Why rent when you can own? That?s the question H & H Rock Cos. is posing to local small and family-owned businesses with the recent opening of its Howard Business Park off Dorsey Road.
The 16-acre business park includes five industrial warehouse buildings that total 155,000 square feet. The total cost of the project was $15 million.
Instead of renting those properties to businesses, H & H Rock is taking a different approach to commercial real estate by allowing businesses to purchase and own space within the buildings.
Since the beginning of 2006, the price of commercial real estate in Howard County has been about $125 per square foot, according to information from the Maryland Department of Assessments and Taxation.
The approach, called “condominiumization,” benefits both buyer and seller, said Bradd M. Caplan, project manager for H & H Rock. The developer profits from the sale, while the business cuts rent costs that might eat into profits.
“A lot of people who look at the propertyare small-business owners or family-business owners,” Caplan said, standing in the business park?s driveway Tuesday. “Instead of throwing their money away by leasing, they?ll have a real capital asset.”
So far, two of five buildings have been sold, Caplan said. M and K Foods purchased a 10,000-square-foot building in March, and AC & R Insulation Co. Inc. in the past month purchased and moved into a 30,000-square-foot building.
AC & R Insulation is a family owned company that has been an insulation contractor for 100 years. It serves residential and commercial customers throughout the Baltimore and Washington area.
The company moved to its new location from the Beltsville area two weeks ago. President Ginny Cameron said the firm liked the location of the Howard Business Park along with its new facility.
When it comes to operating a business, owning your property is a smart move, Cameron said. “I?ve never rented before. … I don?t know why anybody would want to rent with the appreciation of the property around here.”
The business park sits close to routes 100, 95 and 295. Caplan said plans are in the works to expand Old Dorsey Road to four lanes and extend the roadway to routes 175 and 132. AC & R Insulation will benefit from the increased traffic, Cameron said, because the company will include a retail component at its new location.
Caplan said H & H Rock is working with potential buyers to fill the remaining three buildings. Two larger, possibly multi-tenant buildings and one smaller building have yet to be sold.
“This area is just ripe for growth and development,” Caplan said.
About H & H Rock Cos.
Real estate development
» Where: 6800 Deerpath Road, Suite 100; Elkridge, MD 21075
410-579-2442
