Lee & Associates | Maryland brokers lease with McConnell Development, Inc. in 263,500 square foot industrial/warehouse building which is nearing completion in Cecil County, Maryland
(Image credit: Seth Leader with Leader Images)
Electric bikes manufacturer and distributor Metalrays, LLC has signed a lease with McConnell Development, Inc. for 109,192 square feet of space within 1003 Konica Drive, a single-story Class ‘A’ building containing 263,000 square feet of warehouse/industrial and office space and located in the Elkton section of Cecil County, Maryland. This represents the initial lease for the speculative development situated within the Upper Chesapeake Business Park which is nearing completion. MetalRays expects to take occupancy of the space, and employ approximately 20 workers, this summer. Ned Brady and Eric Skogmo of Lee & Associates | Maryland represented the tenant and Michael McConnell of McConnell Development represented the landlord in this transaction.
MetalRays intends to utilize the building for the storage and United States distribution of its full-line of electric bike products. This requirement is a real estate expansion for the China-based company, which currently operates a small warehouse space nearby in Delaware.
According to Lee & Associates’ first quarter real estate report, more than two million square feet of industrial/warehouse space was leased in the greater Baltimore metropolitan region in the first quarter of 2023. The fully-integrated commercial real estate brokerage and management firm headquartered in Columbia also reports an overall vacancy rate of 5.3%, with more than 14 million square feet of space currently under construction.
1003 Konica Drive is equipped with 36-foot ceiling heights, 27 loading docks and two drive-in docks and features parking for 150 vehicles. The site is directly adjacent to US Route 40, less than five miles from Interstate 95, less than 20 miles from Wilmington, 50 miles from Philadelphia and less than 60 miles from Baltimore. This is the second of two buildings developed by McConnell Development in Upper Chesapeake Business Park, a Wilmington-based commercial real estate development company which has developed more than two million square feet of industrial space, including 550,000 square feet in Maryland. The group delivered 1002 Konica Drive, a 267,000 square foot warehouse/distribution building, in 2021.
“MetalRays was attracted to this building’s access to three major seaports in Baltimore, Wilmington and Philadelphia, as well as its Mid-Atlantic positioning that places it within a one-day truck drive to approximately 50 percent of the United States population, representing one-third of the nation’s effective buying power,” stated Ned Brady of Lee & Associates. “The open-space layout and high ceiling structure will enable MetalRays to easily execute its real estate configuration for logistics, warehouse and light assembly. A small office component will be used for administrative and sales functions. The buildings’ immediate availability was a significant factor in the company’s decision.”
“With this lease, less than 60% of the building remains available for lease and we are extremely confident about our ability to reach full occupancy in the near future based upon current leasing interest and activity,” explained Michael McConnell, Head of Industrial Sales and Leasing for McConnell Development. “Adding to our optimism is the high volume of leasing occurring in this submarket, coupled with the highly-trained labor force in the immediate region that is needed to staff new real estate requirements.”
“We perceive a long and extended runway for the warehouse/industrial sector, both nationally and regionally, despite some reports that leasing is beginning to soften,” added Eric Skogmo. “Consumer buying habits were forever changed by the healthcare crisis, and it remains critical for retailers and product manufacturers to lease space near major population centers to facilitate delivery.”
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada. Lee & Associates provides superior market intelligence in office, industrial, retail, investment and appraisal to meet the specialized needs of our clients. Visit https://www.lee-associates.com/offices/office/?id=1591
