🚨Cushman & Wakefield brokered the $18 million sale of Owings Mills Commerce Center (132,656 SF; two buildings) at ≈$136/SF to Fernau LeBlanc, extending a roll-up of infill light-industrial across Maryland. The asset is ~95% leased to nine small-bay/flex users with freeway access to I-795/I-695, targeting Baltimore-Washington last-mile demand. Pricing lines up with recent small-bay comps (~$138/SF), implying a mid-6% cap on in-place rents and underscoring investor preference for stabilized, operations-forward industrial.
Sale price / size: $18,000,000 for 132,656 SF (≈$136/SF), closing Sept 2025
Occupancy / tenancy: ~95% leased to nine tenants at sale
Baltimore industrial vacancy: 8.5% (Q2 2025, metro)
Avg. asking rent: $10.92/SF NNN (metro, Q2 2025); older flex submarkets ≈$9/SF
Loan Performance. Mid-6% going-in yields versus ~6.5–7% debt suggest neutral/near-neutral leverage; modest rent marks and leasing the residual vacancy are needed to lift DSCR and refi options. Shorter WALT across nine tenants favors incremental mark-to-market, but adds rollover/LC exposure.
Demand Dynamics. Beltway infill serves ~9.9 million Baltimore–DC consumers; small-bay absorption is steadier than big-box, with service/logistics users prioritizing access over clear height. Expect concessions to be minimal for sub-10k SF bays in constrained nodes.
Asset Strategies. Preserve uptime via targeted capex: dock/door maintenance, yard resurfacing, LED upgrades, and spec-suite readiness for fast backfills. Tight expense controls and CAM clarity defend NOI in modified-gross legacy leases.
Capital Markets. Private regional buyers are aggregating small-bay clusters at mid-6%–7% caps; portfolio premium potential exists on exit. CMBS/life co’s remain open for stabilized infill at lower leverage; debt funds price lease-up risk with structure.
Rates higher; yield matters—income-led industrial is clearing at realistic caps.
Favored: infill small-bay serving dense suburbs; watch older flex with functional specs.
Financing: target 55–60% LTV; plan LC/TI and rate protection.
Spreads/structure: require TI/LC escrows on near-term roll; tighten SNDA/estoppels.
🛠 Operator’s Lens
Refi. Lock prepay-flex fixed debt once NOI lifts (lease-up/mark-to-market); consider caps if floating inside 12–24 mo refi window.
Value-Add. Tie paint/LED/dock upgrades to renewals; hold 3–5% of EGI for LC/TI.
Development. N/A—focus on adaptive spec-suiteing and demising flexibility for 5–30k SF users.
Lender POV. Preference for stabilized, multi-tenant infill with proven rollover plan; DSCR ≥1.35x at stressed rates; escrowed LC/TI.
Watch metro leasing prints in small-bay Beltway nodes for rent-mark evidence.
Validate cap-rate stability via the next 2–3 flex trades and lender term sheets.
Risk: negative metro absorption elongates downtime on larger bays; mitigate with spec suites and early renewals.
Cushman & Wakefield — Owings Mills Commerce Center Sale Announcement (Sept 2025). Cushman & Wakefield — Baltimore Industrial MarketBeat (Q2 2025). CoStar — Fernau LeBlanc Maryland Industrial Acquisitions (2024–2025 coverage).
