Office Market Assessment Study
Office Market Assessment Report
Prepared for the Montgomery County Planning Department by Washington, DC-based Partners for
Economic Solution (PES), this in-depth study examines the changing regional office market and best
practices for next-generation office development. View the full report and infographic.
View the PowerPoint presentation from the June 25, 2015 Planning Board meeting.
The research highlights unprecedented challenges confronting the Washington, DC region’s office sector,
including high and rising vacancies, flat rents, and slow absorption of new and relet space.
- Still recovering from the Great Recession, the region has been hard hit by cuts in federal spending and leasing, and by shifts in the amount, type, and location of office space that tenants want.
- Most jobs created since 2010 have been in retailing, restaurants, and medical facilities instead of offices.
- Office tenants everywhere are reducing their square footage via new technologies, more efficient workspace designs, and practices such as telecommuting, hoteling and benching.
- The data show that Montgomery County office centers located in mixed-use developments with quality amenities, a sense of place and good transit connectivity are best positioned to compete. This trend is consistent with recommended land use strategies in recent County plans for White Flint, Bethesda, White Oak, and other communities.
- Single-use office developments without convenient transit or highway access are attracting fewer tenants.
- Future office development is likely to occur at a slower pace and concentrate in prime locations. Less attractive locations may not attain the level of office development and occupancy they experienced in the past.