Leesburg EDC: flex-space shortage amid low commercial vacancy spurs zoning, permitting fixes

Leesburg economic development staff reported at the May 8 Economic Development Commission meeting that the town’s overall commercial vacancy is about 2.1–2.4%, but vacancy for “flex” space — single-floor, mixed-use buildings used by light manufacturing, technology and small production firms — is roughly 0.3%. Commissioners discussed zoning changes, targeted-industry incentives and faster permitting to encourage development that produces local jobs rather than primarily residential units.

The commission heard the vacancy figures during a staff report from Russell, an Economic Development staff member. Russell said the town’s aggregated commercial vacancy (industrial, retail, office and flex) sits a little over 2% and that Loudoun County’s comparable figure is “just over 4%.” He said the town’s industrial vacancy is effectively near zero in areas such as Cardinal Park, and that the tightest market is flex space: “The vacancy rate right now for that in Leesburg is point 3%,” Russell said.

That shortage matters, the commission was told, because developers frequently choose residential projects over commercial or flex development…