[[{“value”:”
Suburban Maryland’s office market recorded steady leasing activity in the first quarter of 2026, supported by a mix of new commitments and renewals across key submarkets, according to a report from Cushman & Wakefield. Total gross leasing volume in the suburban Maryland region reached nearly 524,700 square feet in Q1 2026, reflecting ongoing tenant demand despite a slight decline in average asking rents year-over-year.
Montgomery County drove the majority of this activity, accounting for 365,000 square feet of leases, or roughly 70% of the region’s total. Demand was concentrated in the Bethesda/Chevy Chase and I-270/Rockville submarkets, which continued to attract office users seeking space in established suburban locations. The quarterly volume included 391,100 square feet of new leases and 133,600 square feet of renewals, indicating both new entrants and existing tenants recommitting to the market.
One of the most notable transactions of the quarter was a large lease by the University of Maryland’s ARLIS, which signed for 110,000 square feet at 4400 River Road. The lease is tied to a project that is expected to begin construction later in 2026, signaling ongoing occupier interest in future office deliveries. In another deal underscoring demand in Bethesda, GEICO expanded its footprint by taking an additional 21,000 square feet at 7272 Wisconsin Avenue. This expansion brought the building to full occupancy, highlighting the strength of that particular asset within the submarket.
While demand remained solid, pricing showed modest softening. Average asking rents across Suburban Maryland edged down slightly compared with the same period a year earlier. Even so, there is clear differentiation within the region. The Bethesda/Chevy Chase submarket remains the highest-priced area, with average asking rents at $43.09 per square foot. Rock Spring Park is the next most expensive, posting average asking rents of $32.21 per square foot.
Taken together, the first-quarter figures paint a picture of a suburban office market where tenant demand is holding up, especially in established, higher-end submarkets. Concentrated activity in Montgomery County, significant new leases such as the ARLIS commitment, and the full lease-up of a Bethesda building point to continued tenant interest, even as landlords adjust asking rents in response to broader market conditions.
The post Montgomery County Leads Q1 2026 Suburban Maryland Office Leasing, Cushman & Wakefield Reports appeared first on CRE Market Beat.
“}]]
