Commercial real estate development companies and investors are reacting to softening conditions in the Northern Baltimore County commercial office sector in different ways. Representatives from Blue & Obrecht Realty, Greenberg Gibbons, MLR Partners, and St. John Properties explained their respective approaches and pivots – including downzoning, project retrofits and staying the course – to a Hunt Valley Business Forum.
Mark Renbaum, Bill Holzman, Eric Walter, and Paul Obrecht III
“In the past, commercial office space in Hunt Valley was considered its most important asset class, but recently, employment patterns have changed and there are relatively few new development projects underway,” said moderator David Karceski, Partner, Venable LLP. “Several projects are performing well, including the four-building Executive Plaza complex, while others are being transformed into new uses that can support retail, residential and even warehouse/industrial product.”
A prime example is Broadmead’s acquisition of a three-building, 220,000 square foot commercial office portfolio in Sparks, and its plan to convert the property into 80 independent living residences and amenities.
St. John Properties is moving full steam ahead with Hunt Valley Exchange – the 113,000 square foot, mixed-use project near York Road that the company is presently developing. Last summer, St. John also acquired North Park – a three-building, 300,000 square foot Class ‘A’ office portfolio in Hunt Valley.
The company completed a $2-million improvement strategy at North Park, including the upgrade of an existing deli, and remains bullish on the Northern Baltimore County commercial office, retail, and flex/office sector, said Bill Holzman, Senior Vice President, Retail Leasing.
“We still believe in the fundamentals of this sub-market to support commercial office product, and the robust amenities in and around Hunt Valley are a big part of this optimism,” Holzman said.
Further down York Road, MLR Partners Principal Mark Renbaum celebrated the leasing announcement bringing Barnes & Noble to Lutherville Station, the proposed transit-oriented development adjacent to Yorkridge Shopping Center.
The site of the former Timonium Mall was downzoned several years ago to support residential townhomes, but “now the development team is focused on attracting additional top-tier retail uses, as well as a commercial office component. We have been patient and we want to develop this project the right way,” Renbaum said.
Paul Obrecht III, Senior Vice President/Principal for Blue & Obrecht Realty, highlighted the continued movement towards residential zoning in areas considered prime spots for manufacturing and commercial office uses.
“The tide has shifted. Buildings are becoming obsolete and can no longer support its original use, and owners and investors are searching for new approaches to repurpose,” Obrecht said. “A critical component is working closely with local community groups to uncover solutions that work for different audiences and stakeholders.”
Mentioned in this article: Blue & Obrecht Realty, Greenberg Gibbons, MLR Partners, St. John Properties, Venable LLP.