Human BioSciences fleeing Montgomery County for West Virginia

The hits just keep on coming for Montgomery County. Its moribund economy took another cannonball to the gut yesterday. Human BioSciences announced it will be the latest company to move its corporate headquarters out of Montgomery County to a lower-tax jurisdiction in the region. It will move its current HQ from 940 Clopper Road in Gaithersburg to wild, wonderful West Virginia. 

The blow is an especially painful one for the County, as the biotech industry is the only bright spot in MoCo's private sector economy. According to the Maryland Department of Labor, all Human BioSciences employees are being offered positions at the new West Virginia facility, meaning that the taxable revenue of any MoCo residents leaving with the company will also be lost to the County's coffers.

It says quite a bit about the state of business in Montgomery County and Maryland that a biotech firm would leave. Remember, the County and State both provide financial incentives and tax breaks to the biotech sector, decisions made decades ago by smarter leaders that allowed for the creation of a strong life sciences presence in the I-270 corridor. In recent years, that strength has begun to weaken. It hasn't been helped when you have the state legislature and Governor Wes Moore wallop firms that are immersed in technology with a new 3% tech tax, as of July 1 this year. 

The tech tax is piled on top of the fact that Montgomery County already suffers from the highest tax and fee burden in the region. We've seen the results over this century, as companies like Discovery Communications have fled. Only a week ago, Rocket Money announced it was moving its HQ from Silver Spring to Washington, D.C. 

Meanwhile, Northern Virginia has been cleaning our clock, Hoovering up the corporate HQs of Northrop Grumman, Amazon HQ 2, Nestle, Corporate Executive Board, Hilton Hotels, Lidl, Gerber, Lego, Intelsat, CoStar, Volkswagen, Blackboard, and General Dynamics. This is the direct result of decisions made by failed leaders who have no clue about the world of international business circa 2025. Heckuva job, Brownie!

Rocket Money to flee Montgomery County for Washington, D.C.

The latest economic development defeat for Montgomery County is coming to us from one of the hardest-hit places in MoCo's revenue exodus, downtown Silver Spring. Rocket Money, a fintech startup located at 8455 Colesville Road, is nearing a deal to relocate its headquarters to Washington, D.C., according to a report in the Washington Business Journal. The new Rocket Money HQ is expected to be located in a recently-constructed office building at 1701 Rhode Island Avenue NW. Last home to a WeWork location, the building boasts "a unique facade constructed of pre-aged copper shingles, individually hand treated by an artisan in Italy," in the words of its architectural design firm Hickok Cole.

Silver Spring already sustained one of the biggest body blows to the Montgomery County economy in history, when one of the County's few remaining Fortune 500 companies, Discovery Communications, moved its headquarters to dual facilities in New York City and Tennessee. Infamously, Discovery's suitors quietly closed the deal while the Montgomery County Council was debating a ban on circus animals. The ban passed, but so did the opportunity to retain Discovery.

Of course, Rocket Money is not a Fortune 500 company, and has far fewer employees than Discovery. But it is a prominent fintech in the region, with significant future potential. Its parent company, Rocket Companies, has made the Fortune 500 in the past, but is currently off the list at #619 as of June. Montgomery County hasn't attracted a single new major corporate HQ in over a quarter-century.

Once again, Montgomery County's highest-in-the-region tax and fee burden has bitten the County in the [pocketbook]. Another recent and devastating blow is the new Maryland "tech tax," a 3% levy on all IT services in the state that was championed to passage by Governor Wes Moore, before he left for an Italian vacation at the lake villa of George Clooney. Imagine what that tax would add up to annually for a tech firm like Rocket Money! And that's on top of that already biggest tax burden, courtesy of the County Council and Maryland General Assembly. What company in their right mind would not move if they could? Heckuva job, Brownie!

French laser firm chooses Virginia over Maryland for U.S. headquarters

Say it isn't so! Montgomery County and Maryland have lost yet another economic development competition to Arlington County and Virginia. French laser firm Cailabs SAS wanted to move its U.S. headquarters out of Washington, D.C., but remain in the region. It announced yesterday that it had chosen the booming Rosslyn area of Arlington as the destination for the company's U.S. operations. Cailabs will move into 4,200-square-feet of office space at the gleaming Class A office building at 1530 Wilson Boulevard. The company will also add 16 new employees.

Many of Cailabs' employees hold PhDs, and the company has filed over 25 patents. It specializes in the design and manufacturing of advanced laser-light products for the defense, aerospace, telecommunications, and manufacturing industries. The Rosslyn location provides quick access to both Reagan National and Dulles International airports, as well as Metro and I-66. Montgomery County and Maryland could have had direct access to Dulles and I-66, but chose to cancel the new Potomac River crossing to Dulles, and the Northwest Freeway, which would have connected to I-66 in Rosslyn. Doh!

Virginia Governor Glenn Youngkin toasted his victory Wednesday, as Maryland Governor Wes Moore was declared America's "most-disappointing governor" by economist Anirban Basu, and Moore's chief-of-staff jumped ship as the state's fiscal crisis continues to slam up against its moribund economy and high crime. With plummeting poll numbers, Moore could only look on with envy, in the reflection of fellow White House aspirant Youngkin's stunning laser light show across the Potomac.

“Cailabs’ decision to relocate their U.S. headquarters to Virginia shows that the Commonwealth remains the premier location for global tech companies looking to expand their footprint in the Americas,” Youngkin said in a statement yesterday. “Virginia’s exceptional talent, reliable infrastructure, and proximity to key federal and defense partners gives companies like Cailabs a strategic advantage as they continue to innovate and expand. The Commonwealth is proud to support Cailabs’ mission of paving the way to a bright future with the power of lasers.” 

“When Cailabs first decided to open a U.S. office, they chose Washington. Two years later, when they decided to stay in the US, they chose Virginia. That decision speaks volumes,” said Secretary of Commerce and Trade Juan Pablo Segura. “Logistically, economically, and strategically, Virginia remains the ideal location for tech companies looking to push boundaries and build a thriving business.” 

“Arlington cordially says ‘Bienvenue’ to Cailabs on their decision to establish their U.S. headquarters in Rosslyn, at the heart of our nation’s capital region,” Arlington County Board Chair Takis Karantonis said. “By choosing Arlington, Cailabs joins a community where the nation’s best-prepared, innovative and talented workforce meets exceptional quality of life in an open, welcoming and forward-thinking culture. We are excited to add a leading new technology business to the dense fabric of transatlantic partnerships that connect, strengthen and advance economies, people and values. We look forward to seeing Cailabs grow and succeed here in Arlington.” 

“I’m delighted that Cailabs has chosen to relocate its U.S. headquarters to Arlington County,” said Senator Barbara Favola. “Arlington has leveraged the investments made by the Commonwealth to create a 21st century workforce. In addition to proximity to major airports and our nation’s capital, Arlington offers a world class public education system, great transit options, and a park in every neighborhood. I am sure that Cailabs will feel ‘right at home’ in the diverse and caring Arlington community.” 

Rheinmetall chooses Virginia over Maryland for U.S. corporate HQ

Montgomery County and Maryland are experiencing another total humiliation on the economic development front. While both have failed to attract a major new corporate headquarters this century, Fairfax County and Virginia have just beaten them once again in the high-stakes contest for yet another major defense firm HQ. This time it is Rheinmetall, the German defense giant that is experiencing off-the-charts boom times, as it is arguably the biggest winner in Germany's push to rearm and create Europe's largest and strongest military. It is also one of the companies producing the most equipment for Ukraine in its war with Russia. Rheinmetall has just leased 10,000-square feet at Metro Place II at 2600 Park Tower Drive in Merrifield in Fairfax County, where it will not only locate its U.S. hub, but also one of its U.S. subsidiaries, American Rheinmetall Munitions, Inc.

Beyond the lighter tax and regulation burden of Northern Virginia, a look at the 2600 Park Tower Drive site itself tells much of the tale of Montgomery County's loss. Metro Place II sits directly beside the highway interchange of the Capital Beltway and Interstate 66, along both of which Virginia has invested enormously in tolled Express Lanes. The Dunn Loring-Merrifield Metro station is directly across the street from the new Rheinmetall HQ. Just south of the site are US 29 and US 50, as well as the enormously-successful Mosaic District with its retail, restaurants, and movie theater. 

A short drive southeast of the new Rheinmetall HQ in Fairfax is perhaps Montgomery County's biggest and most-humiliating economic development loss to Northern Virginia of this century, the Northrop Grumman headquarters. And zooming out on the map, we find one of the biggest factors that brought both defense firms to Fairfax County: direct access to Dulles International Airport. It's the only airport in the region to boast the variety of essential global business destinations - and the frequency of direct flights to them - demanded by international business executives.

One can only shake one's head, and wonder what could have been, had Montgomery County and Maryland had smarter and more-competent leadership this century. Imagine if we had built the new Potomac River crossing, to give all of our increasingly-empty office parks in the I-270 corridor the same kind of direct access to Dulles that Virginia has. Imagine if we had built the Rockville Freeway through North Bethesda, White Flint, Aspen Hill, and Layhill, connecting I-270 with MD 355 and the InterCounty Connector, and passing directly by the many Executive Boulevard area office parks and Pike & Rose. Imagine if we had made our tax and fee burden more competitive with our rivals in the region, and our leaders had used the time they spend opining on national politics on attracting business to our county and state.

Virginia doesn't have to imagine. It's where economic development dreams regularly come true, thanks to the humiliatingly-weak and bumbling efforts on our side of the river. Montgomery County? It's where business goes to die - or flee to nearby jurisdictions before it does.

"We are proud to welcome Rheinmetall to Merrifield in Fairfax County," Fairfax County Board of Supervisors Chairman Jeffrey C. McKay said in a statement. "Our community is a place where groundbreaking innovation, national security, and global collaboration intersect, and this investment represents a powerful statement about the future of defense and technology in our region. Rheinmetall brings a bold vision and cutting-edge capabilities that align with our community’s commitment to supporting mission-driven industries and advancing solutions that keep our nation secure. We are deeply honored that Rheinmetall has chosen Fairfax County as the hub for their continued growth, as this investment will not only strengthen the strategic national security partnerships that are so vital to global progress, but also the resiliency of our local and regional economies."

"Rheinmetall’s decision to establish significant presence in the Merrifield area of Fairfax County reinforces our position as a premier destination for global defense leaders seeking proximity to federal partners, a deep bench of tech talent, and a collaborative business environment," Fairfax County Economic Development Authority President and CEO Victor Hoskins said. "The opening of our new Washington, D.C., region office spaces underscores our rapid growth and committed investment in Rheinmetall’s U.S. operations," American Rheinmetall Defense CEO Stephen Hedger added.

Virginia wins AstraZeneca megafactory over Maryland

"There's going to be so much losing, you'll get tired of losing." We're definitely tired of losing in Montgomery County and Maryland, but Virginia just handed us another big L. Pharmaceutical giant AstraZeneca has announced it plans to build its largest global drug manufacturing facility yet in Virginia. The loss is even harder to take when you consider that AstraZeneca already has a substantial presence here in Montgomery County. How did we lose this one?

AstraZeneca's announcement is the latest victory for President Donald Trump's trade strategy, which is in part designed to bring jobs back to America. GE Appliances recently announced it would relocate some of its China manufacturing footprint to the massive factory complex at Appliance Park in Louisville, Kentucky. AstraZeneca's move is to avoid high tariffs Trump proposed for drug imports. 

Montgomery County isn't a total loser in the $50 billion investment AstraZeneca plans to make in the U.S. over the next five years: the company said it also plans to expand its Gaithersburg manufacturing facility, and to add a cell therapy manufacturing facility in Rockville. But it's simply cheaper to do business in Virginia, and the Commonwealth is quickly catching up in the regional biotech race, which has been the sole bright spot in Montgomery County's otherwise-moribund economy.

“I want to thank AstraZeneca for choosing Virginia as the cornerstone for this transformational investment in the United States,” Virginia Governor Glenn Youngkin said in a statement. “This project will set the standard for the latest technological advancements in pharmaceutical manufacturing, creating hundreds of highly skilled jobs and helping further strengthen the nation's domestic supply chain. Advanced manufacturing is at the heart of Virginia's dynamic economy, so I am thrilled that AstraZeneca, one of the world's leading pharmaceutical companies, plans to make their largest global manufacturing investment here in the Commonwealth.”  

“Today’s announcement underpins our belief in America’s innovation in biopharmaceuticals and our commitment to the millions of patients who need our medicines in America and globally,” AstraZeneca Chief Executive Officer Pascal Soriot said. “It will also support our ambition to reach $80 billion in revenue by 2030. I look forward to partnering with Governor Youngkin and his team to work on our largest single manufacturing investment ever. It reflects the Commonwealth of Virginia’s desire to create highly skilled jobs in science and technology, and will strengthen the country’s domestic supply chain for medicines.” 

Loudoun County wins ORBCOMM HQ over Montgomery County

Another economic development loss for Montgomery County and Maryland is in the books. Not surprisingly, the winner in the latest contest for a corporate headquarters is once again Northern Virginia. ORBCOMM, Inc., currently headquartered in New Rochelle, New Jersey, has announced it will locate its global HQ in Sterling, Virginia, in Loudoun County - not Montgomery County, Maryland. The "internet of things" company is focused on products and services that track, monitor, and control industrial assets around the world. It operates its own network of 31 low-Earth-orbit (LEO) satellites. ORBCOMM's clients include Walmart, Caterpillar, Hitachi, Target, Tropicana, Tyson, and Canadian National Railways.

"Virginia is proud to welcome ORBCOMM’s global headquarters to Virginia," Virginia Governor Glenn Youngkin said in a statement. "This decision highlights our commitment to innovation, workforce development, and creating an environment where advanced industries can thrive. We look forward to the economic opportunities and technological leadership ORBCOMM will bring to the Commonwealth."

"As we welcome ORBCOMM's headquarters to Sterling, I wanted to express my sincere gratitude for the significant economic impact this expansion brings to Loudoun County and the Commonwealth," Virginia State Delegate Atoosa R. Reaser said. "The creation of new jobs is a welcome development and will undoubtedly contribute to the prosperity of our community," said Delegate Atoosa R. Reaser.

Montgomery County has failed to attract a single major corporate headquarters in over 25 years. The County, and Maryland as a whole, have forgone massive amounts of potential tax revenue rather than adopt more competitive, business-friendly policies and tax rates. They have also refused to construct a new Potomac River crossing to the Dulles area that has been on the books for decades, which would provide direct access to the only local airport with the frequency of flights and variety of international business destinations that corporate executives demand. Once an economic engine of the Washington, D.C. region, Montgomery County's economy today is moribund, and the County has become a bedroom community for booming job centers elsewhere in the region.

BioNTech layoffs ahead at Montgomery County facility

BioNTech announced it will lay off 63 employees at its manufacturing facility in Gaithersburg on August 9, 2025. The German pharmaceutical firm acquired the facility in 2021, riding the company's financial boom from COVID-19 vaccine profits at the time. But expectations that Americans would line up once or more per year for COVID booster shots for the rest of their lives proved a mirage. 

Contrary to government declarations, the vaccine did not prevent the recipient from contracting the virus. And reports of vaccine injuries, increasing vaccine skepticism, and the Biden administration's 2022 declaration that "COVID is over" proved to be the final nails in the vaccine coffin. 

The failure of one of BioNTech's new cancer treatments in testing earlier this year was apparently the last straw, as the company has now chosen to not pursue that product line any further. BioNTech's announcement was a body blow to Montgomery County and Maryland elected officials. Biotech is the only real bright spot in the otherwise-moribund Montgomery County economy, which has failed to attract a major corporate headquarters in over 25 years, and is at, or near, rock-bottom in the region by every relevant metric of job creation, new business starts, and business growth, according to the U.S. Bureau of Labor Statistics.

Montgomery County, Maryland leaders embrace their downscale future

The respective moribund economies of Montgomery County and Maryland have experienced the whiplash of rapid downscaling over the first quarter of this century. As Montgomery County fell behind even Prince George's and Culpeper Counties in job creation, dropped off the Forbes 10 Richest Counties list, and saw "Montgomery County's Rodeo Drive" fade into empty storefronts and smashed-out bus shelters, the same cartel candidates kept getting reelected. They've radically recalibrated their messaging for these bleak and desperate times by embracing the lowbrow lifestyles they once condemned. Last week, Maryland Gov. Wes Moore joined them by announcing the only economic development victory of his term so far: the addition of 4000 McDonald's fast food restaurant jobs.

At first, many thought Moore's press conference was a stunt by The Onion. Karine Jean-Pierre might have referred to the livestream video as a "cheapfake." But it was all humiliatingly real. There stood the governor whom the media assured us in 2022 was a Wall Street wizard, and who fundraises for his political campaigns among financial oligarchs in the Hamptons and on Martha's Vineyard, touting burger flipping jobs as if he had won Amazon's HQ2 contest.

One wonders who is advising the governor these days. The Golden Arches press event only underlined what a failure Moore has been so far in attracting high-wage jobs and major corporations to the state. Surely his Rolodex must be bursting with corporate titans. Are they that convinced that Moore is such a poor leader and salesman, that they are unwilling to invest in Maryland, even while they imagine what Moore will do for their investment portfolios and offshore accounts as President of the United States in 2029?

Public reaction to the McDonald's "partnership" was decidedly disastrous. Incredulous, mocking tweets and memes populated social media timelines. Serious observers wondered why a future President of the United States, and current executive of a state, would be holding a press event more suggestive of a small town mayor rolling out a summer jobs program for disadvantaged youth. Mayor McCheese, perhaps.

Moore, who stresses his physical fitness at every Instagram opportunity, joined the Montgomery County Council in embracing a junk food future. As they have managed the decline that they themselves have brought about, the Councilmembers have done a 180 on health and fitness. A Council that once banned trans fats, forced fast food restaurants to post calorie counts, and even tried to adjudicate which products could be sold in vending machines in the county now has to promote a much different lifestyle.

Much like their flip-flop on natural gas - once calling it the clean fuel of the future, but more recently banning gas stoves and furnaces - the key for the Council is holding onto power, not ideological consistency. 

Montgomery County hasn't attracted a major corporate headquarters in over 25 years. It hasn't attracted many high-wage jobs at all, compared to Northern Virginia. Where the economic activity in Montgomery County is these days is a far cry from cutting the ribbon on Amazon HQ2 in Arlington or christening the new Northrop Grumman HQ in Falls Church. In the last few years, the Montgomery County Council has found itself holding giant pairs of shears outside of...mega gas stations and convenience stores.

Having warned voters of our leaders' incompetence for years, and now watching all of my predictions sadly come true...and being a huge fan of McDonald's...and watching the same Council that once raided a Wendy's and condemned the Baconator now spending the taxpayers' dime promoting Slurpees and Sizzli sandwiches, I have to say, "I'm lovin' it!"

A governor and County Council who should be asking questions like, "Where did we go wrong?" "Maybe we should cut taxes and spending instead of raising them?" or "Will you PLEASE move your Fortune 500 company to Montgomery County?" are instead asking, "Do you want fries with that?"

Virginia added more than twice as many jobs as Maryland in March

The economic development broken record played the same tune yet again in the Washington, D.C. region last month. Virginia destroyed Maryland in job creation once again, adding more than twice as many jobs in March 2025, according to the U.S. Bureau of Labor Statistics. Maryland added 2,300 jobs, while Virginia added 5,900 jobs. 

March's job creation numbers show Virginia's economy remained far stronger than moribund Maryland's in a month where both states were impacted by federal job cuts. The total number of actual federal positions lost remains murky, as legal injunctions or orders to rehire workers have followed many of the "DOGE" layoffs.

"This job growth reflects businesses hiring as Virginians continue to find opportunities," Virginia Governor Glenn Youngkin said in a statement. "Virginia has jobs, and we’re committed to strengthening the business environment so that everyone can find a path to success right here in the Commonwealth."

Watkins Cabinet Co. closes after 73 years in Montgomery County, property for sale

Watkins Cabinet Company has closed at 18001 Sellman Road in Dickerson, after 73 years in business. Its 14,884-square-foot factory and warehouse facility has been put on the market for sale. This is a prime 1.43-acre property for an industrial/manufacturing use, as it is right on the CSX Metropolitan Subdivision tracks, part of a major freight and Amtrak route between Washington, D.C. and Chicago. That creates the opportunity for direct freight rail shipping across the nation, or to ports in Baltimore and Norfolk. 

I have suggested for many years that Montgomery County sit down with CSX and try to create attractive industrial sites alongside the railroad. This could be for the manufacture of anything from furniture to pharmaceuticals to drones. In exchange for the new freight business, CSX might then cooperate for the additional track that has been sought for use by MARC commuter rail on this line. According to the online sale listing, the asking price for the Watkins Cabinet property is $2,000,000. If Montgomery County is serious about getting the third track, these are the types of opportunities they should be investigating in partnership with CSX. Even without a third track, moribund Montgomery County needs the business and high-wage job growth.

Wilbur Watkins founded Watkins Cabinet Company in 1952. It remained family-owned for all 73 years. You might have a Watkins cabinet, vanity, bar, or bookcase in your home right now, if you live in the Washington, D.C. region.

Photos courtesy Brian Jamison Real Estate

Virginia beats Maryland in January job growth

Virginia hammered Maryland in job growth once again in January 2025. According to the U.S. Bureau of Labor Statistics, Virginia added 7,100 jobs in January, while Maryland only created 4,900. The BLS also revised Virginia's numbers from December upward, with the Old Dominion's jobs-added figure rising from 4,900 to 14,200. Maryland had infamously only gained a paltry 200 jobs in December.

“More Virginians are working than ever in the Commonwealth as jobs and opportunity continue to expand in Virginia,” Virginia Governor Glenn Youngkin said in a statement Tuesday. “In January, the Commonwealth added 7,100 nonfarm jobs, building on the upwardly revised job gains in December. This performance underscores the success of our pro-business policies and our ongoing focus on workforce development, which are providing Virginia companies the talent they need to grow and Virginians with the opportunities to succeed.” 

Argan moves corporate HQ from Rockville to Arlington, Virginia

Montgomery County has lost yet another corporate headquarters to Northern Virginia. Argan, Inc., announced yesterday that it has relocated its HQ from 1 Church Street in Rockville to Two Liberty Center in Arlington. The telecommunications and power industry service provider was founded in Rockville over two decades ago. Argan cited the new location's direct access to Dulles International Airport as one of the primary reasons for the move. The firm's stock price doubled, and surged 33% in two days at one point in 2024, and is up about $10 since then, to $104.05 as of this morning.

It's no surprise that Argan, like so many companies, is heading for greener pastures across the Potomac. Montgomery County and Maryland leaders have defiantly refused to construct the long-planned bridge across the river that would provide our own direct connection between the I-270 corridor and the Dulles area. Dulles is the only airport in the region that provides the frequency and variety of direct flights to global destinations demanded by international businesspeople. And let's fact it: Virginia's lower taxes, fewer regulations, and status as CNBC's "Top State for Business in America" certainly didn't hurt. 

Northern Virginia has other advantages for a firm that primarily deals with power plants and telecommunications infrastructure. Maryland leaders have forced the closure of 8 power plants since 2012 alone, and the state is now forced to import 40% of its electricity from out-of-state at higher prices to avoid rolling blackouts. 70% of internet traffic around the globe flows through data centers in Northern Virginia. And the Old Dominion has invested far more in highway, air transport, railroads, and ports than Maryland. It's no wonder Montgomery County has failed to attract a single new major corporate HQ in over 25 years.

"We are thrilled with the move to our new headquarters location in Arlington, Virginia," Argan CEO David Watson said in a statement. "We believe the location and layout will accommodate the Company’s continued growth, improve recruitment and retention of employees, and facilitate greater collaboration and a more productive overall work environment. The Washington metro area has a dynamic and robust economy with a quality workforce, and we look forward to leveraging our new location to enhance the experience of Argan’s current and future employees, partners and customers. The Company’s more than 22 years in Rockville, Maryland where Argan was founded, have been both meaningful and productive, and we look forward to continuing our success in our new home in Arlington."

Montgomery County goes green...with envy of Loudoun County

The Montgomery County Council is all-but-certain to hike property taxes on residents again in the fiscal year starting this July. They've done it every year in recent times, except for a paltry average $12 "tax cut" in the election year of 2014. By contrast, Loudoun County, Virginia across the river will be delivering a property tax cut to residents there this year. The difference? Not only more business growth and jobs created than Montgomery County over the last decade, but its new position as "data center capital of the world," The Washington Post reported earlier this week.

A shocking new statistic emerged in the Post report on the budget situations in the five biggest counties in Northern Virginia. Loudoun County's data centers generate a full 38% of that county's total revenue. Data centers are often criticized for representing very few jobs, as staffing is minimal at each. But they clearly generate bigtime revenue.

Of course, these data centers require massive amounts of electricity, something Montgomery County and Maryland lack because our elected officials ordered the closure of 8 coal-fired power plants across the state since 2012. High-wage jobs are something else MoCo lacks, as it has failed to attract any new major corporate headquarters in over 25 years. Heckuva job, Brownie! 

While I would rather see an aerospace research facility, or a major defense firm headquarters fill our underutilized and vacant office parks, imagine if there was a data center on each of the office properties among those that have been converted to luxury townhomes in recent years. Residential housing is a revenue loser for the County, as our structural budget deficit proves. Data centers are a revenue winner, as homeowners in Loudoun County will be delighted to tell you, when they receive their FY-2026 property tax cut.

BigBear.ai moves HQ from Maryland to Virginia

Oh, no, not again! Moribund Maryland has just lost yet another corporate headquarters to Virginia. BigBear.ai has moved its HQ from Columbia, Maryland to a Class A trophy office building in Tysons, Virginia, The Business Journals reports. Its new address is the Valo Park building at 7950 Jones Branch Drive. The move caps off a month of great news for the company and its investors. It not only picked up coveted new contracts from the Army and Navy, but hired a new CEO who was a high-level adviser to President Donald Trump, giving it an edge in any DOGE-sizing at the Pentagon.

Valo Park not only enjoys easy access to I-495, but its website notes it is only a 15-minute drive from Dulles International Airport. No Montgomery County or Maryland business can make that claim, as leaders of both jurisdictions for decades have blocked construction of the long-planned I-370 Potomac River crossing to the Dulles area. Montgomery County hasn't attracted a single major corporate headquarters in over 25 years, and Maryland's record is about the same. Both have lost many HQs to Virginia, among other states, and now the trend continues to play out. Tysons is the happening place to be; you can feel the energy just driving through on the Beltway, among all of the neon corporate logos that light up the night. Montgomery County is Sleepy Town, a bedroom community for the booming job centers elsewhere in the region - such as Tysons!

The loss of BigBear.ai is particularly humiliating for Maryland, as Governor Wes Moore has stated that artificial intelligence is one of the key economic sectors he wants to grow. Alas, Maryland not only has much higher taxes, but much less electricity generation capacity, after the Democrat-controlled Maryland legislature forced the closure of 8 coal-fired power plants. They apparently were unaware that artificial intelligence requires massive amounts of energy. Virginia has that capacity, while Maryland has to import expensive electricity from out-of-state at boardwalk prices just to keep the lights on. We're being governed by very stupid people, folks. Heckuva job, Brownie!

Montgomery County to lose more jobs to housing in Rockville

Another valuable Montgomery County office park property could be lost to residential housing, if the City of Rockville approves a proposal to convert it into condos and townhomes. 1455 Research Boulevard, one of many office sites located in the I-270 corridor of the County, would become 106 townhomes, 30 stacked condo townhomes, and 72 multifamily condo units, under the plan envisioned by developer Pulte. The company is building several similar developments in the City, including within the new Farmstead community, as well as in the King Farm, and Tower Oaks areas. Pulte's site plan is likely to be reviewed at a public hearing by the Rockville Planning Commission in summer or fall of 2025.

The existing office building, which was only constructed
about 30 years ago

The existing office building contains 17 office suites, 10 of which are currently leased, according to the property website. So the building is 59% leased. The property is 10.6 acres in size, meaning that it would still be ideal for a corporate headquarters, or a research, lab, and/or manufacturing facility, if the existing building were torn down for that purpose. It is directly adjacent to I-270. To state the obvious, all of the jobs currently provided by the current tenants of the building will likely be lost to the City and County in a conversion to housing. And the many more potential, high-wage jobs that could fill this office park site - and the resulting revenue - will never be realized.

Pulte's proposed redevelopment plan
for residential housing

From a County revenue standpoint, filling the current building, or replacing it with a major corporate headquarters or facility, would be more ideal than filling the site with residential housing. That's because residential housing, as we have seen this century, generates more costs in County services and infrastructure demands than it does in tax revenue. Hence the County's structural budget deficit, which extends as far into the future as the forecasts go. And do you remember "smart growth," which included placing jobs near housing, to reduce congestion and auto emissions in the I-270 corridor? Neither do the County Council and Planning Board, which don't even talk about "smart growth" anymore, having abandoned its fictional, expedient construct for the equally-fictional canards of "affordable," "attainable," "equity," "inclusionary," and "missing middle" - all code words bandied about in a nationwide campaign to allow upzoning for higher-density luxury housing in existing suburban neighborhoods.

Office, research, manufacturing and commercial uses, in contrast, generate less traffic and require no additional school capacity, for example. The problem is that the Council has driven the County's economy into the ditch over the last 23 years, through radical anti-business policies, and a failure to provide the necessary infrastructure to compete with Northern Virginia, such as direct highway access to Dulles International Airport via a new Potomac River crossing. Montgomery County has not only lost every competition for major corporate headquarters to Virginia during this time, but is most often not even in the hunt for these opportunities.

As a result, Montgomery County has failed to attract a single major corporate headquarters in over 25 years. While MoCo leaders slumbered this century, Virginia added the HQs of Northrop Grumman, Intelsat, Hilton Hotels, Nestle, Lidl, Gerber, Volkswagen, Corporate Executive Board, Amazon HQ2, CoStar, Lego, and more. And those are just ones we lost to Virginia! 

Montgomery County has been left to spend large sums just to retain some of the HQs it had, like Marriott International, Choice Hotels, and GEICO, all of which have downsized when making their moves. In addition to such rearrangements of the deck chairs aboard the Titanic, Montgomery County has lost still other HQs that it had altogether. While the Council argued about the legality of circus animals one week last decade, representatives of New York City and Knoxville were completing final, secret negotiations that sealed their victory in snatching away the Discovery Communications HQ from downtown Silver Spring.

Obviously, property owners such as those at 1455 Research Boulevard can't be blamed for all this. They, understandably, are not going to simply wait for a future ousting of the Montgomery County cartel from power to maximize their investment. So we are likely to end up with more residential housing at this site. The Council is not sad about that, as their developer sugar daddies want them to keep Montgomery County bad-for-business, so that prime office park sites can become residential housing sites instead. Virginia prepares and markets such office/industrial properties extensively to international businesses, and reaps the spectacular results; Montgomery County just waits for someone to build housing on them. Too bad that Montgomery County residents will continue to shoulder the increasing tax burden to make up for all of this lost business and commercial revenue. Heckuva job, Brownie!

Majority of Maryland residents have considered leaving the state, poll finds

The University of Maryland Baltimore County continues to drop new results from its recent poll of Maryland residents, and the hits just keep on coming for the state's struggling and inept elected officials. Yesterday's release showed that a majority of the residents polled have considered moving out of Maryland to another state within the past year. A full 53% said, yes, they have considered leaving Maryland in the next few years.

Montgomery County has seen a flight of the rich to lower-tax jurisdictions in the region this century, and those expats have taken millions of dollars in tax revenue with them. There were no longer enough high-end shoppers to sustain the stretch of Wisconsin Avenue in Friendship Heights that was once touted as "Montgomery County's Rodeo Drive," leaving behind rows of empty storefronts. Maryland experienced a similar exodus after passing its "Millionaires' Tax" in 2012, only to find that 1000 millionaires had fled the state just two years later.

54% who were interviewed by UMBC said Maryland is a "poor or fair" place to start a business. That's not surprising, given that 67% of respondents also agreed that the state's economy is moribund. 

Maryland not only has gained a terrible reputation as an anti-business state internationally, but is increasingly seen by aging residents as a terrible place to retire, as well. The largest group of respondents, 37%, said Maryland is a "poor" state to retire in. 64% concluded that Maryland is a "poor or fair" retirement destination. Again, not very surprising, as increasing numbers of retirees leave Maryland behind for Delaware or Florida.

Almost half of those polled said Maryland is a "poor or fair" state to seek a K-12 education in. That's quite a drop from two decades ago, when Maryland's schools were seen as among the best in the nation. Only 11% believe Maryland is an "excellent" place to find a job. Well, you can't blame them: most of the jobs that give Montgomery County and Maryland low unemployment rates are actually located in Northern Virginia and Washington, D.C.

67% of residents agree Maryland economy is moribund

Last decade, this website was a lonely voice in the media landscape warning that the economies of Montgomery County and Maryland were moribund. Since 2018, powerful voices such as the editorial board of The Washington Post, two-time County Executive candidate David Blair, and even Maryland Governor Wes Moore have reached the same conclusion. Now, an overwhelming majority of Maryland residents are also saying the state's economy has stagnated. 67% of residents polled by the University of Maryland Baltimore County declared Maryland's economy as "poor" or "fair." Results of the poll were released Tuesday by UMBC.

49% of residents told pollsters that Maryland is "on the wrong track." 62% are concerned about the amount of taxes Maryland residents pay. That's not a major shock, as Maryland is one of the states with the highest tax burden in America, and Montgomery County has the highest tax and fee burden of any jurisdiction in the Washington, D.C. area. 77% of residents want lawmakers to focus on crime, but would probably be surprised to learn that the only crime bills likely to pass in the current session of the state legislature will loosen up on criminals, instead of cracking down.

Virginia's air-sea-land logistics advantages over Maryland to expand even further

A new interview with Eric Jehu, Vice President of Logistics for the Virginia Economic Development Partnership (VEDP), for a Business Facilities magazine podcast sheds more light on that state's overwhelming infrastructure advantages over Maryland, and provides a preview of the Old Dominion's near-term plans to expand that edge even further. The magazine named Virginia as its 2024 State of the Year, following CNBC’s declaration of the Commonwealth as "America’s Top State for Business 2024." According to the U.S. Bureau of Transportation Statistics' latest report on ports published last month, the Port of Virginia ranks 9th in total tonnage of all American ports; the Port of Baltimore ranks 16th. Among ports handling over 1000 TEUs (a standard cargo container size) per year, the Port of Virginia ranks 6th, while the Port of Baltimore is 15th.

Why does the Port of Virginia enjoy such greater volumes of cargo? Its shipping channel is "the deepest and widest on the coast, to accommodate the largest of the largest container vessels that are operating in the marketplace today, and as well as [the container ships of] the future," Jehu says. The port's cranes are capable of reaching "all the way across those very wide ships, so that, again, the productivity is faster than any other port on the coast. We're the only place where you can actually bring those large ships in and out efficiently. It's two-way traffic, so you don't have to stop all of the traffic to let one big ship come in."

Jehu considers the Port of Virginia's performance after the collapse of Maryland's Key Bridge last year to have been a tremendous opportunity to woo truckers and shippers from Baltimore to Norfolk. He says Virginia's port was able to demonstrate that it works faster and more efficiently during an emergency than Baltimore and other ports do under normal conditions. "So, out of every tragedy there's opportunity right? There's a silver lining, however the saying goes. And each time an event like that takes place, it shines a light on Virginia's ability to adapt. So, the Key Bridge collapsing was a human tragedy and maritime disruption for our friends in Baltimore. [But] operationally [when traffic was diverted from Baltimore to Norfolk], there was virtually no impact" on service at Norfolk.

The interview also covers Virginia' ongoing projects to expand highway capacity to-and-from the Port of Virginia through the Hampton Roads area. This includes the latest project, widening the current four-lane segments along nearly ten miles of the I-64 corridor in Norfolk and Hampton, with new twin tunnels across the harbor. It will be the largest highway project in the history of the state, and follows the construction of many other highways, as well as Express Lanes from Fredericksburg to Washington, D.C.

But the Old Dominion isn't resting on its laurels. Dulles International Airport has already helped lure many major corporate headquarters to the state. Northern Virginia cities enjoy direct access to the airport, which is the only one in the region that meets the needs of international businesspeople in terms of departure frequency, and in the number of international business destinations. Maryland leaders have - intentionally - failed to construct a new Potomac River crossing to the Dulles area that was planned decades ago. Now Virginia is actively going to expand its Dulles advantage.

A study ordered by the state found that Dulles is an "underused asset," that has the potential to steal cargo traffic from the current leading airports for air cargo in New York, Chicago, and Atlanta. Jehu notes that such new cargo service would attract more pharmaceutical companies to Virginia, as many of their products require swift air transport around the globe. Montgomery County could take advantage of that new cargo capacity, but only if it constructs the new Potomac River crossing that would extend I-370 to Dulles. Without that bridge, Virginia will continue to rapidly close in on Maryland's rapidly shrinking advantage in the biotech field, which has been the one bright spot in Montgomery County and Maryland's otherwise-moribund economies this century.

One other logistics and infrastructure jewel in Virginia's crown not mentioned by Jehu is the new addition of commercial passenger flights out of Manassas Regional Airport expected later this year. Meanwhile, all the talk around Montgomery County's Airpark is about wanting to curtail air traffic there, rather than expanding it. Heckuva job, Brownie!