Wed. May 21, 2008
“Emerging Shopping District Poised to Become Regional Destination”
WASHINGTON, DC – The retail sector in Downtown DC is on the cusp of creating a critical mass of shoppers’ goods retail by 2012 in an emerging Downtown shopping district, including local and national retailers set to open at the 10-acre Old Convention Center site, according to a new report released today by the Downtown DC Business Improvement District (BID).
The report, Downtown DC Shopping District, shows while the Downtown BID area has the distinction of being the region’s commercial, arts, cultural and entertainment epicenter, retail is the one sector of the Downtown economy that has yet to achieve regional success. Ten years of deal making and annual attendance at the International Council of Shopping Centers conference, now led by Mayor Fenty and continuing a practice started under the Williams administration, have brought new retailers to the city, many of whom found their way to Downtown. But the city needs an even bolder way to stem the outflow of $1 billion in retail sales to Maryland and Virginia, and the loss of approximately $60 million of sales taxes and thousands of jobs.
That’s all about to change. With more than 500,000 square feet (SF) of existing shoppers’ goods retail already in place, the Downtown BID shopping district has 90,000 SF of retail space available today, and another 600,000 SF in the pipeline. Once the planned projects are realized, the new shopping district will have the capacity for 1.2 million square feet of shoppers’ goods retail space, competing effectively with the region’s large shopping centers. With projected strong growth in Downtown and near Downtown residents and employment, Downtown shoppers’ goods retail demand is projected to total $1.3 billion in 2012.
“When you examine all the elements that are driving demand 182,000 jobs in the Downtown BID area, one of the nation’s hottest office markets, a residential population of 8,400 with an average household income of $120,000, numerous cultural and entertainment venues, 118 destination restaurants, accessible transportation, and a strong and growing hotel and Convention Center visitor market the outlook is extremely upbeat for an emerging Downtown shopping district,” said Richard H. Bradley, executive director of the Downtown BID. “The existing, available and planned retail spaces all bode well for the area to become a robust, regional shopping destination.”
The Downtown DC Shopping District stretches for more than 15 blocks from Mt. Vernon Square and New York Avenue to the north, 7th Street to the east, F Street to the south, and 13th Street to the west.
One need not look far to find the resurgence on F Street, DC’s oldest retail corridor. New construction and historic renovations have combined to create a vibrant, captivating and welcoming environment for pedestrians and shoppers. As national chains and independent stores such as Alden Shoes, Peruvian Connection and Mia Gemma (a local jeweler) move into spaces renovated by the Akridge Co. and Douglas Development in the 900 to 1200 blocks, the street is regaining the luster of yesteryear when it was home to Washington’s most venerable department stores Garfinckel’s, Woodward & Lothrop and Hecht’s.
Seventh Street currently offers a lively mix of shopping, dining, cultural and entertainment options, with more to come. Riverdale International is constructing 50,000 SF of prime retail space at 7th and H Streets in Chinatown, while Douglas Development has plans for another 100,000 SF of retail just across 7th Street and New York Avenue from the Washington Convention Center. And, as new retail finds its way along H Street from 7th to 11th Streets, the Old Convention Center site, the largest cluster of planned Downtown retail space at 400,000 SF, will anchor a blend of specialty shops, restaurants, cafes and boutique grocery stores.
“It is time we start calling this place what it is, our City Center,” Mayor Fenty said in a recent press advisory, adding that CityCenter DC, the new name for the development project planned at the Old Convention Center site, is “the heart and soul of our dynamic new downtown.”
Macy’s anchors the western edge of the shopping district at 13th and G Streets, where several nationally known retailers such as Johnston & Murphy, Ann Taylor, Banana Republic and others have already established a presence.
Other planned Downtown retail projects include 34,000 SF in the 1100 block of F Street; 20,000 SF in Chinatown at 600 Massachusetts Avenue; and 8,000 SF at 1000 F Street. Meanwhile, key vacancies now available in the Downtown shopping district include a few scattered retail spaces in the 500 SF to 3,000 SF range; 75,000 SF in several spaces in the 900 and 1000 blocks of F Street; and 10,000 SF in several spaces in the 500 block of 7th Street.
“Essentially, in a few short years, the Downtown will return to its former retail glory, and then some,” said Bradley. “All the cards are either in place or falling decisively into place, making for what will amount to a very radical, new shopping experience for the region’s visitors, residents and workers.
Copies of the Downtown DC Shopping District report, which provides extensive data on retail demand drivers and market statistics and projections, are available online at www.downtowndc.org/retail, or may be requested via e-mail to ebony@downtowndc.org.
###