2016 st ate of downtown baltimore report · comprising just 3.8% of baltimore, downtown’s one...

ISSUED MARCH 2017

2016 StAtE of Downtown BAltIMoRE REpoRt

SetonHill

HeritageCrossing

Pigtown/Washington

Village

Otterbein

Ridgely’sDelight/

Stadiums

FederalHillSharp-

Leadenhall

Fells Point

UpperFells

HarborPoint

HarborEast

LittleItaly

HistoricJonestown

Old Town

JohnstonSquare

StationNorth

BoltonHill

StateCenter

Upton

MountVernon

Bromo Arts District

PrestonGardens

InnerHarbor

CharlesCenter

Westport

SouthBaltimore

PortCovington

LocustPoint

University of MarylandMedical Center Midtown

UMB Bio ParkVA Hospital

of Maryland

Universityof Maryland

Medical Center

MercyMedicalCenter

JohnsHopkinsHospital

KennedyKrieger

Institute

Science + TechnologyPark at Johns Hopkins

University of Maryland, Baltimore

Royal Farms Arena

Cross Street Market

Horseshoe Casino

onE-MIlE RADIUS MAp

Employment: 122,242

Residents: 42,861

Office Space: 28 M S.f.

Hotel Rooms: 8,301

1

1 new York 190,886

2 San francisco 126,787

3 Chicago 94,737

4 philadelphia 82,950

5 los Angeles 73,477

6 Seattle 66,761

7 Boston 51,572

8 washington, DC 46,821

9 San Diego 43,850

10 Baltimore (9) 42,861

11 Denver 42,492

12 Miami 38,045

13 Minneapolis 35,852

14 Houston 26,206

15 portland 23,782

16 Atlanta 22,542

17 orlando 18,968

18 Dallas 18,386

19 pittsburgh 18,376

20 Charlotte 17,915

21 phoenix 15,738

22 St. louis 12,381

23 tampa 11,721

24 San Antonio 9,593

25 Detroit 6,810

1 new York $169,782

2 Chicago $134,928

3 Boston $128,731

4 washington, DC $119,551

5 Houston $118,588

6 Charlotte $108,110

7 Dallas $103,622

8 philadelphia $103,481

9 San Diego $94,374

10 Seattle $94,282

11 tampa $94,234

12 Miami $92,565

13 San francisco $91,581

14 Minneapolis $86,314

15 Denver $82,199

16 Baltimore (17) $80,605

17 pittsburgh $79,590

18 portland $76,371

19 orlando $75,937

20 San Antonio $69,424

21 Atlanta $61,884

22 Detroit $59,744

23 St. louis $56,427

24 los Angeles $56,413

25 phoenix $48,235

1 new York 72,464

2 Chicago 35,272



5 Seattle 18,729

6 Boston 14,760


8 Denver 10,773

9 San Diego 9,759

10 Miami 8,640



13 Baltimore (13) 7,039

14 Dallas 5,699

15 portland 4,235

16 Charlotte 4,231

17 Houston 4,008

18 orlando 3,380

19 tampa 2,818

20 Atlanta 2,141

21 pittsburgh 2,074

22 St. louis 1,626


24 phoenix 1,047

25 Detroit 969

1 new York 1,113,471

2 Chicago 376,788


4 Boston 298,976


6 Seattle 215,710

7 Houston 197,312




11 Denver 140,164

12 Atlanta 132,878

13 pittsburgh 125,334

14 Baltimore (13) 122,242

15 Dallas 104,854

16 Charlotte 85,520

17 Miami 79,410


19 San Diego 75,142

20 orlando 74,540

21 Detroit 73,141

22 St. louis 70,784

23 phoenix 62,877

24 tampa 46,038

25 portland 40,878

Average Household Income

Households over $75,000

Employment

Source: Claritas ( ) = last year’s ranking

Population

Top 25 Largest U.S. Metro Areas: One-Mile Radius Statistics

Downtown Baltimore continues to thrive. It is the economic engine for the city and region, generating extraordinary returns far beyond its small geographic footprint. Comprising just 3.8% of Baltimore, Downtown’s one mile radius holds 29% of the City’s businesses and 35% of its jobs. More than 45% of Downtown residents are also employed in Baltimore, a figure which turned the heads of retailers, investors, and developers on the both the national and local scales in 2016.

Major projects came to life, like the completion of 10 Light Street’s residential space and the Under Armour Performance Center Powered by FX Studios; the blink-and-you’ll-miss-it construction of 414 Light Street and 500 Park Avenue, and the opening of Harbor Point’s first phase.

Look around the next time you leave the office after work or walk to your favorite deli at lunch. The figures in this report reflect daily life in Downtown. The sidewalks and bike paths are filled with commuters, new restaurants are popping up every week, and ‘For Lease’ signs are coming down as our tech industry blossoms and new employers seek to give their staff the best work/life balance available.

This activity matters. It stimulates investment. It creates opportunities for 122,000 employees. It is a reflection of one of the most densely-packed residential downtowns in the country. And it drives incomes and tax revenues that benefit Baltimore City and the region as a whole.

A CIty on tHE RIsE

executive summary

2

housing

Rental units are the bulk of the housing inventory within the statistical area used by this report. Census Tract 401 (the area encompassing the majority of the Charles Center, Preston Gardens, and the Bromo Tower Arts & Entertainment District neighborhoods) continues to prove itself as the fastest-growing residential neighborhood in Baltimore. Downtown also boasts a diverse base, with nearly half of its residents identifying as minorities, making the city’s center a true cross section of Baltimore.

Housing occupancy dropped to 91.3% in 2016, as two major residential projects came online. As these large projects continue their strong leasing activity, the overall Downtown occupancy number is expected to even out to its typical 94–95%. The most noteworthy delivery of 2016 was Mulberry at Park, 68 spacious units of affordable housing in the heart of Downtown.

The sale of million dollar condos created a big jump in Downtown average sale prices last year. With luxury homes at the Ritz Carlton currently for sale and the Four Seasons residences primed to come on the market, Downtown will continue to see a rise in sale price figures.

somEtHIng foR EvERyonE

Rendering of 500 Park Avenue

mulberry at ParkGoDowntownBaltimore.com

3

Source: MRIS

For Sale Housing Market Summary

Housing type Properties sold Average sale Price median sale Price

Condo 122 $567,406 $297,000

townhome 345 $356,018 $273,950

26 N. Calvert Apartments Phase II 26-36 S. Calvert Conversion Rental - Market Rate 168 and 31 S. Grant Street

The 501 501 w. franklin Street Conversion Rental - Market Rate 139

The Vault 1-5 E. lexington Street Conversion Rental - Market Rate 25 and 113 n. Charles Street

Mulberry at Park 211 w. Mulberry Street Conversion Rental - Affordable Housing 68

Notable Residential Openings

Project name Address Project type Housing type # of Units

“ Of particular note, Baltimore’s fastest-growing neighborhood today, the traditional central business district, is also one of its most integrated.”

—Baltimore Sun Editorial, January 15, 2017

Class A Apartment Building Rental Rates

Apartment size Average monthly Rent

Studio $1,351.15

1 Bedroom $1,650.13

2 Bedroom $2,190.39

3 Bedroom $3,013.43

All unit types $1,807.48

Market Rate Building Occupancy

91.3%

*this includes 18 buildings within the one-mile radius defined by the following criteria: built after 1995; 100 units or greater; building amenities; and quality finishes in units.

*In reporting 2016 data, Downtown partnership changed its methodology to include all market rate apartments with approximately 100 units or more, regardless of the level of stabilization. prior reports excluded new buildings that had not yet stabilized, defined as 75% occupancy. Using prior methodology, 2016’s occupancy rate would have been 93.6%.

YEAR ENd2016

Source: Downtown partnership and individual developers

Rendering of 500 Park Avenue

mulberry at Park

four seasonsResidences

4

retail

Retail occupancy decreased this year as major properties like Harborplace restructured their leases to accommodate property improvements. The occupancy rate is fully expected to increase as these changes come to fruition, and as Pratt Street continues to attract major retailers.

There were many notable openings as retailers continue to be won over by Downtown’s impressive residential and employment growth. A healthy retail economy features both “mom and pop” shops as well as national brands, and this year Downtown welcomed local outfits like The Bun Shop, CorCycle, and Loch Bar alongside names like Starbucks, Warby Parker, and West Elm.

Exciting retail additions are also coming to Harbor East, including the 50,000 square foot Whole Foods set to come online next year.

A HEAltHy REtAIl mIx

loch Bar in Harbor East

CorCycleGoDowntownBaltimore.com

5

Downtown Retail Sales

Retail Occupancy Rates

Bricknfire pizza 110 S. Eutaw Street Restaurant open

Brooks Brothers 809 Aliceanna Street Retail open

Collector’s Corner 403 n. Charles Street Retail open

CorCycle 115 n. Charles Street Gym open

David and Dad’s Café 113 n. Charles Street Restaurant open

Insomnia Cookies 812 S. Broadway Restaurant open

lB Skybar 20 w. Baltimore Street Restaurant open

loch Bar 280 International Drive Restaurant open

Mi & Yu noodle Bar 520 park Avenue Restaurant open

Starbucks 10 light Street Restaurant open

the Bun Shop 22 light Street Restaurant open

the Elephant 924 n. Charles Street Restaurant open

warby parker 807 Aliceanna Street Retail open

Notable Retail Openings And Leases

name Address Business type status

Baltimore Metro

downtown* Multi-tenant Projects

93.7% 95.4% 89.5%

National

Source (for National): CoStar, Integra Realty Resources, Marcus and Millichap, MacKenzie Commercial, and Downtown property managers and brokers.*Includes Lockwood Place, Harbor East, Harbor Point, The Gallery, and Harborplace.

totAl Downtown sAlEs

$1.168BIllIon

The Under Armour Performance Center Powered by FX Studios was an exciting addition to Downtown in 2016. It includes the fitness component as well as a retail space and spa, and anchors the residential spaces in the recently converted 10 Light Street building.

Source: Claritas

loch Bar in Harbor East

CorCycle

Under Armour Performance Center retail space

6

office

Downtown neighborhoods continued to attract businesses of all types and sizes. Notable lease transactions ranged from the Army Corps of Engineers taking over 161,481 square feet at 2 Hopkins Plaza to MECU’s relocation into 61,000 square feet at 1 South Street. Additionally, Morgan Stanley announced plans to expand into 100 S. Charles Street, adding over 53,000 square feet to its already sizable Downtown footprint.

Baltimore continued to make a name for itself as a hot spot for the tech community. Spark, a collaborative co-working space, filled its offices within its first year of operation. Downtown Partnership helped five tech companies move into Spark through its Tech Connect Grant program.

tHE BUsInEss of Downtown

spark co-working space at 8 market Place

GoDowntownBaltimore.com

7

U.S Army Corps of Engineers 2 Hopkins plaza Relocation Government 161,481

RK&K 111 Market place Relocation Engineering firm 116,000

MECU 1 South Street Relocation financial Services Company 61,000

Morgan Stanley 100 S. Charles Street Expansion financial Services Company 57,035

whiteford taylor preston 7 St. paul Street Renewal law firm 39,338

Bambeco 621 E. pratt Street Relocation online Home Supplier 22,000

Bolton partners 36 S. Charles Street Relocation Employee Benefits Consultant 18,397

womble Carlyle Sandridge & Rice 100 light Street new lease law firm 15,676

Jll 500 E. pratt Street Renewal Brokerage firm 11,415

KRA Corporation 19 E. fayette Street Expansion Human Resources/workforce Development 10,277

paragon Bioservices 801 w. Baltimore Street Relocation Biotechnology firm 10,120

Vascular Institute of Maryland 323–351 w. Camden St. Relocation Healthcare 8,500

Baltimore Magazine 1000 lancaster Street Renewal news/Media publication 8,000

penonni Engineers 323–351 w. Camden St. Renewal Engineering firm 6,800

Baltimore Business Journal 36 S. Charles Street Relocation news/Media publication 6,487

Notable Lease Transactions

name Address type of lease Business type sq. ft.

tHE BUsInEss of Downtown

Last year, Exelon moved into its new 450,000 square foot headquarters, joining Morgan Stanley as the anchor tenants of Harbor Point. Construction on the new bridge connecting Harbor Point to Central Avenue also began to accommodate the high volume of employees and residents. As Exelon employees got comfortable in their new space, engineering firm RK&K backfilled a significant portion of the previous Exelon offices in the Candler Building, and with Pratt Street’s continued success it is reasonable to assume that more tenants will quickly follow.

mAkIng movEs

Exelon’s expansive new trading floor

occupancy 84% 84%

Rents — Class A $23–28 $22–27

Rents — Class B $19–21 $16–21

2016 Office Market Statistics 2016 Occupancy National and Regional Standing

year End 2016

year End 2015

Downtown Baltimore 84.03%Baltimore City 86.55%

86.88%Baltimore Metro

national 86.35%Source: CBRE, Cushman & Wakefield, JLL, MacKenzie, Newmark Grubb Knight Frank, and Transwestern.

Source: CBRE, Cushman & Wakefield, JLL, MacKenzie, Newmark Grubb Knight Frank, and Transwestern.


8

employment

Downtown comprises less than 4% of Baltimore’s total geography, but contains more than one third of the city’s jobs. It is excellent news for the city as well as the state, then, that Downtown saw its employment figure rise from 118,723 in 2015 to 122,242 in 2016. According to our Economic Impact Report released earlier this year, nearly 60% of Downtown employees are between 30 and 54, and more than 30% of Downtown jobs are held by city residents. Downtown Baltimore can also boast a diverse working core —over 40% of employees identify as African-American or other racial groups.

EmPloymEnt Is UP Downtown

Employee’s Race or Ethnicity

Black or African American

American Indian or Alaska Native

Asian Native Hawaiian or Other Pacific Islander

Two or More Race Groups

Hispanic or Latino

57% 37% 0.3%5% 0.1%1%4%

White

Healthcare and Social Assistance 22%

public Administration 16%

14%

14%

professional, Scientific, and technical Services

Accommodation and food Services 9%

9%

5%

4%

4%

3%

finance and Insurance

Information

other Services (except public Administration)

Educational Services

Retail trade

other*

Employment by Industry Sector Employee’s Place of Residence Commuting From:

Baltimore City Baltimore County Anne Arundel County

Howard County Harford County dC and surrounding

counties

32% 30% 8%

8%6% 5%

*Consists of the following sectors: Arts, Entertainment & Recreation; Administrative; Real Estate; Manufacturing; Utilities; Transportation; Construction, and other services. Each of these categories consisted of less than 2% of the total employment. Source: Claritas

Source: 2016 Downtown Partnership of Baltimore Economic Impact Report

Source: 2016 Downtown Partnership of Baltimore Economic Impact Report

9

Three new hotels were slated to open in 2016 but will instead open their doors this year. These include La Quinta and Staybridge, as well as Delta Hotels by Marriot which began taking reservations in January. Overall, Downtown hotels outperformed the nation in terms of occupancy, average daily room rates, and revenue earned per room. Also of note, Hilton Hotel and Baltimore Harbor Hotel were both re-branded to Hilton Baltimore Inner Harbor and Radisson Hotel Baltimore-Inner Harbor, respectively.

HosPItAlIty & HotEls

hospitality & hotels

Downtown 67.6% $164.82 $111.34

Baltimore Metro 66.4% $144.66 $97.39

national 65.5% $121.57 $79.81

total number of overnight Visitors 10.4 Million 10.2 Million

total number of Visitors 25.2 Million 24.5 Million

total overnight Visitor Spending 4.18 Billion 3.99 Billion

total Visitor Spending 5.4 Billion 5.23 Billion

Hotel Pipeline Hotel Performance

Visitation Numbers

occupancy ADR RevPAR

UNdER CONSTRUCTION

2016

CURRENT TOTAL INVENTORY

PLANNEd THROUGH 2023

year End 2015

year End 2014

Hyatt Regency

293

8,301

574

Source: 2017 Smith Travel Research, Inc. / STR Global, Ltd. trading as “STR”. Hotel performance from Smith Travel Research provided by Visit Baltimore.

Visitation and Visitor Spending Numbers from Longwoods Travel USA and Tourism Economics as provided by Visit Baltimore.


Presenting Sponsor

Leadership Sponsors

Community Sponsor

Friend Sponsors

this report is produced by Downtown partnership of Baltimore, Inc., which is solely responsible for its content. Data is collected by, or on behalf of, Downtown partnership from a variety of sources and covers activity within a one-mile radius of the intersection of pratt and light streets. Charts, graphs, maps, and images are the property of the partnership unless otherwise noted.

downtown Partnership of Baltimore is a 501(c)(6) non-profit incorporated in the State of Maryland. It has approximately 650 member firms throughout the mid-Atlantic region from dozens of industry sectors.

for more information about Downtown partnership, its reports, or to become a member, please visit www.GoDowntownBaltimore.com or call us at 410.244.1030.

You can also find Downtown partnership of Baltimore on twitter @DowntownBalt.

thanks to the Downtown partnership staff who worked to compile this data and produce the 2016 State of Downtown Report.

2016 st ate of downtown baltimore report · comprising just 3.8% of baltimore, downtown’s one...

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