State of Downtown 2004


Publish Date


The strong operating performance of Downtown BID office space, in conjunction with declining capitalization rates for Downtown BID office sales, has led to record high prices. Sales prices for Class A buildings rose to $484 per sf in 2004 from $230 per sf in 1998 and $341 in 2001. For the third year in a row, the Association for Foreign Investors in Real Estate ranked DC as the Best Global City for Real Estate Investment.

As the Downtown BID enters the home stretch to completing its revitalization during the next five years, it will continue to be a major contributor to the DC government’s budget. In 2002, the latest year for which figures are available, the entire Downtown BID generated $525 million in net taxes to the DC government, which compares to approximately 60% of the local public school budget. This contribution has supported expanded city services, DC’s improved financial condition and its rise from “junk” bond status to a single A credit rating by all three national bond rating services.