bedroom
2 Bedroom
3 Bedroom
All unit types
$2.21
$2.04
$2.29
$2.20
* Includes 13 buildings within the one-mile radius defined by the following criteria: built after 1995;
100 units or greater; building amenities and quality finishes in units
5
BALTIMORE WERE RENTED
2014 DOWNTOWN HOUSING PIPELINE
Residential projects that were under development at the end of 2014.
Station
North
Bolton
Hill
State
Center
Johnston
Square
Science + Technology
Park at Johns Hopkins
Mount
Vernon
University of Maryland
Medical Center Midtown
Kennedy
Krieger
Institute
Heritage
Crossing
Old Town
Seton
Hill
Preston
Gardens
Cathedral
Hill
Poppleton
Mercy
Medical
Center
Bromo
Historic
Jonestown
UMB
UMB Biopark
Charles
Center
VA Hospital
of Maryland
University
of Maryland
Medical Center
Hollins
Market
Johns
Hopkins
Hospital
Washington
Hill
City
Hall
Royal
Farms
Arena
Little
Italy
Inner
Harbor
Ridgely’s
Delight/
Stadiums
Fells Point
Pigtown/
Washington
Village
Harbor
East
Otterbein
Camden
Yards
Harbor
Point
SharpLeadenhall
South
Baltimore
Westport
Residential properties in the pipeline through 2017
One mile radius from Pratt & Light intersection
Federal
Hill
Locust
Point
04.
HOSPITALITY & HOTELS
The Star Spangled Spectacular and strong convention attendance improved hotel
performance across indices, with an impressive average occupancy rate of 69% –
nearly back to pre-recession levels. Once again, Downtown hotels outperformed the
region and the nation in terms of occupancy, average daily room rates, and revenue
earned per room.
NOTABLE HOTEL OPENINGS
Project Name
Address
Hyatt Place – Baltimore / Inner Harbor
511 S.Central Ave. Conversion/Renovation
Project Type
No. of Rooms
208
DOWNTOWN
*Source: Smith Travel Research
7
ROOMS
149
REV PAR
$74.28
$115.32
ADR
OCCUPANCY
REV PAR
BALTIMORE METRO
64.4%
$121.36
65.6%
0
$114.60
$50
25%
69.0%
50%
$165.99
$100
$79.56
ADR
ADR
OCCUPANCY
75%
REV PAR
$150
OCCUPANCY
100%
492
HOTEL
UNDER CONSTRUCTION
HOTEL PERFORMANCE
$200
IN 2014 THERE WERE
NATIONAL
MORE ROOMS IN
PLANNING
05. RETAIL
Photo by Mark Dennis
More than 90 restaurants and retailers opened, or signed leases, in 2014. With employment and residential
densities that rank among the top 20 downtowns nationally, the most transit options within the region, and
an average household income of $71,600, Downtown Baltimore is an increasingly strong retail location that
should become stronger as new residents drive demand, national retailers look more aggressively for urban
space, and office and apartment developments continue to add ground-floor retail space.
NOTABLE RETAIL OPENINGS AND LEASES
Name
Address
Business Type
Status*
AGGIO
614 Water St.
Restaurant
Open
Blue Moon Café
Chick-fil-A
Chicken Rico
Dinosaur Bar-B-Que
Encantada
Family Meal
Floyd’s 99 Barbershop
LUSH Fresh Handmade Cosmetics
Madewell
Maiwand Grill
Nalley Fresh
Shake Shack
1024 Light St.
400 E. Pratt St.
55 Market Pl.
1401 Fleet St.
800 Key Hwy.
621 E. Pratt St.
511 S. Central Ave.
1001 Aliceanna St.
811 Aliceanna St.
324 W. Baltimore St.
400 E. Pratt St.
400 E. Pratt St.
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Retail
Retail
Retail
Restaurant
Restaurant
Restaurant
Coming Soon
Coming Soon
Open
Coming Soon
Coming Soon
Open
Coming Soon
Open
Open
Open
Coming Soon
Open
* Family Meal, Madewell, and Shake Shack opened in Winter 2015
RETAIL VACANCY RATES
2%
7.1%
5.0%
10.2%
4%
6%
8%
10%
THE TOTAL AMOUNT OF 2014 RETAIL SALES IN
DOWNTOWN BALTIMORE WAS
National
Baltimore Metro
1.58 BILLION
D O L L A R S
Downtown* – Multi-tenant Projects
*Includes Lockwood Place, Harborplace, The Gallery, and Harbor East
*Source: Claritas
8
WELCOME BACK CHARLES CENTER
Charles Center is more than Downtown’s historic core. A host of development projects
are adding new residents, theatres, restaurants, and employees.
2014 COMPLETED
1.
Chesapeake Shakespeare Company
7 S. Calvert Street
Conversion to 260-seat theater.
Developer: Chesapeake Shakespeare Company
2.
25 S. Calvert Street
Landscaping and fencing of vacant lot.
Developer: Downtown Partnership of Baltimore
3.
Water & Light Apartments
25 Light Street & 104 Water Street
Conversion to 14-unit market rate
apartments. First floor retail retained.
Developer: Republic Investment Company
4.
Lord Baltimore Hotel
20 W. Baltimore Street
Renovation of former Radisson hotel.
12. Calvert & Water Apartments
26-36 S. Calvert Street & 31 S. Grant Street
Conversion to 189-unit market rate
apartments and first floor retail.
Q2 2015 delivery.
Developer: PMC Property Group
13. Equitable Building
10 N. Calvert Street
Conversion to 188-unit market rate
apartments & first floor retail.
Q2 2015 delivery.
Developer: JK Equities
14. The Munsey Apartments
7 N. Calvert Street
Elevator, lobby and unit renovations of
market rate apartments. Ongoing.
Developer: Village Green
Developer: Rubell Hotels
5.
The Lenore
114 E. Lexington Street
Conversion to 102-unit market rate
apartments and first floor retail.
Developer: Baybridge Properties
6.
301 N. Charles Street
Conversion to 97-unit market rate
apartments.
Developer: PMC Property Group
7.
McDonald’s Facade Improvement
101 E. Baltimore Street
Restoration of historic building.
Developer: McDonalds Corporation
IN PROGRESS
8.
Crowne Plaza Hotel
1 E. Redwood Street
Conversion to 150-key Crowne Plaza
Hotel and first floor retail. Q3 2015 delivery.
Developer: Tran Group
9.
10 Light Street
Conversion to 420-unit market rate
apartments and 25,000 SF retail.
Q2 2015 delivery.
Developer: Metropolitan Baltimore
10. Mechanic Centre
1 W. Baltimore Street
Mixed-use, 306-unit market rate apartments;
110,000 SF retail; 404 parking spaces.
2016 delivery.
Developer: David S. Brown Enterprises, Ltd.
11. Wilkes Lane
Landscaping, pedestrian lighting, Wi-Fi,
and outdoor dining area.
Developer: Downtown Partnership of Baltimore
& adjacent owners
PLANNING
15. Hotel RL Baltimore
207 E. Redwood Street
Conversion to 130-key hotel. Q3 2015 delivery.
Developer: Red Lion Hotels
16. Courthouse Plaza
100 block of St. Paul Street
Renovation and beautification.
Q4 2015 delivery.
Developer: Downtown Partnership of Baltimore
& City of Baltimore
17. Preston Gardens
St. Paul Street
Reconfiguation, stabilization and
beautification project. 2016 delivery.
Developer: Downtown Partnership of Baltimore,
City of Baltimore & State of Maryland
18. Liberty Park
144 W. Fayette Street
New construction, 92 mixed-income
apartments. 2016 delivery.
Developer: New Urban Equities
19. Central Savings Bank
1 E. Lexington Street
Conversion to 26-unit market rate apartments
and 9,000 SF retail. 2016 delivery.
Developer: Poverni Sheikh
20. 225 N. Calvert Street
Conversion to 350-unit market rate
apartments. 2016 delivery.
Developer: Monument Realty
21. One Light
5-11 Light Street & 105-115 E. Baltimore Street
Mixed-use, 362-unit market rate apartments;
287,000 SF office; 9,000 SF retail; 657
parking spaces. 2017 delivery.
Developer: Metropolitan Baltimore
9
Fayette St
Hopkins Plaza
Royal Farms
Arena
Lombard St
Grant St
Baltimore St
Calvert St
Wilkes Ln
War
Memorial
Gay St
Lexington St
Holliday St
St
St Paul St
Preston
Gardens
Guilford St
Fayette St
Center
Plaza
Charles St
Lexington St
N. L
iber
ty
Clay St
10
PRESENTING SPONSORS:
LEADERSHIP SPONSORS:
PATRON SPONSORS:
ARCHITECTURE
LANDSCAPE ARCHITECTURE
INTERIOR DESIGN
PLANNING
FRIEND SPONSORS:
WRH Property
Management, LLC
This report is produced by Downtown Partnership of Baltimore, which is solely
responsible for its content. Data is collected by, or on behalf of, Downtown
Partnership from multiple sources and covers activity within a one-mile radius of the
intersection of Pratt and Light streets. Charts, graphs, maps, and images are the
property of The Partnership unless otherwise noted.
Downtown Partnership of Baltimore is a 501(c)(6) non-profit incorporated in the
State of Maryland. It has approximately 650 member firms throughout the midAtlantic region from dozens of industry sectors.
For more information about Downtown Partnership, its reports, or to become a
member, please visit www.GoDowntownBaltimore.com, call us at 410.244.1030,
or email us at [email protected]. You can also find Downtown Partnership of
Baltimore on Facebook and twitter @DowntownBalt.
DESIGNED BY INSIGHT180 BRANDING & DESIGN