Office

office
Through
helped
Success
shutdow
office m
construc
weak le
In sharp
enjoying
and ten
office d
Employm
regions
percent
from 5.3
the sam
than 11,
resurgen
unempl

space monito
market overvie
h the long recessio
stabilize employm
sive rounds of fed
wns have reversed
markets dependen
ction will only par
easing activity and
p contrast to its slu
g surging office re
nant demand for t
demand
ment trends have
s average 2nd qu
t one year ago. M
3 percent to 4.5 p
me period, the num
,000 residents left
nt hiringis driving
oyment rate is un
tre
or: april-june 20
ew
on and early phas
ment and office d
eral spending cut
d this regional eco
nt on federal con
rtly offset the grow
d scheduled new
ggish suburban n
ents and occupan
transit-accessible
e a sizeable impac
arter unemploym
Montgomery Coun
ercent over the y
mber of employed
the labor force, i
g down the Coun
nlikely to reinvigora
ends
014
ses of the recove
demand in the Wa
ts, space reductio
onomic advantag
tract dollars, jobs
wth in surplus offic
federal spending
eighboring marke
ncies, powered b
prime urban spa
ct on the office le
ment rate fell to 4.9
ntys average qua
year. This is not nec
d County resident
ndicating that a s
ntys jobless rate. I
ate office deman
Th
d
sheet
Sourc
Surve
ry, the federal go
ashington, D.C. re
ons and governm
ge, especially in s
, and leases. Slow
e space over the
g cuts further inhib
ets, Washington, D
y private sector jo
ce.
easing environme
9 percent, compa
arterly unemploym
cessarily a positiv
ts fell by nearly 3,4
shrinking labor po
n this case, a dec
nd.
he federal secto
demand accele
t INDICATOR
ces: Labor market d
ey, and Quarterly Ce
overnment
egion.
ent
uburban
wing
e next year, as
bit absorption.
D.C. is
ob growth
nt. The
ared to 5.5
ment rate fell
e sign. Over
400 and more
oolnot
clining

or continues to b
rates in Washing
RS OF MONTGO
ata: U.S. Bureau of L
ensus of Earnings an
MONTGOM
Economic Ind
RESIDENTLAB
EMPLOYED C
UNEMPLOYM
Office Market
AVERAGE REN
VACANCY RA
AVAILABILITY
NETABSORPT
DELIVERIES
Buildings
Square Fee
UNDER CONS
Buildings
Square Fee
INVENTORY
Buildings
Square Fee
Vacant Sq
be a drag on su
gton, D.C.
OMERY COUNT
Labor Statistics, Loc
nd Wages data as o
ERY COUNTY, MAR
dicators 20
BOR FORCE
COUNTY RESIDENTS
MENTRATE
tSnapshot 20
NT
ATE
RATE
TION

et
STRUCTION

et

et 7
quare Feet
uburban office m
TY PROGRESS
cal Area Unemploym
of August, 2014. Offi
RYLAND
013 2Q 2014 2Q
541,900 530,7
509,415 506,7
5.3% 4
013 2Q 2014 2Q
$28.09 $27
13.7% 14
17.9% 18
38,123 335,9
1
197,720 600,9
5
1,053,566 565,0
1,516 1,5
72,482,471 72,967,4
9,931,144 10,805,3
markets in the re
ment Statistics, Curre
ice market data: Co
netchange
762 (11,138)
790 (2,625)
4.5% -0.8%
netchange
7.84 -$0.25
4.8% 1.1%
8.9% 1.0%
971 297,848
2 1
998 403,278
6 1
048 (488,518)
514 (2)
420 484,949
315 874,171
egion, but
2014 2Q
ent Employment
oStar, 7/22/ 2014.
second
Betwee
downwa
steadily
$28.09 in
D.C., off
Montgo
quarter
also inc
Washing
10.7 per
Adding
space is
shadow
by com
betwee
leased s
availab
in 2014.
compar





So
d quarter offic
n the second qua
ard slide in Montg
in the District of C
n Montgomery Co
fice rents per squa
omery Countys of
of 2013 to 14.8 pe
reased, but at a s
gton, D.C. experie
rcent over the yea
to concerns over
s not actually bein
w vacancy is a b
mercial real estat
en the reported va
space that is com
le space in Montg
The 2nd quarter 2
red to a reported
ource: Research & S
e market high
arters of 2013 and
gomery County a
Columbia. Averag
ounty, and by 76
are foot reached
ffice vacancy rat
ercent in the 2nd
slower pace, from
enced a slight inc
ar, but its vacanc
r the local office m
ng used nor is it b
barometer of futu
te data sources. O
acancy rate and
ming back on the
gomery County in
2014 office availa
14.8 percent vac
Special Projects Divi
lights
d 2014, office rents
nd other suburba
ge asking rents fel
cents to $28.36 in
d $49.64, up by $1
e increased from
quarter of 2014. V
m 15.9 percent to
crease in office va
cy rate remains th
market is that an u
eing offered for s
re office market c
One proxy for this
the availability r
market. The sprea
ncreased from 2.1
ability rate in the C
cancy rate.
ision, Montgomery C
s continued on a
n office markets,
ll over the year by
n Fairfax County. I
.13 from the prior
13.7 percent in th
Vacancies in Fairf
16.3 percent yea
acancies, from 10
e lowest in the re
unknown amount
ublease by tenan
conditions, but is n
indicator is the sp
ate, which includ
ad between vaca
percent in 2007
County was 18.9 p
County Planning De
slight
while rising
y 25 cents to
n Washington,
year.
he 2nd
fax County
r over year.
.3 percent to
gion.
t of leased
nts. This
not tracked
pread
des currently
ant and
to 4.1 percent
percent,
epartment, analysis of CoStar office maarket data as of 7/22/2014.