BETHESDA, MD–There has been little development in the Bethesda submarket for the past two years, leaving tenants clamoring not only for new product — but a different type of new product, according to a JLL market brief.

“Tenants want buildings with creative design and unique use of space,” JLL Senior Research Analyst Sara Hines tells GlobeSt.com. “Anything in the commodity class A space won't work. Even with generous TIs and other incentives, it won't work.”

According to JLL, demand is projected to lift occupancy in the Bethesda CBD class A to a historic high of 3.7 million square feet by 2019. Furthermore JLL identified 2.6 million square feet of prospective DC tenant expirations through 2025 for potential future Bethesda CBD relocation. Vacancy in the submarket is currently 3.8% for building built after 2000.

There are three building under development being built on spec and Hines believes these will lease up faster than a spec building usually does. The buildings are JBG Cos.' 4747 Bethesda Ave., Carr Properties' 7272 Wisconsin Ave. and StonebridgeCarras' 7359 Wisconsin Ave. for a total of one million square feet of trophy space.

“The trophy market has been underserved in Bethesda,” she says.

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“The trophy market has been underserved in Bethesda,” she says.

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Instant Insights /

Bethesda Tenants Clamor For Something New

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