Derwood Industrial Park
Derwood Circle, Rockville, MD, 20850, US
17,694 m²
Description
On behalf of the Owner, Jones Lang LaSalle Americas, Inc. ("JLL") has been retained as the exclusive sales representative for the BWI Telegraph Shallow-Bay Portfolio (the "Portfolio")—a collection of four (4) industrial assets across two (2) distinct commercial parks located strategically within the BWI Corridor. The fully-leased, 181,079 square foot, light industrial portfolio offers investors near-term upside within one of the nation’s strongest, supply-constrained logistics corridors.
The Baltimore leasing market continues to demonstrate exceptional fundamentals, with 23.7 MSF of square footage leased since 2024. Baltimore has a robust pipeline of 60 active tenant requirements totaling 8.0 - 9.0 MSF market-wide and market rents have surged over 98.4% since 2020, underscoring the robust demand dynamics in the MSA.
The BWI Telegraph Shallow-Bay Portfolio is 100% leased with 2.74 years of Weighted Average Lease Term (WALT) remaining with the opportunity for substantial value-creation potential in the near term due to 19% below market rents. This offering is anchored by Lockheed Martin Corporation, which maintains a strong investment-grade credit profile (S&P: A-) and occupies 68% of the portfolio with 3.25 years of WALT. The Portfolio benefits from a highly connected Mid-Atlantic location with access to approximately 45% of the US population within a one-day drive, proximity to regional highways, BWI and Reagan National airports, and the Port of Baltimore - offering true multi-modal accessibility to a strong workforce and highly educated demographic pool.
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Attributes
Building area gross
17,049 m²
Occupancy
100%
Year built
2006
Land area gross
2 m²
BWI Telegraph Shallow-Bay Portfolio (2 Properties)
BWI Telegraph Shallow-Bay Portfolio (2 Properties)
Media
Investment Highlights
STRONG IN-PLACE CASH FLOW WITH EMBEDDED UPSIDE POTENTIAL
- 100% leased to 6 tenants with 2.74 years of WALT
- Near-term mark-to-market potential with the weighted average in-place rents approximately 18% below market.
TOP TIER LOGISTICS LOCATION ALONG BWI CORRIDOR
- Highly connected Mid-Atlantic location with access to approximately 45% of the US population within a 1-day drive.
- Unmatched access to dense population, with a strong workforce and highly educated demographic pool.
- The Portfolio benefits from proximity to a cluster of regional highways, including I-95 and the Baltimore Beltway, Baltimore/Washington International Airport, Dulles International Airport, Reagan National Airport, and the Port of Baltimore, offering true multi-modal accessibility.
ENTRENCHED ANCHOR TENANCY BACKED BY STABLE GOVERNMENT CONTRACTS
- Lockheed Martin Corporation maintains a strong, investment-grade credit profile (S&P: A-), occupying 68% of the Portfolio with 3.25 years of term remaining across 3 buildings.
- Lockheed Martin Corporation generates significant revenues from contracts with government agencies and benefits from proximity to Washington, DC, Joint Base Andrews, and Fort Meade (National Security Agency and home of the U.S. Cyber Command).
BALTIMORE INDUSTRIAL MARKET POISED FOR GROWTH
- The Baltimore industrial market remains strong with Class B occupancy rate 92.4%. An additional 781,500 SF is expected to deliver in the BWI Corridor during Q3 and Q4 of 2026, reinforcing the submarket's role as the region's primary growth engine.
- Among the Baltimore submarkets, BWI/Anne Arundel has the 2nd highest direct market rents at an average of $13.45, which is 20% higher than the average for the entire market.
