Matan Cos. Lands New Tenant for DC-Area Project
Upon completion, the development will include 1.4 million square feet of lab, manufacturing and office space.
Matan Cos. has executed a long-term lease agreement for 111,368 square feet at 8484 Progress Drive, in its Riverside Research Park, in Frederick, Md.
A spokesperson for Tyler Duncan Real Estate identified the tenant as JLG Industries Inc., a manufacturer of high-level access equipment, such as boom lifts and telescopic handlers, headquartered in McConnellsburg, Pa.
Matan did not respond to Commercial Property Executive’s request for additional information, but its announcement stated that 280,000 square feet of space remain available at 8484 Progress Drive and the adjoining 8480 Progress Drive. Both buildings feature high-bay space and reportedly are suitable for a variety of office, R&D, and other technology-focused users.
The 177-acre R&D park is immediately south of the Monocacy River and already home to Charles River Laboratories and the National Cancer Institute’s 332,000-square-foot Frederick National Laboratory Facility. Matan’s vision for the park encompasses additional facilities for the federal government, educational institutions, an incubator and private-sector companies. The park’s green space includes water features, multiple gazebos and more than 5 miles of walking trails.
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Matan reported that Riverside Research Park is approved and ready to build with 1.4 million square feet of planned lab, manufacturing and office space.
Matan Cos. was represented in-house by Leasing Director Brad Benna, and the tenant was represented by Tim Shanklin of Tyler Duncan Real Estate.
Public and private entities expand
The life science sector in Maryland’s I-270 corridor also known as the BioHealth Capital Region totals nearly 12.5 million square feet of lab space, driven in large part proximity to such federal agencies as the National Institutes of Health and the Food and Drug Administration, according to a brand-new report from Cushman & Wakefield.
On the private-sector side, AstraZeneca is a big player, having expanded its presence by almost 300,000 square feet last year and with plans for further investments.
Although overall vacancy rose to 14.0 percent, Cushman & Wakefield reports that “suburban Maryland’s supply is not as overbuilt as other top markets, given the overall inventory and size.”
Rents for R&D space in Montgomery County average between $40 and $45 per square foot, triple net. a level that Cushman & Wakefield anticipates will be stable as current space is absorbed. Fortunately, no new space is in the pipeline.
Last September, a joint venture of Matan Co., Rockefeller Group, Mitsubishi Estate New York, Chuo Nittochi and Taisei USA LLC began construction on the first phase of Port 460 Logistics Center in Suffolk, Va., about 20 miles from the Port of Virginia. When it delivers, the campus will total about 5 million square feet.
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