The first and second entries of this series on the future of Montgomery County’s office market examined how widespread telework will change the value of office space and explored various scenarios for future office demand. In this third and final part of the series, let’s dive further into what will be needed to convince office users to continue to rent physical space in Montgomery County as we enter an era in which employers can more readily work from home at substantially lower cost. The competitiveness of our more than 74 million square feet of office space is a significant factor contributing to the $1.8 billion in property taxes Montgomery County collects (from both commercial and residential properties), the largest … Continue reading
In part 1 of our Future of the Office Market series, we explored how the advent of widespread teleworking in response to COVID-19 may change the value companies place on having centralized office spaces. The reduced need to work from the office will change the amount of office space we need and the types of offices and office districts in which we work. To compound the problem, office vacancy was high in Montgomery County’s 72.5 million square feet of leasable office space and much of this space was poorly suited to modern needs. Media coverage of our 2015 Office Market Assessment prominently highlighted the challenge we face with ‘dying’ office parks. Media continues to focus on economic development challenges … Continue reading
The retail that helps define Montgomery County’s character is struggling. The necessary COVID-19 restrictions that reduce crowds will continue to challenge retail in Montgomery County even after the lockdown eases, but the county has policies and programs that could help landlords, retailers, employees and the customers they serve.
Montgomery County’s extensive retail sector with 40.6 million leasable square feet across 2,390 properties (Source: CoStar) serves a diverse population and is a key amenity for the County. In their 2017 Retail Trends Study, the Montgomery County Planning Department highlighted vibrant, small retail businesses and recommended that the County would “benefit from focusing on the development and support of these unique small businesses, as these businesses are market differentiators for the … Continue reading