Trammell Crow Starts Work at Germantown Site

Trammell Crow has broken ground on a six-story office building in a Germantown office park, a sign developers are continuing to chase rent dollars further into the suburbs.

The aptly named Building III, is the third office structure to rise in the Milestone Business Park, a 44-acre corporate campus located off I-270. The first two buildings, Building I and II, are fully leased. Tenants in these buildings include the technology companies Affiliated Computer Services and JDS Uniphase Corporation and the local weather data-provider Weatherbug, according to CB Richard Ellis, the leasing agent and parent company of Trammell Crow.

While large blocks of space in Germantown remained available following the years after the tech bubble burst, the amount of vacant space has moderated to about 349,000 square feet, or 12.9 percent, according to third-quarter numbers provided by the CoStar Group, a real estate reserch firm.

While a 10 percent vacancy rate is considered an equilibrium market, Reid Townsend, a senior vice president of Trammell Crow said in a statement that Germantown is reaching a "tipping point in its commercial growth and development." That growth is driven by "the rise in gas prices and a commute weary workforce," Townsend said.

Trammell Crow will develop Building III on behalf of Multi-Employer Property Trust, a pension fund that manages $6.8 billion worth of assets. The trust's portfolio consists of 170 properties in 24 major metropolitan markets around the country. The trust bought the Milestone Business Park in 2005.

The new building will be certified "silver" in accordance with the U.S. Green Building Council's Leadership in Energy and Environmental Design standards.
-- Alejandro Lazo

By Mike Shepard  |  October 15, 2007; 1:51 PM ET
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