A recent reopening of a Potomac restaurant in a location outside of Potomac Village is a sign of the local business climate, says real estate expert David D. Freishtat. Potomac Village Deli is now operating in Kentlands Market Square. The move comes with a lower rent and enables the deli to serve the same clientele.
"When people in Potomac want to go out to dinner or go shopping, they're not going to walk," said Freishtat, who serves on the Montgomery County Revenue Authority, and is an attorney at Shulman, Rogers, Gandal, Pordy & Ecker.
"They're going to get in their car and drive. And if they're already driving, why not drive an extra 10 to 20 minutes out of Potomac to a place like Bethesda where they'll have a choice of more than 100 restaurants?"
The high rents in Potomac, says Freishtat, continue to make it extremely difficult for small businesses to stay afloat. As a result, there are fewer choices for dining and shopping in Potomac Village, a tendency that he predicts won't change anytime soon.
"The businesses with a presence is the Village are large chains that can afford to be there," he said. "They're able to pay $80 per square foot for rent here because they're paying $20 somewhere else, so it evens out."
Competition is another motivating factor for large businesses. "Safeway and Giant are willing to pay to be in Potomac because they know if they move out Whole Foods or Trader Joe's will move in and they don't want that," said Freishtat.
The same is true for banks. "There's a lot of money in Potomac and there's always a need for banks," said Freishtat. "The banks know that if they move out another bank will move in."