SOUTHEAST SNAPSHOT, MARCH 2007

Baltimore Retail Market

Every corridor around Baltimore and the surrounding counties is seeing tremendous activity in unanchored, infill, strip locations, which is an indication of how tight the market is. The tight market is encouraging development in previously overlooked areas. Anchor Square, a 75,000-square-foot grocery-anchored project that opened last year, is a good example. It is located on a former industrial site and features the first new Shoppers Food and Pharmacy in the city.

In downtown Baltimore, which has been considered under-retailed, there is strong interest in urban sites. A 15,000-square-foot Super Fresh has just opened a new urban concept in Charles Plaza, developed by Southern Management’s David Hillman, surrounded by a rebounding residential market. The former Mechanic Theatre site in central downtown is scheduled to be redeveloped for mixed-use development encompassing 80,000 square feet. New retailers coming into downtown Baltimore City include Filene’s Basement and Fogo de Chao, which are joining Capital Grille and Best Buy in David S. Brown’s Lockwood development.

Further along Baltimore’s booming waterfront is the Harbor East project, a joint venture between H&S Properties Development and Struever Bros. Eccles and Rouse. This 38-acre mixed-use development covers 8 square blocks, 3 million square feet, and includes 500,000 square feet of retail and entertainment space. Local and national tenants in this high-end project are anchored by the Marriott Waterfront and the new Four Seasons Hotel, which is scheduled to deliver in late 2009. Whole Foods Market serves the increasing residential sector in this posh downtown redevelopment, which was a warehouse district not long ago.

At Baltimore’s renowned Inner Harbor, General Growth Properties has updated Harbor Place and the Gallery, in which Urban Outfitters has joined J. Crew, The Discovery Channel Store, Coach, Brooks Brothers, Banana Republic and 13 restaurants including The Cheesecake Factory, California Pizza Kitchen and Phillips Seafood Restaurant. General Growth is also committed to major renovations at Baltimore’s Mondawmin Mall, which will be anchored by the city’s first Target and a Shoppers.

In the surrounding counties there has also been significant new retail development with good examples of redevelopment of older sites. Greenberg Gibbons has led the successful conversion of the old Hunt Valley Mall into the upscale open-air Hunt Valley Towne Centre anchored by the region’s first Wegmans. In addition, Greenberg Gibbons is developing The Village at Waugh Chapel and Annapolis Towne Centre at Parole in Anne Arundel County, a $400 million joint venture with Petrie Ventures. The property consists of approximately 33 acres and was originally developed as an open-air mall just outside of Annapolis. This mixed-use project, currently under construction, will contain approximately 650,000 square feet of retail space, 90,000 square feet of office space, a full-service hotel and 900 residential units.

In the future, areas close to the military base realignment (BRAC) path from Cecil and Harford counties are expected to expand their retail capacities. Manekin is developing Bulle Rock, a mixed-use golf course community along with Water’s Edge Corporate Campus near these areas.

— Dicky Darrell is director of retail brokerage and Gay G. Legg is vice president of marketing for Manekin/CORFAC International in Baltimore.


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