PRESS RELEASE

New Retail Market Analysis Supports More Department and Specialty Stores for Downtown DC

Release Date: Thursday, October 27th 2005

FOR IMMEDIATE RELEASE
October 27, 2005

CONTACT:
Karen Sibert, 202.661.7560

WASHINGTON -- The Downtown Business Improvement District (BID) has
announced the release of a new report that evaluates the prospects for
destination retailing and formulates possible scenarios for
strengthening the mix retail offerings for the area. Gould &
Associates of Washington, DC, and Chapman Consulting of Alexandria, VA,
conducted the study and produced the report entitled, "Market Potentials
for Destination Retailing in Downtown DC." Both firms specialize in
market evaluations for major retail stores and shopping centers.

"In producing this study, we've taken the guesswork out of retailers'
decision-making, " said Steve Moore, deputy executive director of the
Downtown BID.  "City officials, brokers and others now have a tool
documenting a shoppers' goods expenditures potential that exceeds $1.2
billion."

In recent years, Downtown DC has undergone a remarkable renaissance in
virtually every use category: real estate development totaling more
than $5

million; more than 10 million square feet of new and renovated office
space has been completed; and 2,474 new housing units have been built.
However, retailing has been something of a mixed bag, with a dispersed
group of retailers having a diverse price-point orientation,
merchandise and customer mix. As a result, Downtown has not yet
achieved the goal of becoming a retail destination.

"The real strength of this report is that it contradicts long-held (and
outdated) assumptions about the retail market in DC," said Richard
Bradley, executive director of the Downtown BID.

The report documents market demand:

 

• 300,000 residents in the Primary Trading Area (extending from the
  Anacostia River to the western edge of Georgetown; the District border
  in Northeast near Mount Rainier, MD, to the Potomac) with an average
  household income of $67,038 and expenditure potential of $1.2 billion.
   
• 265,000 residents in the Secondary Trading Area (the rest of the District of Columbia) with a $1 billion expenditure potential.
   
• A large, affluent and highly educated office workforce of more
  than 200,000 with an estimated expenditure potential of $267 million.
   
• More than 11 million tourists and 5.8 million business and convention visitors annually.

In addition, the study evaluated the competitive retail environment and
current Downtown offerings and identified prospective new department
store anchors and other retailers that could be attracted to locate
Downtown.  It concludes that the Downtown BID area could support
up to two additional department stores (100,000 to 125,000 square feet)
and other major specialty formats.

"What is needed is a bold retail development strategy for the city to
reverse sales leakage, loss of sales taxes and thousands of jobs to
suburban competitors," said Bradley.