Rockville, MD Commercial Real Estate

Rockville, MD Economic Overview

One of Maryland’s oldest towns, Rockville is a central city located in Montgomery County, forming part of the Baltimore-Washington metropolitan area. Rockville is home to 64,331 residents and is at the core of the Interstate 270 Technology Corridor. The Corridor is home to numerous software and biotechnology companies, as well as several federal government institutions. Rockville has grown very rapidly from a leisurely, agriculturally-orientated county seat to a cosmopolitan city with many neighborhoods. The city also has several upscale regional shopping centers, making the Rockville commercial real estate market a major hub in Montgomery County.

Rockville’s economy continues to expand with strong performance and has historically been a major economic hub with over 75,000 jobs. Part of a regional economy, Rockville showcases many different job clusters and commuting patterns between employees’ work locations and where they live. Up to 15% of Rockville’s residents also work in the city, meaning that 85% commute outside the city for work. Although a relatively quiet city, Rockville is located on the Interstate 270 Highway (I-270), connecting the city to an iconic strip of biotech firms. This includes healthcare firms like Emergent BioSolutions, Human Genome Sciences, and Adventist Healthcare. Overall, Rockville is a desirable location in the growing Metropolitan Washington region with both key private and public sector employment, including Montgomery College and the nearby campus of the Universities of Maryland and the recently constructed National Cancer Institute.

Rockville, MD Commercial Real Estate Market

Rockville’s office space accommodates over 49,100 jobs in the city, representing 63% of all Rockville jobs. There are a variety of office spaces in the city, including individual buildings, such as those in Town center and along Rockville Pike, or in campus office parks. The majority of office employment is located along Rockville Pike, Research/King Farm/Piccard/Fallsgrove, Town Center and Tower areas in 600 acres or 8.5% of the total city land area. This amounts to over 12 million square feet of total office space, with more than 42% of Rockville’s office jobs located in the I-270 corridor. While the federal government’s Freeze the Footprint initiative to reduce the amount of private space leased has resulted in some reduction, office space related employment is projected to grow through to 2040, and the city has made the necessary proposals for new, additional office developments.

Rockville Town Center is a thriving and increasingly attractive downtown core and offers a mix of office space, restaurants, services, culture and government uses, now including a full-service headquarters hotel. It currently hosts the majority of the city’s employment outside of the education sector. Local government generates a large amount of activity here and supports many Town Center private-sector activities, including retail, restaurants, medical office and general office space. The Rockville Town Center commercial real estate market is a highly competitive area for commercial real estate throughout the region, and offers over 3.1 million square feet of office space, including for firms in the biomedical sector. Other biomedical firms are located throughout the city.

Research/Piccard/King Farm is the largest employment region in the Rockville city area, offering over 21,000 jobs. The Rockville Research/Piccard/King Farm office market includes over 15.2 million square feet of office space in the North West of the city. The Research/Piccard/King Farm area is the largest area of concentrated office space along the I-270.

Rockville Pike is located at the south end of the city and includes just over 1.5 million square feet of office space. The Rockville Pike office market is also nearby neighboring office parks in Rock Spring and Executive Boulevard.

Rockville, Office Sales Volume

Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.

Rockville, Office Transactions

Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.

Rockville, MD Commercial Inventory Breakdown

Office Spaces

Total: 24,971,063 SF

Data provided by Yardi Matrix, properties over 50k SF, includes office with retail

By square footage range:

50k to 100k SF: 3,717,718 SF / 14.89% of total office
100k to 500k SF: 18,181,197 SF / 72.81% of total office
500k to 1M SF: 1,739,666 SF / 6.97% of total office
> 1M SF: 1,332,482 SF / 5.34% of total office

By class:

Class A: 9,754,453 SF / 39.06% of total office
Class B: 13,156,085 SF / 52.69% of total office

Employment in Rockville, MD

Rockville jobs are primarily knowledge-based, with a high concentration of jobs in public administration, professional, scientific and technical services, education services, and healthcare. Local government and education are among the highest employers. Local government, in its many forms, is a key anchor for the health of Rockville’s Town Center and has created many spinoff employment opportunities in the area.

According to the Bureau of Labor Statistics, the following sectors employ the most people in the region:

Professional and business services – currently employs 131,100, growing at 2.8%/year;
Government – currently employs 114,500, growing at 1.9%/year;
Education and Health Services – currently employs 92,500, growing at 1.3%/year.

Education in Rockville, MD

Rockville is home to Montgomery College (Rockville Campus), as well as satellite campuses of the University of Maryland University College, the John Hopkins University Montgomery County Campus, and the University at Shady Grove. Rockville is served by Montgomery County Public Schools, which include three high schools in the area. There are also three major private high schools in Rockville.

Commuting Time in Rockville, MD

Rockville is frequently commuted to by workers coming from outside the city—only 14.9% of Rockville’s resident workforce lives and is employed in the city. Just about 56% of total Rockville residents commute less than 10 miles to work and only 47.6% of Rockville workers commute less than 10 miles to work.

The Red line of the Washington metro rail system serves the Rockville and Twinbrook station, and the Brunswick Line of the MARC commuter rail system, running to and from Washington, DC, at the Rockville Station. Amtrak also provides intercity train service to Rockville from Pittsburgh, Chicago, and Washington, DC.

Rockville Demographics

Population

Total Population138,154
Male Population(48.1 %) 66,508
Female Population(51.9 %) 71,647
Median Age39.00

Income/Financial

Average Household Income$126,287
Median Household Income$99,058
Median Income Under 25$51,667
Median Income 25-44$98,398
Median Income 45-64$122,768
Median Income Over 65$75,777

News

Meritage Sells Office Property in Booming DC Corridor

May 31, 2017

CommercialCafé is your first and only stop when it comes to commercial real estate leasings in Rockville, MD. Search through our extensive selection of commercial properties for lease. Discover the right property from our 553 listings by using our advanced search function, which includes search by property type, space availability, management company, lease rates, and more.

553 Commercial Properties Available in Rockville, MD