In Maryland’s suburbs, mixed-use office sees rent premium to traditional suburban office product
Office space in more desirable “live, work, play” mixed-use environments leases at an average rent premium of 24% compared to more traditional suburban office parks.
December 04, 2019
- Office product with direct access to mixed-use amenities leases at higher rental-rates, presenting a quality alternative to companies focused on suburban options in Maryland outside of the Beltway.
- Office space in more desirable “live, work, play” mixed-use environments leases at an average rent premium of 24% compared to more traditional suburban office parks. Furthermore, existing office space within immediate proximity of Montgomery County’s major mixed-use developments (Pike & Rose, Rockville Town Center, Park Potomac, Rio Washingtonian) have a combined vacancy rate of 3.5%. Only one large block of availability over 20,000 s.f. is on the market at the currently under-construction 909 Rose Ave in Federal Realty Investment Trust’s Pike & Rose.
- As traditional suburban office product has seen significant private sector relocations to more urban, amenitized markets, mixed-use developments continue to perform well. And, with new construction in the pipeline, these micro-markets present an alternative for tenants looking to locate in modern, well-amenitized office space.
Source: JLL Research