AGCO preleases 50,000 square feet of 140,450 square foot building within the Trimble Road Business Park that, together with 210,000 square foot building, are expected to deliver in 2019
Chesapeake Real Estate Group, LLC (CREG), the Baltimore-based commercial real estate development and operating company, on behalf of TA Realty LLC (TA Realty), has broken ground on a two-building site consisting of 350,000 square feet of warehouse/industrial space on a speculative basis within the Trimble Road Business Park in the Edgewood section of Harford County, Maryland. TA Realty acquired the site from CREG in 2018 and is moving forward with the construction of 102 Fulfillment Drive, comprising 210,000 square feet of speculative space and 103 Fulfillment Drive, containing 140,450 square feet of space.
AGCO, a company engaged in the design, manufacture and distribution of agriculture equipment and solutions has preleased 50,000 square feet of space within 103 Fulfillment Drive, representing approximately 35% of the building.
“The Trimble Road site works extremely well because it allows us to get quality products to our dealers more efficiently,” stated David Rubin, Director of Operations, Imported Equipment for AGCO Corporation. “The additional training space will increase our ability to keep both internal and external stakeholders informed on improvements, offerings and procedures.”
CREG’s brokerage operation is partnering with Toby Mink, Senior Vice President and Jon Casella, First Vice President of CBRE to lease the two buildings which will both deliver in 2019.
“The development philosophy of CREG continues to be to proactively construct real estate product to remain ahead of tenant demand,” explained Matt Laraway, SIOR, Partner at Chesapeake Real Estate Group. “We are extremely confident and excited to build another project in Harford County’s business-friendly environment and hope to capitalize on the strong market fundamentals.”
103 Fulfillment Drive is a Class “A” building that is 140,450 square feet with approximately 90,000 square feet available. 102 Fulfillment Drive is also a Class “A” building and will be equipped with 18 dock doors and two drive-in doors with construction scheduled for the 2nd quarter of 2019. Both structures are being built utilizing the concrete tilt-up method of construction and will feature 32 foot clear ceiling heights and 7” unreinforced concrete floor slabs to accommodate heavy loads.
The two buildings are situated within three miles from Interstate 95, 14 miles from Interstate 695, 24 miles from the Port of Baltimore, 34 miles from Baltimore-Washington International Airport and 52 miles from the Port of Wilmington. The site has access to nearly 50 percent of the nation’s population within a one-day truck drive.
According to third quarter 2018 research released by CBRE, the vacancy rate for warehouse product in the Harford County/Cecil County submarket, comprising nearly 28 million square feet of space, stands at 1.1%. More than 700,000 square feet of space was absorbed in the most recent quarter and the market has achieved 1.2 million square feet of net absorption to date in 2018. Larger user activity throughout the greater Baltimore metropolitan region was generated by e-commerce, retail fulfillment, food & beverage, building materials and third-party logistics. The report concluded that, given the historically tight nature of the market and increasing demand from end-users, industrial asking rates are expected to rise further over the next 12 to 18 months.
“Regionally, the volume of transactions remains unprecedented as retailers cannot gain access fast enough to large-scale warehouse buildings situated near major population centers to support the same-day or next-day delivery expectations of the American consumer,” Laraway added. “We are riding a wave that few have experienced in their real estate careers. Much of this activity is being driven by the tremendous liquidity in the capital markets, coupled with the insatiable demand for stabilized industrial product by institutional owners.”
CREG also constructed the 571,000 square foot Perryman Logistics Center, located at 610 Chelsea Road in the Aberdeen section of Harford County and, in 2016, executed a full-building lease with XPO Logistics in fall 2016.
Chesapeake Real Estate Group, LLC, headquartered in Baltimore, Maryland, is a fully-integrated commercial real estate operating company that focuses on real estate development, leasing, property management and brokerage services. The company owns a diverse portfolio encompassing Class “A” industrial and commercial office properties, as well as retail centers. Chesapeake Real Estate Group also participates in joint venture partner arrangements on select investments. The firm currently has more than two million square feet of industrial projects planned or under construction in the Mid-Atlantic region and over three million square feet under management. Notable projects include the Perryman Logistics Center, Port 95 Industrial Park, Penn 95 Commerce Center, Baltimore Crossroads @95 and 210 Allegheny Avenue. For more information visit www.cregllc.com
TA Realty is among the largest and most experienced providers of real estate investment management services to institutional and private investors. Since its inception in 1982, TA Realty has managed more than $29 billion of real estate assets through a series of commingled core and value-added open-end and closed-end funds and customized core separate accounts. TA Realty’s investment philosophy focuses on creating diversified real estate portfolios that generate strong cash flow, benefit from intensive asset management and result in long-term value creation. For more than three decades, TA Realty has maintained this philosophy through multiple real estate and economic cycles, a strength recognized by leading pension funds, endowments, foundations and high net worth individuals. For more information please visit www.tarealty.com.