Media Contact: downtowndcbid@berlinrosen.com
Update to annual economic report shows booming tourism, significant crime decreases, higher office attendance; challenges from office/retail vacancies, declining property values, federal workforce change.
Annual DowntownDC BID forum brought Mayor Bowser, Tracy Hadden Loh of The Brookings Institution, Crispus Gordon of Monumental Sports and others together to analyze strengths and opportunities.
WASHINGTON, D.C. (April 22, 2025) – The DowntownDC Business Improvement District (BID) today released its State of Downtown report at a forum held at Georgetown University’s Capitol Campus. The annual report outlines numerous positive trends from 2024 amidst ongoing shifts with the potential to affect the city’s largest economic engine.
“Every day, we’re seeing more residents, visitors, and businesses choose Downtown DC,” said Mayor Muriel Bowser. “That growth isn’t happening by chance. It’s the result of intentional investments and strong public-private partnerships that are reshaping how people experience the heart of our city. As we look ahead, we remain committed to keeping Downtown a vibrant, dynamic engine for DC’s economy for years to come.”
“Downtown D.C. made meaningful progress in 2024, with encouraging signs of recovery taking shape across the neighborhood,” said Gerren Price, President and CEO of the DowntownDC BID. “But, the path forward includes some challenges — return-to-office trends, market shifts, and evolving federal policies will all influence what comes next. What’s clear is that this moment calls for steady commitment. That’s why we’re working closely with the Mayor, Council, and federal partners to ensure Downtown remains an economic powerhouse.”
HIGHLIGHTS OF THE 2024 STATE OF DOWNTOWN REPORT INCLUDE:
Safety
- Violent crime decreased year-over-year by 57%, falling below pre-pandemic levels. Total crime decreased by 12%, demonstrating the impact of concerted efforts by the Metropolitan Police Department, the Penn Quarter-Chinatown Safety Team and other legislative efforts by the Council.
Office Occupancy, Employment and Regional Competition
- Office vacancy increased by 1% in 2024, reaching a new high of 22%. At the same time, compared to 2023, both building sales volume and in-person office attendance increased – though, on average, buildings sold for less than their assessed value. Workers are still present downtown, but taking up less space. The federal government owns 23% of the office space within Downtown D.C.
- D.C. trails behind regional competitors in job growth and multifamily real estate investment. D.C.’s total employment is below 2019 levels, having recovered about half of the jobs lost since 2020.
- Downtown D.C.’s knowledge economy jobs have increased by 5,000 between 2019 and 2024, while employment in retail, food service and accommodations fell by 5,200 over the same time period.
Hospitality & Tourism
- Tourism grew 15% over 2023, with downtown museums and performing arts venues seeing 3.8 million visitors.
- Hotel revenue is 15% higher than in 2019, increasing to $788 million, making up nearly one third of D.C.’s total hotel revenue. Occupancy increased slightly to 71%, up from 2023.
Residential
- Downtown D.C.’s first office-to-residential conversion opened with 222 units at the Balsa Apartments. More than 1,700 housing units are in the pipeline, thanks in part to efforts outlined in the Downtown Action Plan, the Housing in Downtown Tax Abatement Program and other initiatives to bolster residential development.
Transit
- Metro ridership continues to grow, as weekend ridership has nearly returned to its pre-pandemic baseline, with 98% ridership compared to 2019.
- Capital Bikeshare ridership, which can be used to approximate the growth of overall bicycle ridership, climbed to another record high in 2024 of more than 815,000 trips in Downtown D.C., up from 782,000 in 2023.
Programming & Activations
- The revamped DowntownDC Holiday Market had $7.6 million in sales, supporting over 100 vendors. Holiday Market shoppers spent an additional estimated $8.4 million downtown before or after visiting the market. This was the best attended DowntownDC Holiday Market in years, welcoming an average of 11,000 daily visitors and nearly 30,000 visitors on its busiest day.
- The Capital One Arena saw 2.2 million event attendees, up 11% from 2023 and exceeding pre-pandemic levels by 25%.
Retail & Higher Education Space
- Universities added nearly 400,000 square feet,including Georgetown University’s Capitol Campus. Others included George Washington, Syracuse University, and Stanford University.
- In the retail sector, headwinds continued but some signs of recovery showed; vacancy remained flat year-over-year at 24.9%.
- Downtown D.C. experienced a net increase of six new restaurants, outpacing food service closures. Other types of retail had more closings than openings.
Net Fiscal Impact
- Downtown D.C. remains an economic engine for the District, generating 12.9% of city revenues with a projected net fiscal impact of $645M in FY 2025. This is $310M below FY 2019, highlighting the continued impacts of a struggling office market on D.C.’s economy and emphasizing the need for renewed investments in the neighborhood.
At this year’s event, Mayor Muriel Bowser and DowntownDC BID President and CEO Gerren Price were joined by Shalom Baranes, Founding Principal, Shalom Baranes Associates; Crispus Gordon, Vice President of Government Relations and Strategic Affairs, Monumental Sports & Entertainment; Robert M. Groves, Interim President, Georgetown University; Tracy Hadden Loh, Brookings Metro Fellow, The Anne T. and Robert M. Bass Center for Transformative Placemaking, Anoop Rustgi, Managing Director, Quadrum Global (Arlo Hotel); and Mark Simpson, Director of Planning & Economic Development, DowntownDC BID.
The 2024 State of Downtown report highlights the need for critical investments in downtown as part of the Downtown Action Plan (DAP). Private investment since the release of the plan in early 2023 has resulted in 385 new residential units delivered, 50 new retail businesses opening, 445 new hotel rooms constructed and university expansions in five new locations.
To continue the progress from 2024, maintaining the positive momentum will require continued efforts to support downtown as outlined in the DAP. Downtown D.C.’s ability to be nimble and adapt to ever-changing markets requires mixed-use development that is more resilient against sudden shifts in the workforce and wider city economy. DowntownDC BID fosters strategic and thoughtful partnerships to ensure the region remains a desirable place to live, work, learn and visit.
DowntownDC BID 2024 State of Downtown report is available HERE; Watch the full State of Downtown Forum livestream HERE.
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About DowntownDC Business Improvement District
The DowntownDC Business Improvement District is the city’s longest-established BID, founded in 1997 as a private nonprofit organization that provides capital improvements, resources, and research that keep the BID area clean, safe, economically and environmentally strong, and accessible. The DowntownDC BID is a catalyst, facilitator, and thought leader in diversifying the economy, promoting public-private partnerships, and enhancing the downtown experience for all. DowntownDC encompasses a 140-block area of approximately 530 properties, from Massachusetts Avenue on the north, including the Walter E. Washington Convention Center at Mount Vernon Square, to Constitution Avenue on the south, and from Louisiana Avenue on the east to 16th Street on the west.