Mon. June 1, 2009
Report Cites Public/Private Partnerships, Investments as Key
WASHINGTON, DC – The Downtown DC Business Improvement District (BID) has released its 2008 State of Downtown Report, which shows that the city and Downtown both suffered economic declines at the end of 2008 because of global financial and economic turmoil.
Downtown and DC’s strong economic performance in many sectors in comparison to the region, nation and world is due to the federal government’s presence and strategic city and federal investments over the past 12 years. Downtown, DC and the region are expected to experience job growth as federal stimulus dollars and major investments in energy, the environment and healthcare grow the local economy.
The report is published annually to update public and private decision-makers on the historical, current and projected performance of the major sectors of the Downtown BID area economy: employment, office, residential, hospitality, tourism, culture, entertainment, restaurants, retail and transportation.
Highlights of the 2008 State of Downtown Report are as follows:
· The Downtown BID area added jobs in both 2007 and 2008.
· $9.5 billion has been invested in BID area development since 1997.
· Downtown’s office market has Class A rental rates of $60.30 per square foot and a Class A vacancy rate of 9.6%.
· 250 new residents arrived in the BID area in 2008 for a total of 7,600.
· Visitor attendance in Downtown hit an all-time high of 10.1 million.
· BID area Metrorail ridership rose to 108,000 weekday; the DC Circulator bus ridership increased 16% over 2007.
· Downtown restaurants continued to grow in number and quality, with a net gain of nine in 2008, leading to a total of 122 destination restaurants.
· The Downtown BID area contributes significantly to DC’s fiscal health—when combined with the Golden Triangle BID, the net fiscal impact is estimated at $797 million for fiscal year 2010, or 23% of DC’s total gross local revenues of $5.5 billion.
According to the report, Downtown retail development continues to be slow but steady. However, recent additions in the 900 and 1000 blocks of F Street continued to move Downtown toward becoming a regional shopping destination. At the same time, overall construction and long-term financing in the city dried up in the face of the financial and economic crisis, making the fourth quarter of 2008 the first since 2001 that there were no groundbreakings for privately-owned office buildings.
The State of Downtown Report also highlights some key economic development themes:
· Downtown is the city’s fiscal engine; its net fiscal impact is critical to funding the city’s important social development programs.
· Downtown’s office market is strong, but faces two perils: increased competition from nearby jurisdictions and high business costs.
· Collaboration and strategic partnerships with federal and local governments and other businesses are key to moving toward recovery.
To obtain copies of the 2008 State of Downtown Report, contact Caitlin Davis at 202. 661. 7591 or Caitlin@downtowndc.org. The report is also available on the Downtown BID’s website at www.downtowndc.org/state.
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