Fri. April 25, 2014
WASHINGTON, DC – Record hotel sales, the emerging growth of retail, numerous new destination restaurants and an increase in mixed-use development marks the 2013 State of Downtown Report released Friday by the DowntownDC Business Improvement District (BID).
“The DowntownDC BID is encouraged by the 2013 State of Downtown Report, which confirms that mixed-use investment has been a key economic driver and will continue to benefit Downtown in the future,” said BID Executive Director Richard H. Bradley.
[View the report online now at http://www.downtowndc.org/reports/state-downtown-2013]
The annual State of Downtown Report, regarded as the definitive analysis of Washington, D.C.’s Downtown economy, shows exactly how DowntownDC is “Branching Out,” the theme of the 2013 report which was unveiled Friday morning at the BID’s State of Downtown Forum held at the Newseum.
Downtown in the mid-1990s was a single-sector economy focused almost exclusively on the office industry, but today, DowntownDC has a wealth of new high-end retail at CityCenterDC to add to growing retail along F and G Streets, housing is growing, cultural and entertainment venues are booming, hotels are flourishing and strong transportation networks are supporting a thriving Downtown economy. All of these mixed-use investments are paying off for Downtown as it heads into the future.
Hotels experienced a record year in 2013 with regard to both operating performance and room revenues. Cultural and entertainment venues attracted a record 9.7 million visitors in 2013. Hines’ CityCenterDC set records for new residential units, apartment average rents and condominium average sale prices. Office buildings’ average sales prices reached record levels. Higher education, a design showroom and cultural uses were all added to the BID in 2013.
The short-term outlook shows several significant development projects on tap for 2014 including the Trump International Hotel at the Old Post Office Pavilion, the Capitol Crossing project over I-395, and a 400,000 square foot (SF) office building at 600 Massachusetts Avenue NW.
Concerns still exist for Downtown’s economy, including office market stagnancy, the retrenchment of the federal government, and office densification. Additionally, employment in Downtown makes up 24.2 percent of D.C. employment overall, a number that has been virtually unchanged over the last five years.
CoStar Executive Vice President Frank Carchedi, Pepco Region President Donna Cooper, Washington Post Columnist Mike DeBonis and 1776 Co-Founder Donna Harris presented their live analysis of the 2013 report at Friday’s State of Downtown Forum.
[Read more about the forum and analysis from the panelists here.]
About the DowntownDC BID
The DowntownDC Business Improvement District (BID) is a private non-profit organization that provides capital improvements, resources and research to help diversify the economy and enhance the Downtown experience for all. This special district, where property owners have agreed to tax themselves to fund services, encompasses a 138-block area of approximately 520 buildings from Massachusetts Avenue on the north to Constitution Avenue on the south, and from Louisiana Avenue on the east to 16th Street on the west. As a catalyst, facilitator and thought leader, the DowntownDC BID promotes public/private partnerships to create a remarkable urban environment. For more information, visit www.DowntownDC.org or follow us on Twitter @downtowndcbid.