The Maryland-National Capital Park & Planning Commission: MCPB Item #3 March 31, 2005

MCPB
Item #3
March 31, 2005
THE MARYLAND-NATIONAL CAPITAL PARK & PLANNING COMMISSION
March 25, 2005

Memorandum
To: Montgomery County Planning Board
From: Research & Technology Center staff
Karl Moritz, 301-495-1312
Krishna Akundi, 301-495-4561
Wayne Koempel, 301-495-4718
Sharon Suarez, 301-495-4720
Re: Economic Forces That Shape Montgomery County 2005 Annual Update
Attached please find a copy of the 2005 Annual Update to Economic Forces
That Shape Montgomery County. This report finds the County’s economy healthy,
with modest job growth, sustained federal government activity, and continued
recovery in the commercial space market.
The for-sale housing market, very strong last year, is even stronger this year.
Home prices continue to accelerate. Most single-family homes are priced out of the
range of households earning the County’s median income of $84,446. A household
earning the median income can still afford the median-priced existing townhouse and
the median-priced condominium, but that will not be true in a few years if current
trends continue.
MONTGOMERY COUNTY PLANNING BOARD, 8787 GEORGIA AVENUE, SILVER SPRING, MARYLAND 20910
WWW.MNCPPC.ORG
MARCH 2005
Economic Forces That Shape

Montgomery County
2005
RESEARCH & TECHNOLOGY CENTER
MONTGOMERY COUNTY DEPARTMENT OF PARK & PLANNING
Montgomery County
Annual Update 2005

March 2005
Produced by
Research & Technology Center

Montgomery County Department of Park and Planning
Maryland-National Capital Park and Planning Commission
with
Towson University
The Maryland-National Capital Park & Planning Commission is a bi-county agency

created by the General Assembly of Maryland in 1927. The Commission’s
geographic authority covers most of Montgomery and Prince George’s counties. The
Commission’s planning jurisdiction, the Maryland-Washington Regional District,
comprises 1,001 square miles; its parks jurisdiction, the Metropolitan District,
comprises 919 square miles.
The Commission has three major functions:
(1) The preparation, adoption, and, from time to time, amendment or

extension of The General Plan (On Wedges and Corridors) for the
Physical Development of the Maryland-Washington Regional District
Within Montgomery and Prince George’s Counties.
(2) The acquisition, development, operation and maintenance of a public park

system.
(3) In Prince George’s County only, the operation of the entire County public
recreation program.
The Commission operates in each county through a Planning Board appointed by and
responsible to the county government. The Planning Boards are responsible for
preparation of all local master plans, recommendations on zoning amendments,
administration of subdivision regulations, and general administrations of parks.
The Maryland-National Capital Park & Planning Commission encourages the

involvement and participation of individuals with disabilities, and its facilities are
accessible. For assistance with special needs (e.g., large print materials, listening
devices, sign language interpretation, etc.), please contact the Community
Relations Office, 301-495-4600 or TDD 301-495-1331.
ELECTED AND APPOINTED OFFICIALS
County Council
Thomas E. Perez, President

George Leventhal, Vice President
Phil Andrews
Howard Denis
Nancy Floreen
Mike Knapp
Marilyn Praisner
Steve Silverman
Michael L. Subin
County Executive
Douglas M. Duncan
The Maryland-National Capital Park & Planning Commission
Derick P. Berlage, Chairman

Elizabeth M. Hewlett, Vice Chairman
Commissioners
Montgomery County Prince George’s County

Planning Board Planning Board
Derick P. Berlage, Chairman Elizabeth M. Hewlett, Chairman

Wendy C. Perdue, Vice Chair William M. Eley, Jr., Vice-Chair
Allison Bryant James F. Harley
John Robinson John H. Squire
Meredith K. Wellington Sylvester J. Vaughns
Abstract
Title: Economic Forces That Shape Montgomery County: Annual
Update 2005
Author: Montgomery County Department of Park and Planning

Maryland - National Capital Park and Planning Commission
Subject: Economic Indicators of the Health of Montgomery County’s

Economy, Focusing On Job Growth, Federal Impact, Commercial
Space Activity, and the Housing Market
Source of Copies: The Maryland-National Capital Park & Planning Commission

8787 Georgia Avenue, Silver Spring, Maryland, 20910
301-495-4700
http://www.mc-mncppc.org
Date: March 2005
Number of Pages: 40
Abstract: Economic Forces That Shape Montgomery County is an annual

report started in the mid-1990s when there was concern about
Montgomery County’s slow recovery from the 1991 recession. The
report includes information not available elsewhere, especially:
trends in high-technology employment sectors; trends in federal
government activity as an employer, as a landlord and tenant, and
as a purchaser of goods and services; trends in the commercial
space market; and trends in the housing market.
Economic Forces That Shape Montgomery County
Annual Update 2005
Table of Contents
About Economic Forces That Shape Montgomery County........................................1
2005 Annual Update
Review of Selected Economic Indicators ..........................................................2

Job Growth................................................................................................3
Federal Impact...........................................................................................5
Commercial Space Market........................................................................7
Housing Market.........................................................................................8
A Graphical Review...........................................................................................1
Job Growth................................................................................................2
Federal Impact.........................................................................................11
Commercial Space Market......................................................................15
Housing Market.......................................................................................24
ECONOMIC FORCES THAT SHAPE MONTGOMERY COUNTY
ANNUAL UPDATE 2005
About Economic Forces That Shape Montgomery County

Economic Forces That Shape Montgomery County is an annual report started in
the mid-1990s when there was concern about Montgomery County’s slow recovery from
the 1991 recession. The first report found slow growth but very healthy fundamentals.
Since then, each subsequent report has found somewhat more rapid growth, whereupon
last year we were able to conclude that the economy was very healthy, growing at a rapid
but manageable pace.
The Economic Forces studies seek to support the Montgomery County Council’s
economic analysis needs, particularly during preparation of the budget and when
evaluating economic development initiatives or regulatory proposals. To accomplish this,
the Research & Technology Center has worked with County government agencies to
identify economic trends and for suggestions on how to improve the usefulness of the
report. Such collaboration helps eliminate duplication of effort while helping to assure
that even though opinions may differ, the information underlying those opinions is
consistent and valid.
A major value of each Economic Forces update is that a review of the trends
indicates issues that deserve more in-depth study. In the past, such studies have included
a study of Class B & C office space, a commercial sites characteristics inventory, in-
depth reports on Montgomery County’s information technology and biotechnology
industries, and housing market studies. Other recent projects include an update to a 1993
analysis of retail space and an update of our inventory of land available for non-
residential construction. Last year, a special focus of the Economic Forces report was a
review of the economic impact of associations on the Montgomery County economy.
This analysis was performed at the suggestion of the Montgomery County Department of
Economic Development and the Association Council of Montgomery County.
This year there are no “special studies” included in the Economic Forces report.
Developing the in-house expertise required to complete the Economic Forces

update has strengthened the Research & Technology Center’s ability to support master
plan development and to respond quickly and thoroughly when policy questions arise,
such as debates on the County’s Growth Policy, affordable housing, elderly housing, and
other issues.
1
ANNUAL UPDATE 2005
Review of Economic Indicators
Each annual update of Economic Forces That Shape Montgomery County

contains four core areas that are updated each year:
• Job Growth: This section consists of a review of statistics on jobs created or lost
by each industry in Montgomery County, compared to the state and the nation,
with special emphasis on the County’s technology sectors. This section relies on
ES-202 data compiled by the Maryland Department of Labor, Licensing and
Regulation (DLLR) and reported to the U.S. Bureau of Labor Statistics. Although
these data are confidential, state universities have access to the full database and
are permitted to release custom analyses as long as they do not compromise
confidentiality. The Research & Technology Center staff has a long partnership
with Towson University to conduct this analysis for us. In addition, the Research
& Technology Center depends greatly on the Montgomery County Department of
Finance for advice and insight on these job statistics and for their perceptive
analysis of the variety of other factors affecting the County’s economy.
• Federal Impact: By far, the largest single influence on Montgomery County’s

economy is the federal government: as an employer, as a landowner, as a tenant,
and as a purchaser of goods and services. Each year, Research & Technology
Center staff survey each federal installation in the County about current and
expected employment changes, construction plans, and space leasing activities.
Typically, Research staff also analyze federal purchasing and contracting activity
– however, again this year the federal procurement data are not yet available.
Staff will provide the Planning Board and County Council will an analysis of
federal procurement trends when the data are available.
• Commercial Space Activity: The relationship of economic trends to the pace and
character of development is of particular interest to officials and staff making land
use decisions. One of the major questions addressed by the first Economic Forces
That Shape Montgomery County report focused on understanding the collapse of
the commercial space market that occurred during the 1990-91 recession.
Subsequent reports have focused on tracking and understanding the market’s
recovery as well as looking for signs of pending weakness.
• The Housing Market: Each year, Economic Forces includes a report on the
County’s housing market from the perspective of County residents – those who
are, or intend to be, homeowners or tenants in the County. Housing continues to
be one of the strongest aspects of the economy and housing issues are the focus of
considerable public attention at this time.
2
ANNUAL UPDATE 2005
Job Growth
Montgomery County added 4,019 jobs between the second quarter of 2003 and
the second quarter of 2004, an increase of 0.9 percent. This compares with a job growth
figure of 1,921 in last year’s report and 2,159 in the previous year’s report. Job growth
has not been greater than 1 percent since 2001.
Although the Economic Forces report focuses on second quarter data, the state is
expected to release third quarter 2004 job statistics prior to the Economic Forces
presentation to the Montgomery County Planning Board and County Council.
Between the second quarters of 2003 and 2004, private sector jobs grew by 4,869,
or 1.3 percent. Industries that added the most jobs were Healthcare and Social Assistance
(up 2,111 jobs), Management of Companies and Enterprises (up 1,244 jobs), and
Construction (up 941 jobs). Major industries with the greatest percentage increases were
Management of Companies and Enterprises (up 81 percent), Transportation and
Warehousing (up 22 percent), and Healthcare and Social Assistance (up 4.7 percent).
Public sector jobs decreased by approximately 850 jobs, or 1.1 percent. This
approximately reversed last year’s gain in the public sector of 947 jobs, or 1.2 percent.
About 550 of the jobs lost were federal government jobs.
About the Data
The job growth statistics reviewed in this report are from the Maryland
Department of Labor, Licensing and Regulation (DLLR) and the data series is known as
the “ES-202 series.” The data is collected from firms submitting information for
unemployment insurance purposes. Therefore, jobs that are not covered by
unemployment insurance are not included in this jobs series. These include sole
proprietorships, farm workers, some domestic workers, and unpaid family workers.
Certain non-profit employers, such as churches, may not be counted. Some students and
spouses of students in the employ of schools, colleges, and universities are also excluded.
Although there are these gaps, this is a standard data series for measuring job growth and,
because the information is reported for every county in the nation, the series allows us to
compare Montgomery County trends with those of the state and nation.
For the period covered by this report, second quarter 2003 to second quarter 2004,
DLLR made a 5,300-job “non-economic change” to Montgomery County’s job statistics.
In essence, DLLR is indicating that there are 5,300 jobs in the state of Maryland that
have, in the past, been erroneously attributed to Montgomery County when they were
actually in another jurisdiction in the state. This follows a similar, although smaller,
“non-economic change” DLLR made last year to the local government job totals.
3
ANNUAL UPDATE 2005
DLLR has indicated that this year’s non-economic changes are in the private
sector and spread among various industries. This Economic Forces report adjusts all job
growth statistics to account for these non-economic changes using a method developed
by the Montgomery County Department of Finance after consultation with DLLR.
The High Tech Sectors: Holding Steady Following Declines
The number of high-tech jobs in Montgomery County remained unchanged

between the second quarter of 2003 and the second quarter of 2004. Last year we
reported that Montgomery County’s high tech sectors fell by 9.2 percent between the
second quarters of 2002 and 2003, losing about 4,700 jobs. During the previous one-year
period, high tech jobs fell by 6.9 percent.
Private sector high tech jobs are about 13 percent of the County’s economy. That
does not include the many public sector high tech jobs in Montgomery County, including
those at federal installations such as the National Institutes of Health, the National
Institute for Standards and Technology, and the Department of Energy.
The lack of change in the number of high-tech jobs in Montgomery County was
mirrored at the state and national levels.
After two successive years of sharp decreases, the Aerospace industry in

Montgomery County held steady at about 15,000 jobs. Trends in the County’s Aerospace
jobs are similar to those affecting Aerospace jobs in the state and nation, although the
shifts are more pronounced at the local level.
Biotechnology continues to outshine the other tech sectors in the County in terms
of percentage growth. Biotechnology grew by 5 percent for the second year in a row.
Nationally, biotechnology jobs showed a very slight decline over the same period.
In previous years, Montgomery County’s information technology and

telecommunications industry had been performing about the same as the state and the
nation. Unfortunately, in the past couple of years, this has meant a decline in jobs. This
year is different: “Infocom” in Montgomery County added jobs at a rate of 1.4 percent
while the state and nation continued to show job losses. The state lost about 6 percent of
Infocom jobs between the second quarter of 2003 and the second quarter of 2004, while
the US lost about 0.3 percent of Infocom jobs over the same period.
High tech manufacturing in Montgomery County consists of companies

manufacturing industrial machinery, electronic equipment, transportation equipment, and
instruments and measuring devices. The sector is relatively small (8,200 jobs) and
somewhat volatile. Between the second quarters of 2003 and 2004, Montgomery
County’s high tech manufacturing sector lost 500 jobs (6 percent), compared to a 2
percent decline in the state and a 1 percent decline for the nation.
4
ANNUAL UPDATE 2005
Other Major Sectors
“Business services” is a major component of the County’s economy, comprising

over 95,000 jobs. The County’s Business Services jobs increased by 2.2 percent between
the second quarters of 2003 and 2004. This follows almost four years of little change.
Construction jobs in the County increased 3.3 percent and are now at their highest
levels since 1990. This increase mirrors trends at the state and national level.
The highest-paying sectors (employing more than 500 people) in Montgomery

County are: chemical manufacturing (average wage: $106,500), broadcasting (average
wage: $103,200), securities and commodities brokers (average wage $97,300), computer
and electronic product manufacturing (average wage: $88,300), and support activities for
transportation (average wage: $82,000). The largest sector with an average wage in
excess of $60,000 per year is the “professional, scientific, and technical services” sector
with an average wage of $67,000 and 60,900 jobs. Of the major private sectors, the “food
services and drinking places” sector pays the lowest average wages, about $16,000 per
year.
The average salary paid by a Montgomery County job in the second quarter of
2003 was $49,400 per year, an increase of 3.6 percent over the previous year. The
average private sector job pays about $46,200 while the average public sector job pays
$64,500. The comparatively higher salaries paid by the public sector are due to federal
government salaries, which average $76,500.
Federal Impact
The federal government plays three very important roles in Montgomery County’s
economy: it is an employer, it is a tenant and landowner, and it is a purchaser of goods
and services.
During fiscal year 2003, the federal government pumped $13.3 billion dollars into
the County’s economy in the form of federal expenditures, 23 percent of all the federal
expenditures in Maryland. The federal government spent $5.7 billon to purchase goods
and services, paid $3.6 billion in wages and salaries to County workers, paid County
residents $2.8 billion in direct payments to individuals for retirement and other benefit
programs, and spent $1.2 billion on grants.
Federally Leased Space
Federally leased space has been increasing by almost 2 percent per year since
2000. The General Services Administration (GSA) currently leases 7.0 million square
feet of space in Montgomery County, an increase of 126,000 square feet compared to
2004. GSA leases about 11 percent of the County’s existing rental office space and pays
an annual rent totaling $153 million, an increase of $6 million over the previous year.
5
ANNUAL UPDATE 2005
Over half of GSA’s inventory, 68 percent (4.8 million square feet), is occupied by
the Department of Health and Human Services (HHS). During the past year, HHS is the
only agency that appreciably increased their leased space, increasing their inventory by
168,100 square feet, a 3.6 percent increase. The Department of Commerce is the only
other agency occupying more than 1 million square feet of GSA leased space; its 1.1
million square feet is 16 percent of GSA’s inventory in the County.
Over half of GSA’s leased space is in the Rockville area, which includes most of
North Bethesda. GSA leases 4.0 million square feet of space in the Rockville area, 57
percent of their County inventory. Two other areas have over 1 million square feet of
GSA leased space: Silver Spring has 1.3 million square feet (18 percent) and Bethesda
has 1.1 million square feet (15 percent).
About 19 percent of GSA’s leased space, 1.3 million square feet, is up for renewal
in 2005. HHS occupies about 79 percent of this space, mainly in the Rockville area. The
Food and Drug Administration (FDA) is the tenant for about 23 percent of the space that
is up for renewal in 2005 – about 307,000 square feet. During the past year, GSA
renewed six FDA leases for five more years (2004-2009). During 2004, GSA did not
renew six other leases totaling 209,900 square feet. Of the space that GSA did not renew,
HHS occupied about 81 percent, but none of it was FDA space. Since HHS is the only
agency that increased its leased space during the past year, we believe it is likely HHS
will renew these leases or relocate these offices within the County.
About 67 percent, or 4.7 million square feet, of GSA’s space is leased beyond
2008. This is 800,000 square feet more than last year. Lease space up for renewal in
2009 almost doubled during the past year, increasing from 588,000 square feet in 2004 to
1.1 million square feet in 2005, an increase of 94 percent increase. Much of this increase
was the result of GSA signing new five-year leases on leases that were to expire in 2004.
In general, history indicates that GSA typically renews most of these leases.
Among the reasons GSA prefers to renew most leases is that moving means relocation
costs. The main reasons for not renewing leases are: consolidating into government
owned space, not needing the space due to changes in work programs or employment
levels, and buildings becoming too old and outdated.
Survey of Agencies
Collectively, the thirteen agencies and installations surveyed estimate they have
about 65,400 workers in 2005, an increase of about 3.5 percent, or 2,200 workers,
compared to 2004. Most of the increase is the FDA reporting 1,450 more workers and
the National Oceanic and Atmospheric Administration (NOAA) reporting 540 more
workers. The Department of Energy, National Institutes of Health (NIH), Health and
Human Services (other than NIH and FDA), and the Consumer Product Safety
6
ANNUAL UPDATE 2005
Commission all reported more modest gains. The Nuclear Regulatory Commission and
the Naval Surface Warfare Center at Carderock reported modest declines.
Collectively, the agencies anticipate job levels increasing between about 5 and 6.5
percent in the three 5-year periods between 2005 and 2020. This is the first time we have
asked the agencies to project their job levels to 2020. They anticipate job increases of
18.5 percent, or 12,100 jobs, between 2005 and 2020, when workers at these agencies
will number about 77,500.
Given the federal policy of shifting workers from leased space to owned space,
workers at federally owned space are expected to increase by about 14,400 between 2005
and 2020. The main shift from leased to owned space is the Food and Drug
Administration’s consolidation at their facility in White Oak and the anticipated purchase
by the federal government of the NOAA buildings in Silver Spring. Even with these
major shifts from leased to owned space, the federal government expects to remain a
major tenant in the County’s office market. In 2020, the agencies project 24,800 workers
in leased space, 2,300 fewer than 2005 but similar to 2002 levels. NIH anticipates adding
about 6,100 workers in leased space between 2005 and 2020.
Commercial Space Market

Over the past year, Montgomery County’s commercial space market strengthened
its recovery, with vacancy rates declining, absorption of new space increasing, and office
rents holding steady. At the same time last year, vacancy rates were still edging higher
and absorption of new space was slow.
In the past year, the amount of occupied Class A office space in Montgomery
County increased to 26.1 million square feet from 24.4 million square feet a year ago.
The total amount of vacant Class A office space declined from 3.5 million square feet in
2004 to 3.0 million square feet in March of 2005. The Class A office space vacancy rate
is now 8.5 percent.
Class A office rents in Montgomery County have been much less volatile than
some other markets in the region. This is particularly true when comparing Montgomery
County to Fairfax County, where average rents exceeded those in Montgomery County as
recently as 2001 but are now lower. Fairfax County average Class A office space rents
declined from a high of $33 to an average of $25 a year ago, but have now rebounded a
bit to $27. Montgomery County’s average rents for Class A office space, which have held
steady over the past year at $29, peaked at $30 a few years ago.
There are two types of vacant space: direct and sublet. Direct vacant space is
available directly from the landlord. Sublet space is available from a tenant in a building
that finds that they do not need some or all of the space they have rented. Over time,
increases in sublet space can be an early signal of recession while decreases in sublet
7
ANNUAL UPDATE 2005
space can signal recovery. However, some fluctuation is simply due to the individual
tenant circumstances.
The amount of Class A office space available for sublet in the first quarter of
2005 has declined by about 450,000 square feet from the first quarter of 2004. The
amount of vacant sublet Class A office space is now 544,000 square feet. Vacant sublet
Class A space is now half of what it has averaged this decade.
Vacancy rates for Montgomery County’s Class B office space reversed last year’s
increase from 9.1 percent to 9.8 percent. Class B vacancy rates are back at 9.1 percent in
the first quarter of 2005.
The vacancy rate for Class C space edged higher over the past year after a
dramatic decline in 2003. In last year’s report, we noted that the Class C office vacancy
rate fell from 12.4 percent to 7.1 percent. This year, the vacancy rate rose to 7.5 percent.
Again this year, Class C office space has a healthier vacancy rate than Class A or Class B
office space.
There is about 490,000 square feet of office space under construction now in
Montgomery County for completion in 2005, about half of what was under construction
at this time last year. There is another 660,000 square feet proposed for completion in
2006.
Finally, the flex and industrial space markets are still solid, even though vacancy
rates continue to increase (from 9.2 percent in 2004 to 10.5 percent in 2005). Rents have
also increased over the same time period by about $1 per square foot, showing strength in
the market.
Housing Market
The pace of the housing market in Montgomery County continues to accelerate.
Low interest rates, regional job growth, and a continued belief in the investment value of
real estate have helped push housing sales to new heights. The low interest rates,
however, are not enough to counterbalance the effect of rapidly-rising home prices, so
housing affordability continue to suffer during 2004.
The median income household could afford the median priced existing townhouse
in 2003, according to the Department of Park and Planning’s Affordability Index.
However, median prices for new townhouses and for new and existing single-family
detached homes were out of reach for most households.
Existing condominiums are also still relatively affordable, but if current trends
continue, within two years the median income household will not be able to afford the
median priced existing condominium.
8
ANNUAL UPDATE 2005
The median price of all single-family housing reached a new high of $380,000 in
the first three quarters of 2004, compared to a median price of $315,000 at the end of
2003. The median price of new detached home rose from $563,000 to over $600,000
while the price of an existing detached home increased from $376,000 to $450,000. The
median price of new townhouses climbed sharply from $358,000 to $414,000, while the
median price of an existing townhouse rose from $223,000 to $274,000.
In spite of rising prices, time on the market before a house is sold continued to be
short: 27 days on average, which is the same as a year ago. The number of home sales in
the first three quarters of 2004 was on track to be just under the 2003 pace of 18,400
single-family homes and 5,400 condominiums.
Rental housing vacancies continued to ease, according to the latest Office of

Landlord-Tenant Affairs survey. Rental vacancy rates increased from 3.8 percent to 5.1
percent in 2004. This vacancy rate is still considered healthy for landlords and provides
some relief to tenants after the very tight markets of the past (in 2001, the rental vacancy
rate was just 1.8 percent).
Apartment rents are continuing their upward trend (to an average of $1,154 in
2004) although the increase continues to slow. Rents average $1,111 in 2003. The
upward pressure on the rental market has been reduced a bit by a combination of renters
moving to home ownership to take advantage of low interest rates and an increase in
apartment construction.
In 2003, residential completions dropped from two consecutive years at a pace of

5,500 units per year. In 2004, residential completions totaled 4,300 units. Multi-family
led the way with 2,033 units, down from 2,986 units the year before. Townhouse
completions fell from 1,105 in 2003 to 791 in 2004. Construction of single-family
detached units held constant at 1,450 units.
Multi-family units were also popular with developers seeking approval from the
County and municipal planning boards. The number of multi-family units approved
outpaced single-family approvals by about 250 percent.
9
M-NCPPC Research & Technology Center

Montgomery County
Annual Update 2005
2005 Conclusions
• Overall: healthy.
• Jobs: modest job growth but faster
than in the last two years.
• Federal impact: leasing & employment
outlook still strong
• Commercial market: still in “recovery”
phase but absorption is up.
• Housing market: price increases
continue to accelerate and affordability
suffers.
1
Notes on the data

• Federal procurement data: The Federal Procurement Data Center moved to a new
system for releasing procurement data that has interrupted our reporting of federal
procurement activity. Although some data are available, there are not yet reliable
figures for federal procurement in Montgomery County for FY2004. As soon as we
are able to access the data, staff will prepare and distribute our annual analysis of
Montgomery County’s federal procurement trends.
• State reporting of job growth: This report’s job growth analysis relies on figures
provided by the Maryland Department of Labor, Licensing, and Regulation (DLLR). In
recent years DLLR has made “non-economic adjustments” or corrections to the job
statistics that make it difficult to be sure that our characterization of past job trends is
accurate. This year, DLLR reported non-economic adjustments for Montgomery
County of more than 5,300 jobs in the private sector. The Research & Technology
Center is grateful to the Montgomery County Department of Finance for their
guidance in how to address the DLLR adjustments. This report uses the Department
of Finance adjusted figures.
• Jobs data limitations: Jobs that are not covered by unemployment insurance are
not included in this jobs series. These include sole proprietorships, farm workers,
some domestic workers, and unpaid family workers. Certain non-profit employers,
such as churches, may not be counted. Some students and spouses of students in
the employ of schools, colleges, and universities are also excluded.
Job Growth
Performance
2nd Quarter 2003 to 2nd Quarter 2004
2
Job growth themes

• The number of jobs increased by 4,019 to
450,888
• Technology jobs held steady after previous
declines.
– Aerospace: unchanged
– Biotechnology: up 5%
– Infotech & telecom (infocom): up 1.4%
– High tech manufacturing: down 1.4%
• Industries in all wage categories added jobs.
• Unemployment rate “rebenchmarked” to
2.9%.
Total jobs increased by 4,000

25,000
Second quarter figures (change from previous year)
20,000
15,000
10,000
5,000
0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
-5,000
-10,000
-15,000
Between the second quarters of 2003 and 2004, Montgomery
County added 4,019 jobs, or 0.9 percent.
Source: RESI compilation of DLLR data (2004Q2); modified in consultation with

Department of Finance and DLLR.
3
Health services adds most jobs.

2003 2004 Change
Natural Resources and Mining 675 725 7.4%
Construction 28,493 29,434 3.3
Manufacturing 16,003 15,445 -3.5
Trade, Transportation and Utilities 63,603 63,622 0
Information 15,047 14,993 -0.4
Finance Activities (incl. Real Estate) 34,703 34,382 -0.9
Professional & Business Services 94,666 96,593 2.0
Education & Health Services 52,908 55,354 4.6
Leisure & Hospitality Services 38,489 39,097 1.6
Other Services 21,700 21,327 -1.7
Private Sector 366,787 371,656 1.3
Public Sector 80,325 79,627 -1.1

Federal & State Government 42,377 41,865 -1.5
Local Government 37,715 37,270 -0.6
Source: RESI compilation of DLLR data (2004Q2); modified in consultation with

Department of Finance and DLLR.
Tech jobs show little change overall

150
140
130
120
Index: 1990Q1=100
110
Montgomery Co.
100
90
Maryland
80
United States
70
60
50
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 51,000 high tech jobs in Montgomery County.
Source: RESI compilation of MD Dept of Labor, Licensing, and Regulation data (2004Q2), modified
in consultation with Montgomery County Department of Finance and DLLR.
4
Aerospace jobs steady after drop.

120
115
110
Index: 1990Q1=100
105
100 Maryland
95
90 Montgomery Co.
85 United States
80
75
70
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 14,700 aerospace industry jobs in Montgomery County.
Biotech grows 5%
300
280 Montgomery Co.
260
Index: 1990Q1=100
240
220
200
180
160
Maryland
140
120 United States
100
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 8,500 biotech industry jobs in Montgomery County.
5
County infocom jobs up 1.4%

160
150
140
Index: 1990Q1=100
130
120
110 Maryland
100 Montgomery Co.
United States
90
80
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 14,600 information technology and telecommunications
industry jobs in Montgomery County.
High tech mfg jobs fall by 500

200
180
160
Index: 1990Q1=100
140 Montgomery Co.

120
100
80 United States
Maryland
60
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 8,200 high tech manufacturing jobs in Montgomery County.

6
Business services up 2.2%

220
200
180
Index: 1990Q1=100
160 United States

Maryland
140 Montgomery Co.
120
100
80
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 95,600 business services jobs in Montgomery County.
Construction jobs up 3.3%

140
130 United States
120
Index: 1990Q1=100
110
Maryland
100 Montgomery Co.
90
80
70
60
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 29,400 construction jobs in Montgomery County.
7
Retail trade drops 900 jobs

130
125
120
Index: 1990Q1=100
115
110 United States
105 Maryland
100 Montgomery Co.
95
90
85
80
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 47,500 retail trade jobs in Montgomery County.
Health services follows US trend

170
160 Montgomery Co.
150 Maryland
United States
Index: 1990Q1=100
140
130
120
110
100
90
80
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 39,800 health services jobs in Montgomery County.
8
Real estate jobs climb 5%

125
120 United States
115
Index: 1988Q1=100
110
105
100 Maryland
95
90 Montgomery Co.
85
80
75
1990Q1
1990Q4
1991Q3
1992Q2
1995Q3
1996Q2
1997Q1
1997Q4
1998Q3
1999Q2
2000Q1
2000Q4
2001Q3
2002Q2
2003Q1
2003Q4
There are 12,100 real estate jobs in Montgomery County.
How well do the new jobs pay?
We track job growth by average salary to

show how well new jobs are paying:
• High: Industries with jobs that pay an
average of $50,000
• Medium: Industries with jobs that pay an
average of $30,000 to $49,999
• Low: Industries with jobs that pay an
average of less than $30,000
9
All wage categories show gain.

130
125 Low: 1.1%
120
115
High: 0.8%
Index: 1988Q1=100
110
Middle: 0.8%
105
100
95
90
85
80
1990Q1
1990Q4
1991Q3
1992Q2
1993Q1
1993Q4
1994Q3
1995Q2
1996Q1
1996Q4
1997Q3
1998Q2
1999Q1
1999Q4
2000Q3
2001Q2
2002Q1
2002Q4
2003Q3
2004Q2
There are 70,800 jobs in high-wage industries, 179,100 jobs in medium-wage
industries, and 121,700 jobs in low-wage industries in Montgomery County.
Revised jobless rate: 2.9%

4.5%
June 1992: 3.9%
4.0%
December 2004: 2.9%
3.5%
3.0%
2.5%
2.0%
1.5%
Jan 1988: 2.6%
1.0%
0.5%
Source: MD DLLR. Orange line represents latest “rebenchmarked” data.
0.0%
There are 15,700 unemployed persons in Montgomery County according to
latest (March 2005) revision to 2004 figures.
10
TCA caseload falls to 2,000

14,000
April 1995: 13,004
12,000
10,000
8,000
Nov 2004: 2,009
6,000
Jan 1986: 7,783
4,000
2,000
Source: MD DLLR
0
There are 2,009 recipients of temporary cash assistance in
Montgomery County.
Federal Government
Role
11
The federal government is a

major component of
Montgomery County’s economy
As an employer,
– About 64,000 workers are in federal space,
– In FY2003, the federal government paid $3.6
billion in wages to jobs in Montgomery County
As a tenant,
– The General Services Administration leases
7.0 million square feet of commercial space in
the County.
As a purchaser of goods and services,
– FY2004’s federal procurement was $6.1 billion
the County’s all-time high.
Federal expenditures in Montgomery

County worth $13.3 billion in FY2003
The federal government pumps billions of
dollars into the County’s economy.
$5.7 billion
$3.6 billion
$2.8 billion
$1.2 billion
Procurement Wages Direct Payments Grants
Source: Consolidated Federal Funds Report
12
Workers at federal installations are beginning

to increase due to FDA’s consolidation
Workers
90,000
80,000
70,000
60,000
50,000
Leased
40,000
Installation
30,000
20,000
10,000
0
1994
1996
1997
1999
2000
2001
2002
2003
2004
2005
2010
2015
2020
Between 2005 & 2020, jobs at installations are expected to
grow by 38 percent above current levels. Jobs in leased
Source: M-NCPPC analysis of
US government data space are expected to fluctuate between 21,600 and 24,800.
Federal leasing reaches 7 million sq. ft.

8,000,000
Square feet
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
84
89
94
96
97
99
00
02
03
04
05
19
19
19
19
19
19
20
20
20
20
20
Since 1994, GSA has leased between 6.0 and

Source: General Services 7.0 million square feet of commercial space in
Administration (GSA) Montgomery County
13
Health & Human Services

leases the most space
Other
11%
Health &
Nuclear Human
Regulatory Services
Commission 68%
5%
Dept. of
Commerce
16%
HHS & Commerce account for 84 percent of

Source: General Services the County’s federal leased space, 5.9 million
Administration (GSA) sq. ft. out of a total of 7.0 million sq. ft.
Rockville area is home to most

federal leased space
Other
Gaithersburg 4%
6%
Bethesda
15%
Rockville
57%
Silver Spring
18%
GSA leases 4.0 mil. sq. ft. in Rockville
(which includes most of North Bethesda),
Source: General Services 1.3 mil. sq. ft. in Silver Spring, and 1.1 mil.
Administration (GSA) sq. ft. in Bethesda.
14
Over 2/3 of GSA’s leased space

is up for renewal after 2008
1,800,000 sq. ft. of leased space by lease expiration year
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GSA’s leased space up for renewal in 2009
Source: General Services nearly doubled over the past year, increasing by
Administration (GSA) 551,000 sq. ft.
Where Is the County’s

Office Market Headed?
15
The real estate cycle provides a

framework for understanding
2001 Oversupply
Expansion
(Phase 3)
(Phase 2)
2000
Net Absorption
1997 2002
2003
1994 2004
2005 Recovery Recession
(Phase 1) (Phase 4)
Time
Sublet vacancy rates indicate

recovery
4.0%
3.5%
3.0%
Vacancy Rate
Recession
2.5%
2.0% Recovery
1.5% Recovery Oversupply
1.0%
0.5% Expansion
0.0%
Mar-95
Mar-96
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Mar-04
Mar-05
Source: CoStar Group, Property Professional Database, Analytical Search,

Historical Trends
16
The Washington, DC Region

Class A Office Market
The region’s vacant Class A

office space falls
25,000,000
1st quarter data, in square feet
20,000,000
15,000,000
10,000,000
5,000,000
0
2000 2001 2002 2003 2004 2005
Source: CoStar Group, Property Professional Database, Analytical

Search, Historical Trends
17
Vacant space in all regional submarkets

has decreased since 2004
25,000,000 Millions of square feet
20,000,000 13.8 13.4
9.5
15,000,000
Northern Virginia
10,000,000
4.1 4.7 3.7 Suburban Maryland

5,000,000
3.6 4.4 4.3 Washington, DC
0
1st Qtr 2003 1st Qtr 2004 1st Qtr 2005
Historical Trends
First quarter 2005 shows increase

of Class A office space absorption
4,500,000
1st quarter Class A office space
4,000,000 absorption, in square feet
MD
3,500,000
3,000,000
2,500,000 MD VA
2,000,000
1,500,000 VA MD
VA
1,000,000 VA
MD DC
500,000 DC MD
DC DC VA
0
DC DC
MD VA
-500,000 2000 2001 2002 2003 2004 2005

Search, Historical Trends
18
Suburban Maryland asking rents

more affordable
$50
Average asking price for Class A office space – first quarter
$45 Washington, DC: $44
$40
$35
Regional average: $32
$30
Northern Virginia: $28
$25 Suburban Maryland: $25
$20
$15
$10
$5
$0
2000 2001 2002 2003 2004 2005
Historical Trends
The Montgomery County

Office Market
19
County’s Class A office space

rents steady compared to Fairfax
$35
Montgomery County: $29
$30
$25
Fairfax County: $27
$20
$15
$10
$5
Average rent for Class A office space – first quarter
$0
19 19 19 19 19 20 20 20 20 20 20
95 96 97 98 99 00 01 02 03 04 05

Search, County snapshot
310,000 sf of Class A space absorbed

in 1st quarter 2005
800,000
600,000
400,000
200,000
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
-200,000
Montgomery County net class A office space absorption, in square feet

-400,000

County Snapshot
20
Less vacant Class A space available

in First Quarter 2005
35,000,000
30,000,000 1.0 0.5 Sublet vacant

1.1
1.0 3.5
2.5 Direct vacant
25,000,000 2.9
2.7
20,000,000
15,000,000
10,000,000 Occupied
21.6 23.2 24.4 26.1
5,000,000
0
2002 2003 2004 2005

Historical Trends
Vacancy rates return to 1995 levels;

Class C space has lowest rate
18.0%
C All types
16.0% C
14.0% C
12.0% C
C
10.0%
8.0%
6.0%
4.0%
2.0%
0.0% A BC AB C
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Historical Trends
21
About 490,000 sq. ft under

construction in First Quarter 2005
6
Montgomery County office space completed per
year in millions of square feet
5
4
2005: Under construction
2006: Proposed for completion
3
0
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Source: Completions: M-NCPPC Research & Technology Center; under construction and
proposed: CoStar Group, Property Professional Database.
Major Montgomery County Class A

Office completions in 2004
Project Square Ft. Submarket
Market Square @ Shady Grove 282,020 I-270 Corridor

8515 Georgia Avenue 183,000 Silver Spring
Washingtonian Center Phase II 145,805 I-270 Corridor
Shady Grove LSC Bldg. 3 115,691 I-270 Corridor
FASEB Office Bldg 55,000 Bethesda/Chevy Chase
MC Teachers Federal Credit Union 43,500 I-270 Corridor
Silver Spring Innovation Center 20,000 Silver Spring
Source: CoStar Group, Property Professional Database,

Property Search
22
Fewer projects under way in 2005

suggest developer caution
Development Square Ft. Submarket Expected
Delivery
Belward Campus Bldg II 54,000 I-270 Corridor June 2005
One Firstfield Place 19,740 I-270 Corridor December 2005
Chevy Chase Center 412,000 Bethesda/ May 2006
Chevy Chase
Source: CoStar Group, Property Professional Database, Property Search
Flex space: vacancy rates and

rents edge higher
Vacancy rates Rents
11.0% $18.00
$16.00
9.0%
$14.00
7.0% $12.00
$10.00
5.0%
$8.00
3.0% $6.00
$4.00
1.0%
$2.00
-1.0% $0.00
19
19
19
19
19
20
20
20
20
20
20
95
96
97
98
99
00
01
02
03
04
05

Historical Trends
23
Residential Market
Indicators Are Strong
Number of housing sales

continues strong trend
Number of housing sales
25,000
Condos Single Family Units
20,000
15,000 18,416
17,344
16,112 14,411 15,050
10,000 13,326
12,159 13,086
10,919
5,000
4,010 4,283 5,366

3,313 3,924 3,778
2,409 2,068 2,433
0
1996 1997 1998 1999 2000 2001 2002 2003 2004
Sales through 3rd Quarter 2004.

Source: MRIS. Includes sales of new and existing condominium
units and single-family attached and detached units.
24
Housing units continue

to sell quickly
Days on the market
111
55
45
29 26 27 27
1998 1999 2000 2001 2002 2003 2004
Sources: MRIS, COG, Preliminary data for 2004

Mont. Co. Dept. of Finance
2004 continues marked increase

in all single-family home prices
Median Prices New
$700,000 Detached
$600,000
Existing
$500,000 Detached
$400,000 New
Attached
$300,000
$200,000 Existing
Attached
$100,000
$0
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Source: M-NCPPC Research &

Technology Center Median prices through 3rd Quarter 2004.
25
Half of single-family homes sell

for over $380,000
$400,000
Median price of single-family home in 2004 was $380,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Technology Center Median prices through 3rd Quarter 2004.
Overall, housing is less affordable

Low interest rates help,
but price hikes continue to dominate.
1.8
Affordability Index for sales of all new and
1.6 existing condominiums. ($250 monthly CAF)
1.4
1.2
1
0.8 Affordability Index for sales of all new and
existing single-family homes
0.6
0.4
0.2
0
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
The higher the score, the more affordable the housing is.
A score of “1.0” means the monthly cost of buying
a median priced home equals 28% of gross median income.
Source: M-NCPPC Research & (Prices 3rd Quarter 2004.)
Technology Center
26
Existing townhouses still affordable

Affordability index
1.8
Existing Townhouse
1.6
1.4
1.2
New Townhouse
1
0.8
Existing Single Family
0.6
New Single Family
0.4
0.2
0
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
a home equals 28% of gross median income.
Technology Center (Prices 3rd Quarter 2004.)
Existing condominiums still affordable

Affordability index
1.8
1.6
1.4 EXISTING Condominiums
1.2
1
0.8
NEW Condominiums
0.6
0.4
0.2
0
2001 2002 2003 2004
Assumes a $250 per month Condominium Association Fee (CAF).

Source: M-NCPPC Research & a home equals 28% of gross median income.
Technology Center (Prices through 3rd Quarter 2004.)
27
Mortgage rates continued to fall
30 year fixed effective mortgage interest rate

12.0%
10.0%
Trend
8.0%
6.0%
4.0%
2.0%
0.0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Source: Federal Home Loan Bank
Board.
Apartment market not as tight,

with vacancy rates now over 5%
Vacancy rate
6%
5.1%
5% 4.4% 4.2%
3.7% 3.7% 3.8%
4%
3.0%
3% 2.5%
1.8%
2%
1%
0%
1996 1997 1998 1999 2000 2001 2002 2003 2004
Vacancy rate for all units –

Source: Montgomery County Office of market rate and subsidized, combined.
Landlord-Tenant Affairs
28
Rents continued upward trend
Monthly rent, in dollars $1,154

$1,200 $1,111
$1,076
$1,030
$928
$871
$900
$726
$600
$300
1998 1999 2000 2001 2002 2003 2004
Source: Montgomery County Office of Turnover rents

Landlord-Tenant Affairs
Major 2004 completions included:

In units
• Traville 312
• King Farm 262
• Overlook at Rossmoor 260
• Fallsgrove 260
• Clarksburg Town Center 217
• Silver Spring Metro Ctr (NOAA) 190

Technology Center
29
Multi-family units remain largest

share of home construction
8,000
7,000 Housing completions, in units.
6,000
5,000
4,000
3,000
Single-Family Detached
2,000
1,000 Townhouse
Multi-family
0
1988
1990
1992
1994
1996
1998
2000
2002
2004
Source: M-NCPPC Research & Housing completions totaled almost 4,300 units, down
Technology Center from almost 5,500 units for both 2002 and 2003
2.5 times more multi-family

approvals than single-family units
Single-family:
1,600 units
Multi-family:
4,224 units
Subdivision approvals by the Montgomery County Planning

Board and County municipalities. Source: M-NCPPC
Research & Technology Center
30
Acknowledgments
Montgomery County Department of Park and Planning
Charles R. Loehr, Director
Project Team
Karl Moritz, Acting Chief, Research and Technology Center

Krishna Akundi, Research Planner
Wayne Koempel, Research Coordinator
Sharon Suarez, Housing Coordinator
Other M-NCPPC Staff
Mary Goodman, Information Specialist
Other Contributors
David Platt, Montgomery County Department of Finance

Daraius Irani, Associate Director of Applied Economics, Towson University
John Hopkins, Research Associate, Towson University
Dana Hawkins, Research Associate, Towson University
MARCH 2005
Montgomery County
RESEARCH & TECHNOLOGY CENTER

MONTGOMERY COUNTY DEPARTMENT OF PARK & PLANNING

The Maryland-National Capital Park & Planning Commission: MCPB Item #3 March 31, 2005

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MCPB

THE MARYLAND-NATIONAL CAPITAL PARK & PLANNING COMMISSION

March 25, 2005

Economic Forces That Shape

Annual Update 2005

Research & Technology Center

The Maryland-National Capital Park & Planning Commission is a bi-county agency

The Commission has three major functions:

(1) The preparation, adoption, and, from time to time, amendment or

(2) The acquisition, development, operation and maintenance of a public park

The Maryland-National Capital Park & Planning Commission encourages the

Thomas E. Perez, President

The Maryland-National Capital Park & Planning Commission

Derick P. Berlage, Chairman

Montgomery County Prince George’s County

Derick P. Berlage, Chairman Elizabeth M. Hewlett, Chairman

Author: Montgomery County Department of Park and Planning

Subject: Economic Indicators of the Health of Montgomery County’s

Source of Copies: The Maryland-National Capital Park & Planning Commission

Date: March 2005

Abstract: Economic Forces That Shape Montgomery County is an annual

About Economic Forces That Shape Montgomery County........................................1

2005 Annual Update

Review of Selected Economic Indicators ..........................................................2

About Economic Forces That Shape Montgomery County

Developing the in-house expertise required to complete the Economic Forces

Review of Economic Indicators

Each annual update of Economic Forces That Shape Montgomery County

• Federal Impact: By far, the largest single influence on Montgomery County’s

About the Data

The High Tech Sectors: Holding Steady Following Declines

The number of high-tech jobs in Montgomery County remained unchanged

After two successive years of sharp decreases, the Aerospace industry in

In previous years, Montgomery County’s information technology and

High tech manufacturing in Montgomery County consists of companies

Other Major Sectors

“Business services” is a major component of the County’s economy, comprising

The highest-paying sectors (employing more than 500 people) in Montgomery

Federally Leased Space

Commercial Space Market

Rental housing vacancies continued to ease, according to the latest Office of

In 2003, residential completions dropped from two consecutive years at a pace of

Economic Forces That Shape

M-NCPPC Research & Technology Center

Notes on the data

M-NCPPC Research & Technology Center

Job growth themes

M-NCPPC Research & Technology Center

Total jobs increased by 4,000

Source: RESI compilation of DLLR data (2004Q2); modified in consultation with

Health services adds most jobs.

Public Sector 80,325 79,627 -1.1

Source: RESI compilation of DLLR data (2004Q2); modified in consultation with

M-NCPPC Research & Technology Center

Tech jobs show little change overall

There are 51,000 high tech jobs in Montgomery County.

Aerospace jobs steady after drop.

M-NCPPC Research & Technology Center

There are 8,500 biotech industry jobs in Montgomery County.

County infocom jobs up 1.4%

M-NCPPC Research & Technology Center

High tech mfg jobs fall by 500