Thurs. January 10, 2008
Business Improvement District Report Tracks Downtown Economic Progress
(Washington, DC) – The Downtown DC Business Improvement District (BID) area is home to 18% of the region’s office space, 12% of hotel rooms, 10% of destination restaurants and 6% of jobs. Further highlighting Downtown DC’s role in the vitality of the city and the region, the BID has released its annual State of Downtown report, which examines the progress, recent activity and projections for the following sectors: employment, office and residential, hospitality and tourism, culture and entertainment, retail and transportation. The report is targeted to public and private decision-makers.
Citing the importance of tracking the Downtown economy, BID Director of Economic Development Gerry Widdicombe says, “The Downtown DC BID area provides 177,300 jobs, and along with the Central Business District, generates $624 million in net annual taxes for the District of Columbia. Understanding and investing in this powerful fiscal engine is crucial for the city and region.”
Highlights of the State of Downtown include:
- From 1997 through 2006, more than $6 billion has been invested in BID area development, bringing the number of surface parking lots and developable sites from 121 in 1997 to just 24 today.
- BID area employment grew 8.2% from 2003 to 2006, adding approximately 3,000 to 4,000 jobs per year for people at all education, skill and income levels.
- The BID’s office market remains second only to Midtown Manhattan with a Class A rental rate of $50 per square foot and a Class A vacancy rate of 6.8%.
- 450 new residents arrived in the Downtown BID in 2006 for a total of 7,900 residents. In the 10 blocks surrounding the BID, the population increased by 2,700 residents for a total of 35,500 residents.
- Visitor attendance in the BID area hit an all time high of nine million, fueled by the Reynolds Center for American Art and Portraiture’s opening and a 64% increase in movie attendance at the Regal Gallery Place and Landmark’s E Street Cinemas.
- BID area Metrorail ridership rose to 100,000 per weekday, representing approximately 15% of the system’s total riders. Average weekday ridership on the DC Circulator bus was approximately 7,000 in 2006, with the three millionth passenger served in March 2007.
- The 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 $624 million for fiscal year 2007, or 58% of DC public schools’ locally funded budget.
“These numbers reinforce what is already apparent: Downtown DC is the economic heart of the city, the region’s central gathering place and a model of urban ingenuity,” said Richard H. Bradley, executive director of the Downtown DC BID.
Although 2006 was a successful year for most sectors of the Downtown economy, Matt Klein, chairman of the BID Board of Directors, noted that challenges loom for the area’s future. “We need consistently to demonstrate Downtown’s value to those who visit, live and work in the area — as well as work collaboratively through public/private partnerships to foster continued growth, improve the area’s parks and public spaces and promote environmental sustainability,” he said.
To obtain copies of the 2006 State of Downtown report, contact Rebecca White, research assistant, at sod@downtowndc.org, or visit www.downtowndc.org/news/reports/state_of_downtown_report.
About the Downtown DC Business Improvement District
The Downtown DC Business Improvement District (BID) is a private, non-profit organization that provides safety, hospitality, maintenance and beautification, homeless, economic development, transportation, streetscape and marketing services to Washington’s center city. Property owners agree to tax themselves to provide services to the Downtown BID area, which covers 138 blocks from Massachusetts Avenue on the north to Constitution Avenue on the south, and from Louisiana Avenue on the east to 16th Street on the west. For more information, visit www.downtowndc.org.
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