Study: Gaithersburg should prioritize reinvestment and flexibility as growth slows

A market study presented to Gaithersburg City leaders on Jan. 12 concluded the city is shifting from an expansion phase to one centered on reinvestment and flexibility, and urged policies that favor modernizing existing centers over broad outward growth.

Tom Duretsky, vice president and director of research at Camoin Associates, told the mayor, council and planning commission the city will need roughly 565,000 square feet of retail space through 2040 driven largely by replacement and modernization, not household growth, while about 745,000 square feet is currently in the approved pipeline.

"The greatest long term value really comes from updating, repositioning, repurposing existing centers rather than adding retail in large quantities in entirely new locations," Duretsky said.

The study found current retail vacancy in the city is below 3 percent, a sign of strength but also a constraint because very low vacancy can limit tenant movement and slow reinvestment. Camoin recommended right‑sizing the pipeline by category because some segments—general merchandise and large‑format retail—face greater…