Leasing activity accelerates sharply in the second quarter, fueled by large industrial and flex transactions while retail demand remains strong in Frederick County, Maryland.

The Frederick County commercial real estate market recorded 37 lease transactions during the second quarter of 2026, according to CoStar data compiled by MacRo Ltd. Leasing activity more than doubled the first quarter’s pace and reflected continued strength across the industrial, flex, office, and retail sectors.

Unlike the first quarter, when office leasing accounted for the overwhelming majority of transactions, the second quarter produced a much more balanced mix of property types. Office properties generated 13 transactions, retail recorded 12, flex space accounted for 8, and industrial properties added 4 additional leases.

While office leasing remained active by number of transactions, the quarter was clearly driven by larger industrial and flex requirements. Collectively, the 37 transactions represented approximately 230,000 square feet of leased space.

The largest lease of the quarter occurred at 5941 Jefferson Station Court, where nearly 49,500 square feet of industrial space was leased. Other significant transactions included:

• 4255 Westview Drive – 41,102 SF (Flex)
• 4635 Wedgewood Boulevard – 33,150 SF (Flex)
• 605 East Church Street – 21,235 SF (Flex)
• 7315-A Grove Road – 15,278 SF (Industrial)

These larger transactions continue to demonstrate that Frederick County remains attractive to manufacturing, warehouse, technology, and service users seeking well-located space within the Interstate 70 and Interstate 270 corridor.

Retail leasing also remained healthy throughout the quarter. Twelve retail transactions were completed, with asking rents averaging approximately $30.74 per square foot. Several smaller storefronts leased at premium rental rates approaching $48.00 per square foot, reinforcing the continued demand for highly visible neighborhood and highway commercial locations.

Office leasing remained steady, although tenants generally continued to favor smaller suites. The average asking rent among reported office transactions measured approximately $24.66 per square foot, with lease rates ranging from approximately $13.00 to $48.00 per square foot, depending upon location, building quality, and whether leases were structured as Full Service or Triple Net.

Many of the industrial and flex transactions did not report rental rates, a common occurrence for larger negotiated leases where financial terms remain confidential. Nevertheless, the volume of leasing activity suggests that tenant demand for larger commercial spaces continues to outpace available inventory in several segments of the market.

Perhaps the most significant takeaway from the second quarter is the continued diversification of leasing activity. Rather than relying primarily on office users, Frederick County experienced healthy absorption across virtually every commercial property category. That broad-based demand reflects the county’s expanding employment base, strategic transportation network, and growing reputation as one of Maryland’s strongest suburban commercial markets.

As Frederick County continues to attract advanced manufacturing, logistics, technology, healthcare, and professional service firms, leasing activity such as this provides another indicator of the area’s long-term economic strength.

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 community for more than five decades and has served on numerous government, business, educational, and community boards. Through the MacRo Report, he provides ongoing analysis of commercial real estate trends shaping Frederick County’s future.