2 Large Speculative Projects Rising in the Baltimore MSA
If you have seen Revista’s metro trends you may have noticed the Baltimore MOB market is one of the tightest in the country. The MOB occupancy rate has averaged between 93.9% and 94.8% since the 2nd quarter of 2018. Given the “tight” conditions, it would naturally make sense for MOB developers to take notice. Overall, construction levels in the market are not high at just 1.8% of current inventory but 2 developers have recently targeted the market with large medical focused projects.
Whalen Properties has started grading for a proposed 90,000 SF MOB at 350 Kenwood Avenue in Catonsville, MD. The $25 million Southwest Physicians Pavilion is fully approved after years of legal battles. Whalen properties is actively marketing the space but has yet to secure an anchor tenant as of last check. Proposed rents are $34.95 full service which compares to current average of $25.80 NNN for MOBs in the primary market area.
Down the road in Annapolis, MD (well, about a 30-minute drive) another large MOB is under construction. St. John Properties is building a 100,000 SF MOB at 810 Bestgate Road which is located less than one half mile from Anne Arundel Medical Center. St John Properties has secured a large veterinary practice for the building but still had over 90,000 SF available at last check. The building is scheduled to complete by mid-2020 so Revista will monitor its progress.