PS Business Parks Inc. (PSB), a real estate investment trust (REIT), recently acquired Parklawn Business Park, a 232,000 square feet, multi-tenant office and industrial business park in Rockville, Maryland, for $23.4 million in cash.
Parklawn Business Park is currently 70.6% leased and accommodates multiple tenants. The property includes three office buildings and two flex buildings. With the acquisition, PS Business Parks’ Maryland portfolio increased to approximately 2.4 million square feet of office and flex space.
PS Business Parks owns, acquires, develops, and operates commercial real estate properties across eight states in the U.S. Its property portfolio includes low-rise suburban multi-tenant offices, business parks, and industrial and flex assets. Located mostly in high-population markets, flex properties are a combination of warehouse and office space and can be easily configured to suit a variety of uses.
The warehouse component of the flex space is primarily used for purposes such as light manufacturing and assembly, storage and warehousing, showroom, laboratory, distribution and research and development activities. The office component of the flex space is complementary to the warehouse component and enables businesses to accommodate management and production staff in the same facility.
Since going public in 1998, PS Business Parks’ portfolio has grown from 5 million square feet to 20.7 million square feet of wholly owned properties as of June 18, 2010.
Over the years, the company has focused on investing and owning real estate in diversified markets, thereby tapping multiple industry concentrations and minimizing the risks associated with the economic down cycles. In addition, the ability of the company’s properties to accommodate a wide variety of uses with minimal reconfiguration has enabled it to keep its capital cost relatively low.
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