GAITHERSBURG, MD—An office owned by Federal Realty Investment Trust here has gone from 43% occupancy 18 months ago to 93% today, with the completion of a new lease and two renewals. The building, located at 656 Quince Orchard Rd., is represented by EDGE. It has secured three transactions totaling 63,582 square feet over time frame.
EDGE also represents Federal Realty in other locations, including Mount Vernon, Graham Park and the Village at Shirlington in Virginia.
"Gaithersburg is a notoriously challenging submarket, but by closely collaborating with Federal Realty, we were able to engineer creative solutions to attract tenants," says Tony Salah, senior vice president at EDGE Commercial Real Estate, in a prepared statement.
The Gaithersburg submarket is currently registering vacancy rates over 25% as well as negative net absorption with many tenants downsizing and leaving the submarket.
EDGE and Federal Realty repositioned the building – or at least the market perception of the building – with such capital improvements as a new lobby, updated elevator cabs and renovated restrooms.
New tenants include NVR Homes who signed a 10-year lease for the entire 5th floor. There were also two renewals by Scientific Consulting Group and Digital Infuzion that included significant expansion. Also, EDGE itself moved into the building, relocating its corporate headquarters to the site.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
