Another corporate headquarters leaving Montgomery County for Virginia

Just weeks before the primary election, Montgomery County has lost yet another corporate headquarters to Northern Virginia. Spatial Front, a defense contracting firm, has announced it will be relocating from Bethesda to Crystal City. It will take 450 high-wage jobs with it. Spatial Front is a privately held firm founded in 2008 that specializes in artificial intelligence, machine learning, geospatial technologies, cloud services, and digital modernization for U.S. federal agencies.

Beyond the incredible tax advantages and superior infrastructure of Virginia, and the moribund economies of Montgomery County and Maryland, a person in the defense contracting field tells me that the new Maryland IT services tax may have been the last straw for Spatial Front. Beginning last July, Maryland’s Budget Reconciliation and Financing Act of 2025 instituted a 3% sales and use tax on data processing, computer systems design, and software publishing. As the Fort Meade Alliance warned Maryland elected officials, the IT tax could have the result of driving what's left of the defense contracting business out of the state to Northern Virginia. That's partly because the tax wallops companies operating under the NAICS 5415 code (Computer Systems Design), the industry group said, and could wipe out profit margins.

The Spatial Front departure again confirms all that I've been saying for years. Montgomery County and Maryland do not have competitive tax policies. In fact, Montgomery County has the largest total tax and fee burden in the Washington D.C. Metro area. All Northern Virginia counties enjoy direct access to Dulles International Airport, the only airport in the region that offers the frequency of flights to the largest variety of destinations that international businesspeople demand. Montgomery County, by contrast, has steadfastly refused to build the new Potomac River crossing that would extend I-370 to the Dulles area, an own-goal of increasingly-catastrophic proportions. And we also see the magnetism of winning these corporate headquarters. Crystal City has the Amazon HQ2, and companies want to be where the energy is.

To top off the irony of the loss, Spatial Front is moving into 2231 Crystal Drive, a building owned by Bethesda-based JBG Smith! "As Governor, I am proud that Spatial Front is moving its headquarters to Arlington," Virginia Governor Abigail Spanberger said in a celebratory press release announcing the victory. "The decision to relocate and bring hundreds of high-quality jobs to the Commonwealth reaffirms Virginia’s status as the nation’s premier location for defense and technology innovation. I remain focused on working with state and local partners to bolster that reputation, strengthen our business climate, and cement Virginia as the top state for talent so we can continue to openly welcome growing and expanding companies in every industry."

While Spanberger was closing the deal with Spatial Front, the Montgomery County Council was raising multiple taxes on its residential and business constituents, attending conferences at Hawaiian resorts, advancing a moratorium on data centers and an unconstitutional gun control bill, and passing a bill on the use of masks by law enforcement that violates the U.S. Constitution's Supremacy Clause. Doh!

Remember when Tennessee was sealing the deal after wooing Discovery away from Silver Spring, and the Montgomery County Council was simultaneously debating a ban on circus animals? Wow. Heckuva job, Brownie!

Sneak peek: Koala Kreme in Rockville

Koala Kreme is moving quickly to turn around the former Marble Slab space at 100-I Gibbs Street at The Square at Rockville. As you can see below, the frozen yogurt shop's interior fit-out has progressed significantly. Yesterday, Koala Kreme promised on Instagram to open in only two weeks, so expect them to maintain or even increase the pace of work. My only question is, are the milkshakes made with frozen yogurt or ice cream?

Aggravated assault with firearm in Rockville

Rockville City police responded to a report of an aggravated assault in the Burgundy Estates area early Saturday morning, May 30, 2026. The assault was reported along the street in the 900 block of Baltimore Road at 1:47 AM. A firearm was employed in the assault.

Potbelly "temporary closure" turns into months in Rockville

Nearly four months after announcing a temporary closure, the Potbelly at 199 E. Montgomery Avenue remains shuttered in Rockville. Initially, a message to customers posted in the window provided no information as to why the restaurant was closed. That sign has now been updated to state that flooding inside their building caused damage extensive enough to require a renovation of the restaurant. It could simply be that the extent of the damage only became apparent once remediation efforts began. So the good news is that they are going to reopen eventually, but the timeframe is still not known.

AI voice employed in kidnapping hoax in Rockville

Scammers employed an artificial intelligence-generated voice in an attempt to trick a Rockville resident into believing a family member had been kidnapped, Rockville City police allege. The fake relative called the victim in the 300 block of Hungerford Drive several times on May 21, 2026. A scammer, using the AI-generated voice of the family member, stated she had been kidnapped and directed the victim to pay an unspecified ransom amount. Police did not specify if the ruse was successful, or if any money changed hands.

Panera Bread closes permanently in Rockville Town Center

Panera Bread has permanently closed at 219 E. Middle Lane in Rockville Town Center. Customers are being directed to "other Rockville locations," including the Fallsgrove Village Center. I broke the news about Panera's shocking exit from this prime location back in February, when the property owner began marketing the restaurant's space for lease. The chain is closing underperforming locations as it undergoes a corporate reorganization.

Armed robbery at Burlington in Rockville

Montgomery County police responded to a report of an armed robbery at Burlington in Rockville Wednesday night, May 27, 2026. Two suspects entered the store at 12089 Rockville Pike at Montrose Crossing at 10:24 PM. One of them brandished a handgun. They proceeded to fill bags with merchandise, and left the store. Police have not released a description of the two suspects, and did not indicate how they managed to avoid appearing on the many surveillance cameras inside the store.