Once Again, Silver Spring Leads the Region with the Lowest Vacancy
By Silver Springer • Jan 23rd, 2007 • Category: Business and Economic Development, Real Estate
For the 3rd quarter of 2006 the office vacancy stayed low at 4.10% according to the CB Richard Ellis market report. Out of all primary submarkets in the D.C. area, the downtown area of Silver Spring continued the highest occupancy rate and a dearth of new deliveries. Even lower was the North Silver Spring/Route 29 corridor at 2.10%. Average asking lease rates were $24.80 a sq\ft for the downtown area and $23.29 a sq\ft for the North Silver Spring/Route 29 corridor. Office continues to outperform residential and retail.
As predicted the vacancy rate is slowly but surely inching back up from a low of 3.4% in the 4th quarter of 2005, with no new deliveries since 8515 Georgia Avenue was brought to the market. There is a shortage of new Class A office space.
4th quarter of 2006 report
The 4th quarter report already available shows a 4.20% vacancy for the Silver Spring downtown area and 2.70% for the North Silver Spring/Route 29 corridor. Montgomery County lead all other counties in the region with a vacancy of 7.40%, .4% lower than the last quarter.
Silver Spring continues to loose its’ commercial core
A 141,972 sq\ft existing office building at 8728 Colesville road was taken out of inventory for the Silver Spring market. The building is being converted into a Hilton/Hampton Inn/Homewood Suites. Lucrative parcels close to the metro station are being planned for residential construction. The private development of Silver Spring Transit Center, by Foulger Pratt, plans to inundate the commercial core of Silver Spring with two residential buildings. What is considered the most important piece of real-estate in the CBD will be occupied by residential apartments. A new proposal by Washington Properties is planned for a 16 story apartment building in the Ripley Street District directly opposite of Kettler’s Midtown Silver Spring condominium project.
Potential tenants looking to lease space will find it difficult. As the market holds tight the only available space is from an aged stock of Class B and C buildings and large blocks are unavailable.
In the pipeline
The good news is that proposals like City Place Tower, 8711 Georgia Avenue, Studio Plaza project and now the speculative additional office space of the Silver Place project plan to aid the market by bringing new Class A office space to the CBD. Unfortunately ground breakings would be at least two to three years away.
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This great news means we should build more space for businesses right?
That’s what the man\gal is trying to say.
Make all the business space into condo and apartment space. Bring in more restaurants and entertainment options. Create a device that causes the sun to shine on Silver Spring every single day, making it Long Beach by the D.C.
There, problem solved.
Make into yuppie haven! Throw out the poor and middle class people, displace the long time independent businesses, raise housing prices, bring in every national chain possible. There…that should get the discussion going
I am not taking the bait on this one. Nope.
bwa-ha-ha…my evil plan worked.
I am all for more office space in downtown Silver Spring… that means more jobs that I can potentially get and retain my short commute. Unfortunately so many interesting jobs are in (UUUGGGHHHH) Virginia these days.
The Office Building on Colesville was not Class A. It was basically obsolete and sat mostly vacant for 10- 15 years. Taking it out of the Office inventory and back into productive use is a good thing.
Sligo,
What do you mean that there are so many “interesting jobs” in Northern Virginia?
Careful, there is a lunatic on this board who will call you a Confederate Maryland-Hater Who Loves General Lee and Virginia. YeeeeeeeHAW!
hahahaha!
Twoste
said…
Make all the business space into condo and apartment space. Bring in more restaurants and entertainment options. Create a device that causes the sun to shine on Silver Spring every single day, making it Long Beach by the D.C.
There, problem solved.
1/23/2007 03:24:42 PM
RE: STFU You Maryland hating Virginia loving jackass. You just don’t want any parts of the Maryland suburbs to Develope rapidly like Northern Virginia.
Anonymous said…
Make into yuppie haven! Throw out the poor and middle class people, displace the long time independent businesses, raise housing prices, bring in every national chain possible. There…that should get the discussion going
1/23/2007 04:30:00 PM
RE: While your at it why don’t they tear down EVERY BUILDING AND HIGHWAY in Maryland while Virginia welcome ALL of the Pissed Off Marylanders with open Arms and High Paying Employment.
Anonymous said…
Make into yuppie haven! Throw out the poor and middle class people, displace the long time independent businesses, raise housing prices, bring in every national chain possible. There…that should get the discussion going
1/23/2007 04:30:00 PM
ihateyuppies
said…
I am not taking the bait on this one. Nope.
1/23/2007 07:33:34 PM
RE: Of course not Stuck up Virginian.
ihateyuppies
said…
Sligo,
What do you mean that there are so many “interesting jobs” in Northern Virginia?
Careful, there is a lunatic on this board who will call you a Confederate Maryland-Hater Who Loves General Lee and Virginia. YeeeeeeeHAW!
1/24/2007 11:21:15 AM
RE: Lets leave your psycho trailor trash dysfunctional family that struck oil in their yard out of this.
I’ve never been to Northern Virginia.
You’ve NEVER been to Northern Virginia? No flights out of National Airport? Not even an accidental trip over the river after a wrong turn?