A period of uncertainty is the way that some are characterizing the current business climate in Potomac.
“It’s still too early to tell what will happen under the new administration,” said Adam Greenberg, president, Potomac Chamber of Commerce and owner of Potomac Pizza. “If they roll back taxes that could be good for everybody because people feel like they can spend more money.”
Greenberg predicts that residents could invest those dollars into their homes. “When people have more money to spend they can redo their kitchen, put in a sprinkler system, paint their house, replace their roof, or take on another project that they’ve been putting off,” he said. “Landscaping and construction are businesses that we’ve seen deteriorate over the last few years.”
Those home improvement projects could lead to a boost in the food industry as well. “There would be more construction workers and landscapers in the area and they have to have lunch and could buy it at one of the local restaurants,” said Greenberg.
Convenience and quality will continue to be a key to the success of small businesses in Potomac Village where banks, real estate office and medical practices are most prevalent, says Dr. Tristram Kruger, D.D.S., past president of the Potomac Chamber of Commerce. “Getting in the car and riding to Home Depot would probably be a little less expensive than going to the hardware store in the Village, but when you’re in the middle of a project … speed is of the essence, so those types of stores that are in the spaces in the Village are invaluable, but they’ve got to be convenient.”
“The land is so expensive out here that it’s hard for small businesses,” he continued. “For mom and pop shops, delis and other small businesses, it’s pretty tough, especially when people can shop online or go to a big box store.”
There are a variety of nearby alternatives to large, chain stores for those who want convenience while supporting small businesses, a factor which makes it difficult for Potomac-based businesses, says David D. Freishtat, an attorney with of Shulman, Rogers, Gandal, Pordy & Ecker and an adjunct professor at University of Maryland’s School of Architecture, Planning and Preservation “There are so many retail opportunities in village stores close to Potomac like Bethesda or Kentlands that have improved in recent years and where rent is lower,” he said. “With competition like that Potomac will remain what it is. It can’t grow.”
The current period of economic uncertainty also extends to the outlook for the local real estate market. “It’s really hard to predict this one with the new administration,” said Andrea Alderdice, secretary, Potomac Chamber of Commerce. “Not knowing always slows down the market. It will be a wait and see. It could be great, but we just don’t know.”
The real estate market will remain stable going into spring, predicts Nancy Itteilag of Washington Fine Properties. “The real estate market is steady,” she said. “You get a lot more in Potomac for the same amount of money that you would in the city. I don’t think sales are declining, but the prices have declined.”
Itteilag expresses caution about using local sales trends as an indicator of what’s happening in Potomac. “It gets distorted when you listen to the real estate reports for Washington because they’re lumping everything together,” said Itteilag. “So many of the homes in Potomac are priced at one million dollars and higher.”
Proximity to downtown Washington is a factor that can determine how long a home remains on the market, says Itteilag. “I think that houses that sell faster are closer in, and homes that sell faster are those that are redone and updated,” she said. “People no longer are buying homes with plans to remodel them, so the single best thing that someone can do to if they’re thinking of selling their house is to redo their kitchens and baths so they can enjoy until they decide to sell. And when it’s time to sell, they’re ready to go.”