The center cores of Baltimore and Washington, D.C., are located approximately 40 miles apart, and talk has renewed about the possibility of connecting the two metropolises by a Maglev rail system. The Baltimore/Washington region is generally considered the fourth largest in the country, boasting nearly 9 million people in the common area. But, when it comes time to rate the demographics, quality of life and overall attributes between the two, Baltimore assumes its secondary status in most comparisons, especially among some professionals in the retail real estate industry.
Yet, given the recent successes of retail ventures that have opened in Baltimore City within the past year, prospects for future developments that promise to reinvigorate oft-neglected sections of the city and planned expansions of other mixed-use projects, Baltimore is currently enjoying a “charmed” life. The iconic advertising campaign for National Bohemian beer, which referred to Maryland as “The Land of Pleasant Living,” seems like an appropriate descriptor these days.
The project that still has Baltimoreans buzzing is The Shops at Canton Crossing, the 330,000-square-foot retail shopping center situated within the city’s east side that opened last fall, and could easily serve as a national model for successful brownsfield development. Abandoned warehouse buildings were replaced with a design from architect Brown Craig Turner that followed proven “Main Street” concepts, featuring abundant parking, easy accessibility, outstanding visibility and walkability. What followed was the second Target in Baltimore City (after Mondawmin Mall), Harris Teeter and an impressive array of complementary national retailers and local restaurants. BCP Investors, an entity comprised of 28 Walker Development and Chesapeake Real Estate Group, is now talking about the next expansion phase.
McHenry Row, developed by 28 Walker Development and designed by The Martin Architectural Group, has breathed new life into the southern portion of the city near Fort McHenry and the headquarters of Under Armour. The mixed-use project, also anchored by Harris Teeter, combines a residential and office element, with the latter recently capturing new companies relocating to Baltimore City proper, reversing a trend that has seen corporations fleeing for the suburbs.
Other important projects to keep an eye on in Baltimore City include:
• the re-invention program of Harborplace and The Gallery at Harborplace, now owned by New York-based Ashkenazy Acquisition Corp. The company is also working to makeover the Village of Cross Keys in north Baltimore.
• Chesapeake Real Estate Group is bringing BJ’s Warehouse Club to southeast Baltimore, on a site formerly occupied by a paint company.
• Caves Valley Partners announced plans for a $250 million mixed-use project situated near M & T Bank Stadium (home of the Baltimore Ravens), appropriately named The Stadium Square that aims to revitalize three city blocks, beginning with the demolition of several blighted commercial buildings. This same development company is in the throes of creating the $350 million, grocery-anchored Towson Row in Baltimore County.
• Hord Coplan Macht is the architect for Seawall Development Co.’s Main Street-style Remington project featuring a mixture of retail, office and apartment units, located on the site that includes a former auto body building. Seawall is also rumored to be taking over the delayed 25th Station retail project anchored by Walmart.
• the city of Baltimore, interested in reviving the Old Town Mall area positioned near the Jones Falls Expressway, recently solicited RFPs from developers interested in the site.
• the so-called “Superblock,” located on the city’s westside and fronting Lexington Street, is in the same boat after a plan suggested by Lexington Square Partners never generated traction.
• Lexington Market, the collection of more than 100 food vendors that draws visitors, businesspeople and residents, and a fixture in the city for more than two centuries — is receiving a $25 million facelift. The city is also behind a program to attract new vendors, more customers and to re-brand the entity.
• complementary retail is also on the drawing board for Harbor Point, the Beatty Development Group’s project, designed by EE&K, that represents one of the few remaining major development sites in the city. The new headquarters of Exelon Corp. is the headline tenant. Harbor East continues to be the place to be for Millennials and empty-nesters alike, as an extension of Baltimore complete with the hottest restaurants and retailers.
No Baltimore retail discussion would be complete without a reference to the number of new apartment projects underway and its effect on the retail environment. According to a report from The Downtown Partnership, “an annual average of 7,985 households represents the potential renters and buyers of new residential units in downtown Baltimore over the next five years.”
Does this trend translate to more retail opportunities for restaurants? Yes. For retail? Not necessarily. Young, upwardly mobile consumers residing in the city — particularly women — still prefer to jump in their cars and take the short drive to Nordstrom’s in Towson or The Mall in Columbia in Howard County, still one of the best venues in the country. Marshall’s, which recently backfilled the Filene’s Basement in the city, works because a strong daytime population of office workers shop there during lunch or after work.
— Tom Maddux, Principal, KLNB Retail. This article originally appeared in the July 2014 issue of Southeast Real Estate Business.