Free rent for a year as Baltimore Peninsula rolls out the red carpet for startups

CEO MaryAnne Gilmartin of MAG Partners, whose portfolio includes the Barclays Center and other New York City developments, said startups relocating to Baltimore Peninsula could tap into a year of free rent and a promise to handle all real estate concerns

Gilmartin’s announcement came Tuesday evening during remarks before several hundred attendees of UpSurge Baltimore’s first-ever annual meeting, held in the developing neighborhood south of I-95 below Downtown. Until a massive rebrand in late 2022, the area was known as Port Covington. 

The incentive program will be called the “Innovation Exclusive powered by UpSurge at Baltimore Peninsula,” Gilmartin told Technical.ly — a slight variation on what she announced onstage because, she said, it was only recently named.

“You bring me your company, I bring you your space,”Gilmartin told the audience. “Not a nickel out of your pocket. Full turnkey, plug and play.” 

Companies that make five-year commitments will have no rent for one of those years, Gilmartin said, getting office space without having to front costs for construction. There’s no industry focus for this program, she said, but companies have to show they have a viable business that will be able to keep up with payments after that first complementary year. 

MaryAnne Gilmartin, CEO of MAG Partners. (Sameer Rao/Technical.ly)

Cost per square foot varies depending on what kind of space the lessee wants, Gilmartin said, but she committed to offering rent at a fixed rate that wouldn’t change even if the property becomes more valuable. 

“That’s really important,” she told Technical.ly, “because if I said to you, ‘After two years, it goes to fair market value,’ that’s really scary, right?” 

With Under Armour’s planned development, ‘this space will never be more attractive’

Gilmartin’s firm has spearheaded Baltimore Peninsula development alongside Goldman Sachs Asset Management, MacFarlane Partners and Sagamore Ventures, with real estate firm Cushman & Wakefield operating as its exclusive leasing agent. 

The neighborhood’s entrepreneurial legacy started taking off in 2016, and withstood various hurdles, from multiple priority changes to controversy over its $660 million public financing. It now includes such hubs as Betamore, LaunchPort and City Garage. 

It’s also home to Under Armour, whose controversial founder and recently returned CEO Kevin Plank also heads Sagamore Ventures and plans to open the apparel giant’s expansive new headquarters in Baltimore Peninsula. Gilmartin said the activity is highly likely to make the area increasingly appealing. 

“This space will never be more attractive than before Kevin Plank opens his giant innovation lab called Under Armour,” she said. “The time is now. That building’s opening in December. I’m trying to make it easy for people who probably will get boxed out in a year.” 

The evening, which was emceed by UpSurge Baltimore CEO Kory Bailey, also included appearances from Johns Hopkins Technology Ventures Executive Director Christy Wyskiel and Greater Baltimore Committee CEO Mark Anthony Thomas. 

Most speakers highlighted initiatives like the EDA Tech Hubs bid as representative of the spirit of imagination and teamwork they find inherent to this city.

With the “Innovation Exclusive” office and rent program, Gilmartin said she seeks to create spaces that can lead to similarly impactful innovation and collaboration. The opportunity isn’t limited to UpSurge’s network, but she sees the organization as a major qualifier for the kinds of tenants she wants to help. 

“This community is already vetted because it’s part of UpSurge, and that’s enormous,” Gilmartin said. “For me, these are the people that I want to have at Baltimore Peninsula.”

For interested business and startup owners who want more information, Gilmartin made the process simple: Email her at mgilmartin@magpartners.com.