Commercial real estate market brokers and developers recorded 14 lease transactions in Q1 2026, led by a 25,452-square-foot industrial deal, while office space leasing dominated activity.

The Frederick, Maryland commercial real estate market recorded 14 lease transactions during the first quarter of 2026, according to CoStar data compiled by MacRo Ltd. The activity spanned office, retail, and industrial uses across the city and surrounding submarket, offering a useful snapshot of current leasing conditions.

Office space dominated the quarter’s activity, accounting for 12 of the 14 transactions. Deals ranged in size from a modest 750 square feet at Amber Meadows Professional Building on Thomas Johnson Drive to the quarter’s headline transaction — a 25,452-square-foot industrial lease at Wedgewood IV Building 3 on Geoffrey Way. That deal, signed by Atrronica Computers, stands as the largest by a wide margin and reflects continued demand for quality industrial space in the Frederick County submarket.

On the retail side, a 1,450-square-foot lease at 113-115 N. Market Street commanded the highest rent of the quarter at $40.00 per square foot NNN — well above the market average — underscoring the premium that well-located downtown retail space continues to attract.

Among office deals, asking rents averaged $14.19 per square foot with starting rents averaging $20.75 per square foot across the comp set. The majority of leases were structured on a triple-net (NNN) basis, though several larger office transactions — including deals at 5283 Corporate Drive and 5202 Presidents Court — were executed on a full-service (FS) basis at rates ranging from $21.40 to $25.50 per square foot.

Time on market varied considerably. Several smaller suites leased within three to six months of availability, while the 5202 Presidents Court transaction took 32 months to close and the Westview Boulevard deals at 5300 Westview Drive sat vacant for over a decade before finally trading at $12.50 per square foot NNN on five-year terms.

All 14 transactions were structured as new direct leases, with no sublease activity reported — a modestly encouraging sign for landlords navigating a market where overall office vacancy in the Frederick submarket sits at approximately 17.6%.

Rocky Mackintosh is President of MacRo, Ltd., a Land and Commercial Real Estate firm based in Frederick, Maryland. He has been an active member of the Frederick, Maryland community for more than five decades. Over the years, he has served on a number of committees and boards for local government, community organizations, education institutions and businesses.