downtown rental market

the zenith - one of downtown's newest appartment buildings (photo by mitro hood)

The national housing slowdown hasn't hurt residential growth here in Downtown. We gained roughly 1,000 new residents last year, and we predict that number will grow this year.

Demand for apartments, in particular, is very strong. Many buildings are currently 100% leased, and new properties just hitting the market are leasing fast.

According to an article by Aaron Cahall in today's Baltimore Examiner, last month 148 rentals listed through a multiple listing service were leased - up 180% over June of 2007.

This makes sense. Typically, rentals increase when it's tough going in the "for sale" market. Like squeezing a balloon, if things tighten on one end, they'll expand on the other.

We anticipate demand to continue to be strong and are keeping our eye on the supply of apartments. With existing buildings close to full occupancy there should to be new properties hitting the market. But, as we document in our 2007 / 2008 State of Downtown Report, there isn't a lot of new housing construction in the pipeline right now.

-Mike Evitts

vegas, baby

“What happens in Vegas, stays in Vegas.” Normally, that’s a smart move. But we’re hoping that’s not the case with the International Council of Shopping Centers’ (ICSC) annual Global Retail Real Estate Convention we attended recently.

With more than 50,000 attendees, this is the Mecca of retail recruitment. National retailers, real estate brokers, and developers make the trek each year to find the perfect location for that next retail expansion.

For the past seven years, The Partnership and Baltimore Development Corporation, in conjunction with local sponsors, have hosted a booth at the trade show. The main purpose, pure and simple, is to bring more shops and restaurants to Baltimore.

We go to ICSC armed with an arsenal of stats and data. More often than not, we're introducing people to the real Baltimore for the first time (not the wild west version they may have seen on TV). And, across the board people are impressed, and surprised, by what the data shows.

As we just released in the latest State of Downtown Baltimore Report, Downtown has 114,000 employees, 38,000 residents, and 20,000 students. Not to mention millions of visitors each year. We rank 7th in the country for population density, 15th for employment density, and 9th for the number of households earning $75K or more -- which puts us in a peer group with places like Denver and Boston.

So instead of hitting the casinos we spent our time in Vegas reviewing demographics, courting potential redevelopment opportunities, and marketing available retail spaces. We had formal meetings with more than 30 companies, some of which we’re trying to bring here. Others are here already, but we hope they’ll expand to additional locations.

It often takes years to bring a new retailer into a market and we work with them throughout the entire process, introducing them to local developers and real estate brokers, helping match the business with the right location, and assisting with building permits, signage, or marketing… whatever it takes.

After decades without much in the way of shopping, Downtown is re-emerging as a retail destination. When Filenes Basement opened last year it marked the return of department stores to Downtown. SuperFresh has opened in City Center. Lockwood Place and Harbor East are thriving. So, too, are retail corridors in Downtown’s adjacent neighborhoods like in Mount Vernon, Federal Hill, Locust Point.

Despite a slow national economy, the pace of Downtown retail openings should pick up. Whether or not these new deals started in Vegas, opening retail in Downtown is no gamble.

-nan

competitiveness

trading floor at T. Rowe Price (Photo by Mitro Hood)

A recent national study that compares the economic strengths of major metropolitan areas has ranked Baltimore as the eleventh most competitive place in the country. (They're talking about economic competitiveness, not trying to imply that we're all cut-throat.)

The rankings, compiled by the Beacon Hill Institute at Suffolk University, are based on eight categories: government & fiscal policy, security, infrastructure, human resources, technology, business incubation, openness, and environmental policy.

We used to be lumped in with Washington, DC (which ranks 5th this year). It's about time statistictians realized that Baltimore and Washington are two distinct cities.

-mike