Three Tenants Ink Combined 79K SF at Maryland Office Tower

Beacon Capital Partners has landed three new tenants at an office building in Bethesda, Md., despite vacancy challenges in the state’s suburban markets.

Beacon locked in a total of 78,864 square feet of relocation leases at Avocet Tower, a 22-story, 370,000-square-foot office building in Bethesda. Insurance and investment solutions provider Ullico inked a 30,333-square-foot relocation lease from Brookfield’s 8403 Colesville Road in nearby Silver Spring, Md.; Arlington Capital Partners likewise signed a 30,333-square-foot deal to expand and relocate its headquarters from Carr Properties’ 7272 Wisconsin Avenue in Bethesda; and DiamondRock Hospitality Company inked an 18,198-square-foot relocation lease from The Meridian Group’s 2 Bethesda Metro Center. 

Transwestern’s Phil McCarthy, Keith Foery, Mark Boyce and Karla Rivera represented Beacon in the deal, while undisclosed CBRE brokers represented the tenants. Transwestern has operated out of the building, at 7373 Wisconsin Avenue, since late 2024. 

“This dynamic leasing activity underscores the strong demand for trophy office space as well as Avocet Tower’s reputation as one of the most desirable properties in the market with HQ-size opportunities,” McCarthy said in a statement. “Exceptional amenities, innovative design and a central location combine with the energy and connectedness of Downtown Bethesda to offer tenants a premium workday experience within and beyond the office.”

Despite the deals at Avocet Tower, suburban Maryland’s office market is still reeling from the Trump administration’s push to shrink the federal government, as well as from general economic uncertainty. Class A vacancy in the market, at 20.4 percent, rose slightly above Class B and C buildings in the third quarter of this year, according to a recent analysis by Avison Young. Bethesda’s overall office vacancy meanwhile hit 30.2 percent, per the report. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.