Close to 200 analysts, property owners, developers, commercial tenants, investors, policymakers, and Downtown stakeholders convened at the Newseum (555 Pennsylvania Avenue) on Friday, April 26, for the DowntownDC BID’s Sixth Annual State of Downtown Forum, where the BID officially released its 2012 State of Downtown report and held a lively panel discussion about Downtown and D.C.’s standing in the regional, national and global economies.
Several topics, including D.C.’s status as a global powerhouse, current development projects, and investments in transportation, public safety and affordable housing, were discussed.
The State of Downtown report, published annually, shows Downtown’s economic trends and how they relate to the larger D.C. and regional economies. It provides the best information available on the Downtown economy for BID members and other stakeholders and interested parties.
According to the 2012 report, the fundamentals of the Downtown economy are strong, despite experiencing modest declines in several sectors. This economic stability exists because the DowntownDC BID area, and D.C., benefits from the still stabilizing impact of federal government employment and spending in addition to both public and private investments.
The Forum featured a panel of distinguished Downtown stakeholders: Ginnie Cooper, chief librarian, the District of Columbia Public Library (DCPL); Robert McCartney, columnist, The Washington Post (1150 15th Street); Gregory O’Dell, president and chief executive officer, Events DC (801 Mount Vernon Place); and Howard Riker, managing director, Hines (555 15th Street), the privately owned, international real estate firm.
City Councilmember Jack Evans (Ward 2), who attended the Forum, also spoke briefly about Downtown and D.C.’s dramatic transformation
This year’s theme, “A Solid Foundation in Changing Times,” set the pace for the hour-long panel discussion and overview of key report findings, provided by Steven Jumper, director of corporate public policy for WGL Holdings and chairman of the DowntownDC BID. Richard Bradley, the BID’s executive director, moderated the panel discussion.
Some key points made by panel members Cooper, McCartney, O’Dell and Riker:
- The report “was spot on” and “very positive.”
- The Martin Luther King Jr. Memorial Library (901 G Street), the city’s central library, has seen a 40 percent increase in the number of books and materials checked out by patrons, activity which it says is caused by a more robust Downtown
- The CityCenterDC, the massive, mixed-use project that Hines is developing on the site of the Old Convention Center is attracting international and luxury tenants; Phase One of the development opens this spring, and the condos, which already are more than 50 percent sold, are attracting buyers whose average age is 44.
- D.C. has had strong leadership over the past three administrations and its fiscal house is in order, all of which bodes well for future investments
- There’s a skills mismatch between existing jobs and D.C. residents
- Among future threats to Downtown and DC are public safety, congestion, affordable housing, transportation and distrust between the business community and the local government
Overall, however, the panelists were bullish on Downtown and D.C. “I’m very excited about the future,” said Ginnie Cooper, who is working to help transform the city’s public library system and build a 21st century central Downtown library. In partnership with the DowntownDC BID, DCPL has engaged the Urban Land Institute to review and assess the best use for the MLK Library building. A conceptual design unveiled last fall envisions new, flexible space, including two additional stories that would have a rooftop terrace and Class A office space. The report is robust in its data presentation.
When discussing D.C.’s status as a global class city, McCartney offered that “We’re a global class, but second tier. Global in terms of quality, but in terms of scale, D.C.’s not there. The great, lively, urban neighborhoods aren’t there because we missed out a few decades [of building solid, livable communities]. So, we have a ways to go to be a global city.” He added that “our organizational ability, our vision and our will” has to be focused on getting there.
Greg O’Dell reminded the audience that foreign investors ranked D.C. 4th among the Top 5 global cities. He noted Events DC is actively pursuing international companies for conventions at the Walter E. Washington Convention Center (801 Mount Vernon Place) and managed to attract the International AIDs Conference last summer. It was the first time in 20 years that the global meeting was held in the U.S.
Among some 2012 State of Downtown report highlights:
- BID area employment grew to 181,500, an increase of 2,200 since 2010.
- DC is maintaining its regional market share, with employment at 24.1 percent and population slightly increasing market share from 10.8 percent to 10.9 percent.
- D.C.’s population increased by 13,000 in 2012 and 14,000 in 2011; about 50 percent of that growth occurred within two miles of the Verizon Center.
- D.C. and BID area office markets continued to be strong relative to the region and the nation, although both had significant negative absorption—547,000 SF in the BID area; 567,000 SF in D.C.
- Retail is nearing the requisite critical mass to be a successful shopping district: two significant shoppers goods retailers, J.Crew and T.J. Maxx, opened, and while the total number of restaurants open at the end of the year was slightly down from 2011, 136 in 2012 vs. 138 in 2011, there were nine restaurants under construction or in development at year-end, three of which have opened in the first few months of 2013.
- Hotels experienced a modest decline in operating performance and revenues, but revenues were still higher than any other year, except 2011. (Hotel revenues for the first three-and-a-half months of 2013 are up 5-10 percent over 2012.)
The 2012 State of Downtown report is available on the DowntownDC BID website at www.downtowndc.org/state, and will be available soon via the iPad by downloading a new app which provides the report in a digital format. The link to the app will also be available soon at www.downtowndc.org/state.