Another valuable Montgomery County office park property could be lost to residential housing, if the City of Rockville approves a proposal to convert it into condos and townhomes.
1455 Research Boulevard, one of many office sites located in the I-270 corridor of the County, would become 106 townhomes, 30 stacked condo townhomes, and 72 multifamily condo units, under the plan envisioned by developer Pulte. The company is building several similar developments in the City, including within the new Farmstead community, as well as in the King Farm, and Tower Oaks areas. Pulte's site plan is likely to be reviewed at a public hearing by the Rockville Planning Commission in summer or fall of 2025.
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The existing office building, which was only constructed
about 30 years ago |
The existing office building contains 17 office suites, 10 of which are currently leased, according to the property website. So the building is 59% leased. The property is 10.6 acres in size, meaning that it would still be ideal for a corporate headquarters, or a research, lab, and/or manufacturing facility, if the existing building were torn down for that purpose. It is directly adjacent to I-270. To state the obvious, all of the jobs currently provided by the current tenants of the building will likely be lost to the City and County in a conversion to housing. And the many more potential, high-wage jobs that could fill this office park site - and the resulting revenue - will never be realized.
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Pulte's proposed redevelopment plan
for residential housing |
From a County revenue standpoint, filling the current building, or replacing it with a major corporate headquarters or facility, would be more ideal than filling the site with residential housing. That's because residential housing, as we have seen this century, generates more costs in County services and infrastructure demands than it does in tax revenue. Hence the County's structural budget deficit, which extends as far into the future as the forecasts go. And do you remember "smart growth," which included placing jobs near housing, to reduce congestion and auto emissions in the I-270 corridor? Neither do the County Council and Planning Board, which don't even talk about "smart growth" anymore, having abandoned its fictional, expedient construct for the equally-fictional canards of "affordable," "attainable," "equity," "inclusionary," and "missing middle" - all code words bandied about in a nationwide campaign to allow upzoning for higher-density luxury housing in existing suburban neighborhoods.
Office, research, manufacturing and commercial uses, in contrast, generate less traffic and require no additional school capacity, for example. The problem is that the Council has driven the County's economy into the ditch over the last 23 years, through radical anti-business policies, and a failure to provide the necessary infrastructure to compete with Northern Virginia, such as direct highway access to Dulles International Airport via a new Potomac River crossing. Montgomery County has not only lost every competition for major corporate headquarters to Virginia during this time, but is most often not even in the hunt for these opportunities.
As a result, Montgomery County has failed to attract a single major corporate headquarters in over 25 years. While MoCo leaders slumbered this century, Virginia added the HQs of Northrop Grumman, Intelsat, Hilton Hotels, Nestle, Lidl, Gerber, Volkswagen, Corporate Executive Board, Amazon HQ2, CoStar, Lego, and more. And those are just ones we lost to Virginia!
Montgomery County has been left to spend large sums just to retain some of the HQs it had, like Marriott International, Choice Hotels, and GEICO, all of which have downsized when making their moves. In addition to such rearrangements of the deck chairs aboard the Titanic, Montgomery County has lost still other HQs that it had altogether. While the Council argued about the legality of circus animals one week last decade, representatives of New York City and Knoxville were completing final, secret negotiations that sealed their victory in snatching away the Discovery Communications HQ from downtown Silver Spring.
Obviously, property owners such as those at 1455 Research Boulevard can't be blamed for all this. They, understandably, are not going to simply wait for a future ousting of the Montgomery County cartel from power to maximize their investment. So we are likely to end up with more residential housing at this site. The Council is not sad about that, as their developer sugar daddies want them to keep Montgomery County bad-for-business, so that prime office park sites can become residential housing sites instead. Virginia prepares and markets such office/industrial properties extensively to international businesses, and reaps the spectacular results; Montgomery County just waits for someone to build housing on them. Too bad that Montgomery County residents will continue to shoulder the increasing tax burden to make up for all of this lost business and commercial revenue. Heckuva job, Brownie!
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