Wed. June 11, 2008
New report by Downtown Business Improvement District shows all
market sectors continuing to track upward
WASHINGTON, DC – The Downtown DC Business Improvement District (BID) has released its 2007 State of Downtown Report, which shows that the Downtown BID area is home to 182,300 employees, 8,400 residents and a world-class array of attractions that welcome 9.5 million annual visitors. Even more importantly, the report reveals that the Downtown BID area’s economy has remained remarkably healthy amid international and national economic and financial turmoil, which has had an adverse impact on the Washington, DC, regional economy.
The report is published annually to inform 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.
Richard H. Bradley, executive director of the Downtown DC BID, comments on the Downtown’s continuing success: “Despite significant recent shocks to the international, national and regional economies surrounding Downtown Washington, DC, the Downtown BID area economy should continue its strong performance and growth in 2008. The many layers of the Downtown BID area economy are the result of more than $9 billion in total investment since 1997, including strong support from both the DC and federal government.”
“We look forward,” he adds, “to the remainder of 2008 and the next few years with a sense of cautious optimism as the Downtown BID area provides a remarkable urban experience for employees, residents and visitors alike with access to unparalleled public transit, cultural amenities, entertainment and restaurants—all of which mix together in an exciting environment of urban vibrancy.”
Highlights of the 2007 State of Downtown Report are as follows:
- The Downtown BID area added 5,000 jobs in 2007 and will continue to add approximately 2,000 to 4,000 jobs each year until full build out is reached in 2014 or 2015.
- From 1997 through 2007, $8.6 billion has been invested in Downtown BID area development, reducing the number of surface parking lots and development sites from 115 in 1997 to just 19 today.
- The Downtown BID area’s office market boasts Class A rental rates of $59 per SF (second only to midtown Manhattan) and a Class A vacancy rate of 6.3% (fifth nationally behind midtown Manhattan, downtown Manhattan, Denver and Boston).
- 500 new residents arrived in the Downtown BID area in 2007 for a total of 8,400 residents. In the 10 blocks surrounding the BID area, the population increased by 700 residents for a total of 36,200 residents.
- Visitor attendance in the Downtown BID area hit an all time high of 9.5 million, up by 470,000 visitors, or 5%. This performance was anchored by the 2.5 million patrons of the Verizon Center as it celebrated its 10th anniversary in December 2007 and more than 1 million visitors to the Washington Convention Center. The Shakespeare Theatre Company’s new state-of-the-art, 775-seat Sidney Harman Hall helped fuel visitor increases along with the first full year of attendance at the Reynolds Center for American Art.
- BID area Metrorail ridership rose to 102,000 per weekday, up 2,000 riders per day from 2006. The DC Circulator bus carried approximately 6,600 daily riders in 2007—an increase of 16% over 2006—and served its 5 millionth passenger in December 2007.
- The Downtown BID area is a significant contributor to DC’s fiscal resurgence. The net fiscal impact of the Downtown and Golden Triangle BID areas is estimated at $644 million for fiscal year 2007, based on total revenues of $1.162 billion (21% of DC’s total) less estimated public expenditures of $518 million.
Noting the mix of development uses and the relative lack of developable space left in the Downtown BID area, Gerry Widdicombe, director of economic development for the Downtown DC BID states: “Since January 1, 1997, the Downtown BID area has added approximately 30 million square feet of new and renovated space and will add another 13 million by the end of 2015—and only 50 percent of it will be office space. Going forward, the remaining major projects are the Old Convention Center site’s redevelopment, a new 1,150-room Headquarters Hotel and, finally, the mixed-use development over I-395. Thus, by 2014 or 2015, the BID area will be fully built out.”
Although the majority of future development in DC’s Center City will now occur in emerging markets such as Mount Vernon Triangle, NoMa and the Capitol Riverfront, the Downtown BID area will continue to evolve.
“In the future, the Downtown BID area will welcome new employers, museums, hotels, restaurants, as well as environmentally conscious transportation alternatives and amenities,” says Matt Klein, chairman of the Downtown BID Board of Directors. “Securing investment in the existing transit system and adding new transit options, improving parks, continuing to improve care for the homeless and creating a retail shopping district, are activities we are undertaking to enable the Downtown BID area to become one of the world’s most vibrant, inviting and smart urban destinations.”
To obtain copies of the 2007 State of Downtown Report, please contact Rebecca White at (202) 661-7591 or rebecca@downtowndc.org. The report is also available on the Downtown BID’s website at www.downtowndc.org/state.
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