Overview
Cushman & Wakefield’s Mid-Atlantic Industrial Advisory Group is pleased to present exclusively for sale the DC Beltway Small Bay Portfolio, a three-building shallow bay warehouse portfolio located directly along I-495 (Capital Beltway) in Prince George’s County within the broader Washington DC Metro Region. The portfolio totals 112,454 SF and is 90% leased to 15 tenants with 1.7 years of weighted average lease term (WALT) and in-place rents 20% below market.
The portfolio is being offered at a significant discount to replacement cost in one of the most
supply constrained markets in the country. Tenant options in this size range are extremely
limited, which will drive continued outperformance in the shallow bay segment. The portfolio’s location along I-495 allows tenants direct access to the greater Washington DC Metro region. The DC Beltway Small Bay Portfolio provides the opportunity to acquire functional last-mile warehouse product with an irreplaceable location, low basis, strong tenured tenants, and significant NOI growth.
Investment Highlights
Irreplaceable DC Metro Location & Access
- Portfolio is located directly adjacent to I-495 (Capital Beltway) at Pennsylvania Avenue (Rte. 4)
- Rte. 4 intersection provides quick and easy access into Northern Virginia via Woodrow Wilson Bridge (I-495)
Immediate Mark To Market Opportunity
- 15 tenants with 1.7 years WALT & 20% below market rents
- All 4 vacant suites are fresh vacancies and already have leasing interest
- Less than 10% office finish across the three building portfolio
Shallow Bay Product Outperforming
- DC Metro vacancy rate for small bay product sits at 4.3% outperforming the market by 300 basis points
- Market rent for small bay assets in Prince George’s County provides relative value versus elevated rents in NOVA and Montgomery County
- Replacement cost for new shallow bay product is $325 - $350 PSF due to the costs to demise and separately meter spaces. New competitive product does not get built, which will continue to put upward pressure on rents
Regional Demographics & Data Center Surge Generate Sustained Industrial Demand
- Explosive data center growth drives industrial demand - 2.8M SF leased by data center vendors across the Mid-Atlantic in 2025, nearly 3x the 1.0M SF leased in 2022 DC Metro offers industrial tenants & service businesses the best consumer demographics in the country (10.2 million consumers and 7 of the top 20 wealthiest US Counties within a 1 hour drive)
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