Spotlight on College Park, MD
The city of College Park, located in Prince George’s County inside the Capital Beltway (I-495) and only minutes from the nation’s capital, is best known as the site of the University of Maryland. Home to more than 30,400 residents, the city is now ranked among the Top 50 Small College Towns in the United States. Additionally, the city benefits from the strong economy of the Washington, D.C. MSA with the current average household income of $75,892 expected to increase to more than $85,000 within the next five years. Major employers in College Park include the NOAA Center for Weather and Climate Prediction, the Food & Drug Administration, the National Archives II, and the American Center for Physics. College Park’s central location between Washington, D.C., Baltimore, and Annapolis offers multiple transportation options with its proximity to Interstates 495 and 95 and the Baltimore-Washington Parkway. Immediate rail access provides a convenient commute for residents to the nearby employment centers in the larger population hubs, as well as access to the many historical and cultural attractions and shopping destinations in the area. The recent approval of the Metrorail Purple Line is expected to have a major impact on construction and urbanization in the College Park community. The six-year project connecting between Bethesda and New Carrollton will include five stops on and around the University campus.
With over 15,000 employers, the University of Maryland at College Park is the prime economic driver of the area. Founded in 1856, the university is the flagship institution of the University System of Maryland with an enrollment of more than 37,000 students, over 100 undergraduate majors, and 120 graduate programs. Considered a “Public Ivy” institution, the university specializes in research, innovation, and entrepreneurship. Last year it was ranked 19th among national public universities by U.S. News and World Report. The University of Maryland benefits from research partnerships with Federal government agencies including the National Institutes of Health, NASA, the National Institutes of Standards and Technology, and the Department of Homeland Security.
As the University has expanded and placed additional demands on the community, U.S. Route 1, the main commercial corridor of College Park, has been the focus of significant revitalization. The Route 1 Sector Plan designed to transform the street into a pedestrian-and-bicycle-friendly town center environment has led to numerous projects over the last several years that have added to this vision for both the university and the community. Developers continue with major projects in this corridor, such as the Landmark development, formerly known as the Book Exchange, which brought to the area the first small format Target Express store as part of an 829 bed expansion of student housing. The Hotel at University of Maryland by Southern Management is a $150 million undertaking of a four-star luxury hotel and conference facility with 300 rooms, 57,000 square feet of restaurant and retail space, and a parking garage, slated for delivery in 2017. Under construction is the Riverdale Park Station bringing the first Whole Foods Grocery store to Prince George’s County with an additional 100,000 square of feet of retail and 22,000 square feet of office space.
This report features six shopping centers in the Northern Prince George’s County submarket in and around College Park. The Suburban County submarket has seen asking rents rise over the past 12 months with a total increase of 3.7%. Average allowances offered to new tenants are $13.90 per square foot for improvements and 4.2 months of free rent. Asking rents for anchor tenants range from a low of $10.19 per square foot to a high of $23.13, with an average of $16.93. Inline asking rates per square foot range from a low of $19.00 per square foot to a high of $37.11, with an average of $27.93.