Leasing Activity: Where are the tenants going and what industries are the most active in Suburban Maryland?
1. 22%PROFESSIONAL AND BUSINESS SERVICES
SECTOR’S INCREASE IN LEASING
ACTIVITY FROM 2013
Total leasing activity gained some momentum in the third quarter after a slower
Q2, but the question remains, which industries and which submarkets are the most
active in this softer market?
THE MOST ACTIVE INDUSTRIES
The top contender so far this year has been the Professional and business services
sector, with a total of 760,744 square feet (sf) leased year-to-date. Notably, activity
by this sector has increased by 22 percent from this same time last year. Coming in
second, the government sector leased a total of 508,006 sf, compromised of major
renewals for departments like the Health and Human and the National Institute of
Child Health and Human Development. The finance, insurance and real estate (FIRE)
sector was the third most active with a total of 277,142 sf, but suffered a 54 percent
decline in leasing activity compared to the same period in 2013.
THE MOST ACTIVE SUBMARKETS
The Bethesda/Chevy Chase submarket leads the way with the highest amount of
total leasing activity so far in 2014. Tenants under 10,000 sf made up 24% of the
total leasing activity in this submarket, as larger tenants remain hesitant to make a
move. The largest transaction seen so far was the renewal of Microsoft
Corporation at 5404 Wisconsin Avenue for 133,000 sf. Despite the Food and
Drug Administration’s (FDA) consolidations, the I-270/ Rockville corridor leased a
total of 434,532 sf year-to-date. Some significant leases were CNSI’s new lease at
2277 Research Boulevard for 118,000 sf and FDA’s renewal at 2094 Gaither Road
for 53,512 sf. To round out the top three active submarkets, Pike Corridor came
in third with 285,783 sf of space leased. The most notable transaction in this
market has been Bank of America Merrill Lynch’s 40,000 sf lease at Pike and Rose.
SFTOTAL AMOUNT OF LEASING
ACTIVITY IN BETHESDA/CHEVY CHASE
2014 Through Q3 vs. 2013 Through Q3 Leasing
Landscape of Top Leasing Industries
2. FOR MORE INFORMATION, PLEASE CONTACT:
(202) 739 0367
This message and any attachments are solely for the intended recipient and contain confidential or privileged information. If you are not the intended recipient,
any disclosure, copying, use, or distribution of the information included in this message and any attachments is prohibited. If you have received this
communication in error, please notify us by reply e-mail and immediately and permanently delete this message and any attachments.