Office development in Annapolis is continuing at a brisk rate, notwithstanding the reduction of absorption in office space in general in other submarkets in the Baltimore metropolitan area, according to Scott Wimbrow, senior vice president and principal of MacKenzie/ONCOR International.

Annapolis Exchange, a 120,000-square-foot Class A office building, is currently under construction by Constellation Properties. "We expect this building to be fully leased by the end of the year," notes Wimbrow. Also under construction and scheduled for completion in the first quarter of 2002 is 888 Bestgate Rd., a 130,000-square-foot Class A office building being developed by MIE Properties. Approximately 600,000 square feet of other space is planned for the market area.

The majority of the development is taking place surrounding the mall and Science Park Drive, which is a new extension of Admiral Cochrane Drive on the east side of Annapolis. Both of these areas have been targeted for growth by the city and the county.

New developers in the area include MIE Properties (888 Bestgate Road and Annapolis Technology Park), Jerome J. Parks (Park Place) and Constellation Properties (One Annapolis Exchange). Several leases have been signed recently in Annapolis Exchange, including Nationwide Insurance, 25,000 square feet; RGII Technologies, 12,500 square feet; SAIC, 12,500 square feet; and Hannon Armstrong, 5,000 square feet.

Rents in the Annapolis office market range from $23.50 to $27.50 per square foot, full service. Vacancy rates are at 9.71 percent.

"I would say the Annapolis submarket is an area to keep an eye on," says Wimbrow. "There has been a tremendous amount of pent up demand in this market and no substantial construction during the last 10 years. New highway improvements allowing quick access to the submarket from either Baltimore or Washington within 30 minutes continue to support growth in the submarket."

Annapolis remains a strong submarket in the current climate. Its quality of life coupled with new highway improvements mean that more and more companies are discovering the value to the submarket.

Scott Wimbrow, SIOR, is senior vice president/principal with MacKenzie/ONCOR International.


©2001 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.