Wed. April 27, 2011
Slow Beginning Gained Momentum as Major Indicators Flourished
WASHINGTON, DC – The DowntownDC Business Improvement District (BID) has released its 2010 State of Downtown Report, which shows the year ended on a successful note, generating job growth, increased office and retail occupancy, strong hotel results and increased property values in Downtown.
Overall, the area contributed more than $800 million in local tax and other revenues to the city, a net fiscal benefit roughly equivalent to the size of the DC Public and Public Charter Schools’ budget.
“The year was remarkable,” said Richard H. Bradley, executive director of the DowntownDC BID. “Most notable was the groundbreaking for the much-anticipated Convention Center headquarters hotel and the news that financing had been secured for the landmark, $700 million CityCenterDC project, which broke ground this month. Both developments will transform Downtown and DC in ways never seen before, create thousands of jobs and add multiple millions to the city’s coffers.”
The State of Downtown Report is published annually to update public and private decision-makers on the historical, current and projected performance of the major sectors of the DowntownDC BID area economy: development, employment, office, green buildings, residential, hospitality, tourism, culture, entertainment, restaurants, retail and transportation.
Some 2010 report highlights:
- The upswing began with the speculative, March 2010 restart of the Skanska USA Commercial Development and First Congregational United Church of Christ’s mixed-use project at the corner of 10th and G Streets—the only DowntownDC BID area office project to break ground over the two years ending March 2011.
- Federal job growth continued, leading the return of job growth to both the DowntownDC BID area and the city.
- Occupancy of Downtown’s private office space increased by about 400,000 SF, enough to accommodate more than 1,600 office jobs.
- Downtown and Center City jobs are leading to more than 3,000 new apartments being constructed within 15 blocks of the DowntownDC BID area.
- Downtown hotels outperformed those of midtown Manhattan in March and April during the National Cherry Bottom Festival.
- Downtown retail vacancy rate declined to 7% from 11%, dropping below 10% for the first time since 2000, when the data was first tracked.
According to the report, Downtown, the Center City and DC face significant competition from the region. As DC is built out over the next 15 to 20 years (absorbing its current estimated development capacity of 100 million SF), the city must continue to focus its efforts on growth if it wants to bring another 100,000 jobs, 50,000 residents and $700 million to $1 billion in new annual taxes.
“The short-medium- and long-term threats are real,” said Bradley. “DC has many competitive advantages, including proximity to the federal government, the center of the regional transportation system and its cultural, entertainment and dining amenities. In order to continue to attract and retain businesses to grow employment and increase tax revenues to fund the city’s progressive social agenda, the city must continue to invest in Downtown, Center City and other key projects, such as St. Elizabeths East Campus, Skyland and McMillan Reservoir.”
To obtain copies of the 2010 State of Downtown Report, contact Jeannette Chapman at 202-626-1131 or jeannette@downtowndc.org. The report also is available on the DowntownDC BID’s website at www.downtowndc.org/state.