2016 st ate of downtown baltimore report · comprising just 3.8% of baltimore, downtown’s one...
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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
3 San francisco 26,616
4 philadelphia 21,950
5 Seattle 18,729
6 Boston 14,760
7 washington, DC 14,112
8 Denver 10,773
9 San Diego 9,759
10 Miami 8,640
11 los Angeles 8,328
12 Minneapolis 7,893
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
23 San Antonio 1,095
24 phoenix 1,047
25 Detroit 969
1 new York 1,113,471
2 Chicago 376,788
3 washington, DC 330,061
4 Boston 298,976
5 philadelphia 265,354
6 Seattle 215,710
7 Houston 197,312
8 Minneapolis 170,044
9 San francisco 163,296
10 los Angeles 162,682
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
18 San Antonio 77,850
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.
GoDowntownBaltimore.com
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.
GoDowntownBaltimore.com
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.
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