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Gaithersburg reports $5 million transportation tax tranche, low retail vacancy and stronger leasing in 2025
Summary
City staff reported receipt of a $5 million tranche of transportation development tax funds earmarked for shared-use paths, sidewalk gaps and bus shelters; economic development staff also reviewed 2025 commercial real‑estate trends, citing a 4.6% unemployment rate (November), an 11% office vacancy rate and strong leasing activity.
City Manager and economic development staff updated the mayor and council on municipal finances and local market conditions on Jan. 20.
The City Manager reported that Gaithersburg received the first tranche — approximately $5,000,000 — of transportation development tax funds to be used for capacity‑expanding transportation projects, including shared‑use paths, sidewalk gap projects and bus shelters. "We received $5,000,000, couple weeks ago for, the transportation development tax," the City Manager said, and added staff has programmed the funds and plans to apply them to priority projects.
Economic development staff presented 2025 data and leasing highlights. The presentation noted a 9.9% year‑over‑year decline in federal jobs across the Frederick‑Gaithersburg‑Bethesda metro area, the city's November unemployment rate at 4.6%, and that office vacancy held near 11% with increased leasing activity in 2025 (about 20 office leases totaling more than 500,000 square feet). The report also said retail vacancy remained low (rising from 0.7% in 2024 to 2.8% in 2025) and cited specific large leases and absorption in locations like Rio and Quince Orchard.
Separately, Anna Dudamel, the city’s senior program supervisor, accepted an $11,000 donation from the Kentlands Community Foundation to the Dolores C. Sawyer Camp Scholarship Fund, which Dudamel said helps enable more children to attend city summer camps. "This year's check to the Dolores C. Sawyer scholarship fund is for $11,000," she said.
Council members thanked staff and noted these updates as they plan upcoming capital work and community programming.
