03 Nov 3Q Market Reports
The end of the quarter is always a reflective time for our team. We take a look back on market activity, examine completed transactions, and look to the future.
Montgomery County remains open for business and we are seeing efforts leading to economic results. Creating a viable, business-friendly environment starts with ease of transportation. This quarter, we examined more closely a few transportation projects and the impact they could have on business. Access the report here.
Just this week, Corridor Cities Transitway (CCT)—the transportation project that is the county’s second highest priority—had its funding delayed by Governor Hogan. Delaying the project will require additional investments because preliminary engineering may have to be redone by the time Hogan is proposing to fund the project again in 2023.
The 16-mile CCT will provide faster, more direct transportation between residential and major employment areas; reduce congestion by up to 36,000 cars per day; support economic development consistent with local master plans; and reduce air pollution levels. The first phase of the project would connect the Shady Grove Metro station with residential neighborhoods, the Universities at Shady Grove and major employers such as Adventist Healthcare in the Gaithersburg and Rockville areas. The state and county have already provided $37 million to fund engineering and design for the project.
The CCT will connect the thriving I-270 market while generating thousands of jobs for the county.
Read more about the County’s transportation opportunities here.
What else is going on in the County? Read what our team has to say:
Progress is being made on the approval of the Bethesda Master Plan. In recent hearings with the County Council, many property owners supported the broad framework of the plan, which will allow greater building heights in parts of the community, among other changes.
The update of the master plan is designed to guide the development of downtown Bethesda for the next 20 years has been two years in the making. Exciting time for Bethesda’s future.
Click here to read the market report.
N. Bethesda Market
Federal Government agencies completed their renewals which triggered a spike in market activity in N. Bethesda. Health and Human Services renewed 155,000 sf at 12501 Ardennes Avenue and the Nuclear Regulatory Commission renewed 348,000 sf at 11545 Rockville Pike where they have been for the last two decades.
Read the report here.
Over the past 5 years, the market has been active, and is one that shows real value, and future development promise. With vacancy rates tracking similar to the other Montgomery County markets, asking rent is lower in Germantown/Gaithersburg and it remains a tenant’s market with lots of options and landlord concessions.
Click here to read the report.
Abundant vacancy and low rental rates has been the message all year long, and this quarter is no different. Although this message might not be ‘great’ news for landlords, the opportunity is ripe for tenants looking to relocate and expand their operations. Challenges such as ease of access to public transportation and less congested roads are being addressed by the State and the County, and whereas improvements will not be happening overnight, landlords are offering concessions to prospective tenants to accommodate the short-term challenges faced by the region.
Click here to read the report .
I-270 Lab Market
The lab market took a moment to collect itself with a relatively flat 3rd quarter of 2016. That is, by comparison to the hyper-active market we experienced the 3 quarters prior. The transactions amounted to a handful with a few smaller new leases and a couple of larger renewals. Both U.S. Pharmacopiea (25,000 sf) and Tetracore (40,000 sf) renewed their leases. Additionally, there was some new activity at two of the private lab incubators/accelerators in the I-270 Corridor, which is typically a good leading signal for growth in the market.
Click here to read the report.