There are leases that fill an open space. Then there are leases that fill a higher need.
The decision by North American Trade Schools to relocate to the Northwest Plaza Shopping Center in Baltimore managed to do both. The school will not only occupy space left vacant by the departure of a Kmart department store, it will bring services to a part of the city in need of educational opportunities.
That double bottom line is why the lease is being recognized for a CoStar Impact Award, as judged by real estate professionals familiar with the market.
The move proved propitious for the owner of the property, Northwest Plaza Associates. The landlord had previously filled nearly half of the former Kmart site with a Roses discount store. But finding a tenant for the remaining 55,000 square feet of the cavernous former retail space proved challenging, particularly because Roses had co-tenancy rights.
North American Trade Schools fit the bill. It plans to open for classes this summer, offering construction training and other programs.
"The move from Baltimore County to Baltimore City brings educational services closer to the population where needed and likely to benefit the greatest. Also, any net, new leasing in Baltimore should be recognized as the city continues to lose business to the suburbs," wrote Terri Harrington, managing principal with Harrington Commercial Real Estate.
About the Deal: The agreement for 55,000 square feet was signed in August 2023, representing the largest lease signed in Baltimore City in 2023.
What the Judges Said: "The education classes that NATS will be offering in various trades will increase the workforce abilities within the community significantly impacting families in Northwest Baltimore for years to come," wrote Lacey Johansson, assistant vice president for leasing at St. John Properties.
They Made It Happen: Patricia Palumbo, director of leasing and the broker of record, Paul Weinberg, leasing associate, Devin Gerhart, director of asset management, and Colby Stiles, associate director of property management, all representing the landlord for Klein Enterprises. MacKenzie Commercial Real Estate Services senior vice presidents Michael Ruocco and Andrew Meeder served as tenant representatives.
Senior market manager Nina Thilert contributed.