With an office vacancy rate nearing 22%, Montgomery County Council’s Economic Development Committee members propose to codify and expand its current program to financially help new or expanding businesses.
On Wednesday, legislation will be introduced to increase funding under its MOVE – Make Office Vacancy Extinct – program.
Since COVID, residents have been working from home more often. Thanks to modern technology, the need for rooms full of file cabinets is a thing of the past. The result is more empty offices, which depress property values and county tax revenue and negatively affect the nearby neighborhood.
On Monday, several councilmembers stood in front a property owned by Rubenstein Partners in Rockville, which has vacant offices, and stressed the need for the county to get involved.
“It really allows business owners to know Montgomery County means business,” said Councilmember Marilyn Balcombe.
Currently, the county offers up to $80,000 to a business that wants to move into the county. Under the proposed legislation, up to $150,000 will be awarded to a business that wants to move into the county or a current business that wants to expand, explained Councilmember Evan Glass.
“It’s a huge problem, and it is a huge concern for all of us in county government,” Glass said, adding that there is about 76 million square feet of office space, and it’s important to use it all.
Full offices mean more people eat meals at area restaurants and often live nearby, he said.
“No one wants to live next to a building that is empty. That brings crimes,” added Councilmember Natali Fani-González.
Jessica Jackson, HR director at Origin Wireless, said her company used these funds to move into Rockville for a more centralized location for its workforce. Hiring increased, and workers appreciate that they can quickly get to their children’s school in case of an emergency.
In the past 10 years, the MOVE program has awarded $5.6 million in funding, assisting 123 companies that created almost 600 jobs.
In the previous fiscal year, the MOVE program supported 22 companies that leased a total of 92,720 square feet.
Beyond MOVE funding, the economic development committee members will also look into ways to convert office space into residential or recreational space.
Speaking in support of legislation that will codify the Make Office Vacancy Extinct (MOVE) grant program into law. Thank you @CMEvanGlass for your leadership on this issue! pic.twitter.com/IqbnMVordA
— Councilmember Laurie-Anne Sayles (@CM_Sayles) April 15, 2024
The MOVE Act follows months of work by ECON Committee when hosted a roundtable of real estate brokers, building owners & other stakeholders to discuss causes of office market vacancy. Proposed changes will bring MOVE into new economic environment. Thanks @CMEvanGlass 4 leading! pic.twitter.com/YqIeCJJQX2
— Natali Fani-González (@NataliFGonzalez) April 15, 2024
