Bethesda is home to more than 2,800 businesses with a downtown workforce that exceeds 33,000. The services industry is the area' largest employer, with 1,263 firms and more than 16,000 employees. Retail trade and finance/insurance/real estate are second and third, respectively.

Bethesda is also home to nearly 200 full service restaurants. "The downtown area has become known as the place to go when considering suburban Maryland restaurant choices," says Peter Framson, principal at Trammell Crow Company. Bethesda is surrounded by the regional malls of Rockville (home to White Flint Mall and Rockville Pike) and Chevy Chase. Chevy Chase retailers include Saks 5th Avenue, Lord & Taylor, Neiman Marcus, Linens ÿN Things, Borders Books and General Cinemas. "With the volume of retail activity in the surrounding area, Bethesda has carved out its niche as a restaurant and service retail market," says Framson.

By far, the greatest new retail development in Bethesda has been the redevelopment of Bethesda Row. "The renovation and expansion of Bethesda Row has had a ripple effect through the adjacent streets," says Framson. Federal Realty Trust is the owner and redeveloper of Bethesda Row. Today the redevelopment' tenant roster includes Barnes & Noble, Blockbuster Video, Cosi and a multitude of independent and regionally known restaurants and service retailers. The next piece of Bethesda Row is under construction and will open this spring.

New development is difficult in Bethesda, because, according to Framson, the market is nearly built-out and the downtown retail vacancy rate is under 2.5 percent. In the 1980', the subway system opened in Bethesda and soon thereafter, vertical development of offices, hotels and residences began. "Today, because of horrific traffic conditions and a lack of available parking, new development is typically located in close proximity to publicly built parking garages," says Framson. Although there have been no recent openings of nationally known retailers, CVS opened last year on a free-standing parcel and McCormick & Schmick, Cosi, Jaleo and several local retailers have assumed new locations in the market.

Areas to watch for in the near future, according to Framson, include the redevelopment of Silver Spring, Maryland.

Peter Framson is a principal with Trammell Crow Company.


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