Silver Spring Office Vacancy Holds Steady
By Silver Springer • May 21st, 2008 • Category: Real Estate
While developers are making high risk investments by plopping office buildings in continually high vacancy submarkets in the region, Silver Spring’s continues to be healthy and the direct vacancy actually edged down in the 1st quarter of 2008.
The direct vacancy fell from 5.7% in the fourth quarter of 2007 to 5.2% in the 1st quarter of 2008 according to Transwestern’s Commercial Services report. The 0.5% difference is partly due to a positive absorption of 35,000 square feet.
Northern Silver Spring/Route 29 Corridor continues its low vacancy trend, quarter after quarter with only 3.7% available in the 1st quarter of 2008. The submarket should only become increasingly desirable in the future because of activity from the FDA, Washington Adventist  and Montgomery County, with their latest and largest incubation center.
The report noted that, “With numerous projects currently in the pipeline and modest demand, for the next 24 months new spec development would appear warranted only for very special projects at superior locations.”
Direct and sublet vacancies in the 1st quarter 2008 for selected submarkets with over 5 million square feet,
- Silver Spring: Direct, 5.2%; Sublet, 6.0%
- Bethesda/Chevy Chase: Direct, 4.9%; Sublet, 6.5%
- Beltsville/College Park: Direct, 15.8%; Sublet, 16.4%
- 28 South/Chantily: Direct, 18.4%; Sublet, 19.8%
- Loudon County: Direct, 15.9%; Sublet, 16.9%
- Frederick County: Direct, 9.8%; Sublet, 10.1%
- Eisenhower Ave/I-395: Direct, 4.7%; Sublet, 5.2%
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I’m only interested in that vacant refurb building across from Discovery (Walsh Motor Co). Does anyone have any idea what’s potentially going in there?
Looks like it could be a Dunkin Donuts with room for more retail.
Silver Springer… is that for real the news about Dunkin Donuts moving in, or just a wish? I’ve been hoping one would come to downtown Silver Spring for so long, their coffee is sooo much better than Starbucks.
I think I heard it from the Regional Center.
I miss the Carolina Kitchen that used to be there. A lot. Silver Spring lost some incredible German chocolate cake when that building burned.
Nice building. And a vacancy of 5% is much better than many of the other commercial spaces around the area; some of them are up to 18-20%, with no hope of letting out in the near future!
And like Lindemann says, Carolina kitchen used to sell superb German chocolate cake!