STATE OF DOWNTOWN DOWNTOWNDOWNTOWN BUSINESS IMPROVEMENTBUSINESS IMPROVEMENT DISTRICT CORPORATIONDISTRICT CORPORATION 1275 K STREET NW1275 K STREET NW SUITE 1000 SUITE 1000 2018 WASHINGTON, DCWASHINGTON, 20005 DC 20005
WWW.DOWNTOWNDC.ORGWWW.DOWNTOWNDC.ORG DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 72
STAFF DOWNTOWNDC BUSINESS IMPROVEMENT DISTRICT SENIOR LEADERSHIP
Neil Albert, President & CEO
Bertha A. Gaymon, Chief inancial f cer
Rachel Rose Hartman, Director of Interactive Marketing & Communications
Ellen Jones, Deputy Executive Director
Nabavi Oliver, Director of Human Resources
Gerren Price, Director of Public Space Operations
Gerry Widdicombe, Director of Economic Development
PUBLICATION STAFF Neil Albert, Rachel Rose Hartman, Essence Smith, Gerry Widdicombe
COVER ART, CREATIVE DIRECTION AND EDITORIAL DESIGN Moya Design Partners
RESEARCH & ANALYSIS DOWNTOWNDC Alex Block, Dan Bramley, Jeannette Chapman, Essence Smith, IS A PREMIER REGIONAL Gerry Widdicombe
EMPLOYMENT CENTER PHOTOGRAPHY WITH DIVERSE Roquois Clarke, Kristen Franklin, Bob Rives ENTERTAINMENT, RESTAURANTS, CULTURAL THANK YOU FOR YOUR DESTINATIONS AND CONTRIBUTIONS IN 2018 SHOPPING. AND YOUR CONTINUED SUPPORT IN THE FUTURE. Cover, Creative Direction and Editorial Design by Moya Design Partners Moya Design by and Editorial Direction Creative Cover, DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018
CONTENTS ABOUT THE BID 01
LETTER FROM THE PRESIDENT & CEO AND THE CHAIRMAN OF THE BOARD 03
YEAR IN REVIEW 05
CURRENT DEVELOPMENT 11
EMPLOYMENT 19
OFFICE MARKET 25
HOTELS, TOURISM & CONVENTIONS 31
CULTURE & ENTERTAINMENT 39
SHOPPING & DINING 45
DOWNTOWNDC LIVING 51
TRANSPORTATION 57
DOWNTOWNDC AT A GLANCE 63
CREDITS 71 01 STATE OF DOWNTOWN 2018 • ABOUT THE BID DOWNTOWNDC.ORG ABOUT THE BID
SCOTT CIRCLE
THOMAS CIRCLE
SAMUEL GOMPERS MEMORIAL PARK
MT. VERNON SQUARE
MCPHERSON FRANKLIN PARK SQUARE
CHINATOWN THE PARK AT PARK CITYCENTER
JUDICIARY PERSHING SQUARE SQUARE FREEDOM PLAZA
The DowntownDC Business Improvement District (BID) Corporation was e i a is a i ate t a i ati This special district, where e t e s a e a ee t ta t emse es t fund services, encompasses a 138-block area of approximately 524 properties 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. DOWNTOWNDC.ORG 02
MIX OF USES IN DOWNTOWN (millions)
Office
74.5 SF 77%
6.5 SF 7% Housing
5.7 SF 6% Hotels
4.2 SF 4% Retail
2.4 SF 2% Museums
2.3 SF 2% Convention Center
0.7 SF 0.75% Entertainment
0.7 SF 0.75% University
SF 0.40.5% Performance Venues 97,400,000 SF 03 STATE OF DOWNTOWN 2018 • LETTER FROM THE PRESIDENT & CEO AND THE CHAIRMAN OF THE BOARD DOWNTOWNDC.ORG LETTER FROM THE PRESIDENT & CEO AND THE CHAIRMAN OF THE BOARD
Dear DowntownDC Stakeholder, We are proud to present the 2018 State of Downtown report the de niti e analysis of the DowntownDC economy and its role in the District and the region. This report is produced annually by the DowntownDC Business Improvement District (BID) to provide thorough and detailed information on various economic sectors that contribute to the health and vitality of DowntownDC, the heart of the District. DowntownDC at the start of 2019 was closer to achieving several major goals due to key local and federal partnerships. One of these goals was the Neil Albert BID and the city’s shared mission to better support President & CEO individuals experiencing homelessness. Mayor DowntownDC BID Muriel Bowser awarded the BID in the fall of 2018 a $1.7 million grant to construct and operate the Downtown Day Services Center at the New York Randall Boe Avenue Presbyterian Church. This facility opened Chairman, for operations in February 2019, providing a single Board of Directors access point for a multitude of services, all with DowntownDC BID the goal of moving individuals into permanent, supportive housing. Through support from the Department of Human Services and through services from Pathways to Housing DC, HIPS and many city agencies and local providers, the Center serves an average of 100 guests each day, Monday-Friday from THE BID WAS AWARDED 9am-5pm. The renovation of the U.S. National Park Service’s A $1.7 MILLION GRANT Franklin Park also moved a major step forward in early 2019 with the signing of a federal law enabling TO CONSTRUCT the District to enter into a cooperative management agreement with the U.S. National Park Service. That AND OPERATE agreement will give the DC Department of General er ices the ability to of cially designate the ID THE DOWNTOWN DAY the operator and manager of the park following its renovation. A groundbreaking for this site is expected SERVICES CENTER in Fall 2019. The year 2018 included many economic highlights for the region including Amazon’s choice of Crystal DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 04
City, Virginia for its second headquarters, securing $500 million in dedicated regional funding for Metrorail and some news and events that took place right here in DowntownDC: the Washington Capitals’ tanley Cup championship and an in u of 1 million additional visitors to the Smithsonian American Art Museum and National Portrait Gallery after the portraits of former President Barack Obama and former First Lady Michelle Obama were unveiled. Despite continued challenges in the of ce market and additional sectors due to development constraints and other factors, DowntownDC pro ided a net scal impact of $791 million in 2018, enough to fund both the DC Metropolitan Police and DC Fire and Emergency Medical Services departments.
The following report highlights DowntownDC’s record-setting performance in several sectors, DowntownDC’s high national and global rankings in several markets and its signi cant scal contribution to the District. ut many challenges remain. ome dif culties are speci c to DowntownDC including businesses moving to other parts of the city for more amenities and lower rents, and other challenges are ones shared by the city such as the increasing cost of doing business, regulatory uncertainty and signi cant competition from surrounding jurisdictions. The DowntownDC BID continues to work daily to support all of DowntownDC’s stakeholders: property and business owners, residents, workers and guests. The majority of our budget continues to support our public space operations department, which includes our 70+ DowntownDC Safety/Hospitality and Maintenance (SAM) ambassadors. Since the ID rst formed in 1 the s clean and safe services have been the core of our organization’s mission. Today, their roles and the role of the organization within the community continues to expand as the demands from our stakeholders rise far above the level of basic services to align with our mission to make DowntownDC a world-class destination. Thank you for your support. Sincerely,
Neil Albert President & CEO, DowntownDC BID
Randall Boe Chairman, Board of Directors DowntownDC BID 05 STATE OF DOWNTOWN 2018 • YEAR IN REVIEW DOWNTOWNDC.ORG YEAR IN REVIEW WASHINGTON CAPITALS, METRORAIL FUNDING AND STRONG DEVELOPMENT AND INVESTMENT INTEREST
The year 2018 included 11,424 rooms (a room se eral signi cant economic supply increase of 4.6%). highlights: the Washington DowntownDC in 2018 had Capitals hockey team 23% share of DC’s hotel won the Stanley Cup for total. DowntownDC hosted a the rst time in franchise record 9.4 million visitors in history; Metrorail received its culture and entertainment dedicated regional funding venues, bolstered by the of $500 million per year to Washington Capitals’ Stanley fund $15 billion of deferred Cup win and popular theatre maintenance; and 900 G performances, exhibits Street NW sold for a District and other sporting events. and DowntownDC record The Walter E. Washington price of $1,273 per SF. Convention Center also Tourism and entertainment had record attendance in markets in 2018 continued 2018 of 1.54 million and is to enhance DowntownDC’s pro ected to bene t in 2 1 economic landscape. from pple s agship store DowntownDC ended the set to open at the Carnegie year with 32 hotels with Library.
DOWNTOWNDC IS A STRONG CONTRIBUTOR TO DC'S EMPLOYMENT AND POPULATION GROWTH DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 06
DC EMPLOYMENT AND POPULATION HISTORY (thousands)
800 799
1.1% 703 702 700
600 1.2% 580
500 2008 09 10 11 12 13 14 15 16 17 2018 % Growth Employment Population
ources . . ureau of abor tatistics for Employment and . . Census ureau for opulation.
Museums in DowntownDC also average daily room rates and performed extremely well in 2018, total revenues; attendance to with the 10 museums together DowntownDC’s eight performing hosting 6.3 million guests. arts venues modestly declined; The Smithsonian American Art the DowntownDC retail market Museum and National Portrait experienced an increase in the Gallery had record attendance vacancy rate as the number of 2.3 million, attributed to the of destination restaurants museum’s new portraits of former and destination shopping President Barack Obama and stores slightly declined; and former First Lady Michelle Obama. DowntownDC Metrorail ridership also moderately declined. Capital One Arena, DowntownDC’s multi-faceted DowntownDC’s set several records sports and entertainment arena in the of ce market in 2 1 total hosted 2.3 million attendees, while occupied of ce space of .2 DowntownDC’s eight performing million acant of ce space arts venues collectively hosted of 6.8 million SF; and a record 760,000 visitors in 2018. vacancy rate of 12.6%.
The year 2018 also included challenges in several economic sectors for DowntownDC: DEVELOPMENT AND the of ce market ended the year with record levels of both INVESTMENT IN occupied and acant of ce space with record rent concessions DOWNTOWNDC IS re ecti e of a tenants market NEAR RECORD the hotel market reported modestly lower occupancy, LEVELS 07 STATE OF DOWNTOWN 2018 • YEAR IN REVIEW DOWNTOWNDC.ORG
DOWNTOWNDC EFFECTIVE OFFICE RENT Though multiple economic sectors’ performance ($ per SF) was down slightly in 2018, almost all DowntownDC economic sectors have national $50.55 or international stature. And this is shown in the strong development and investment activity in $49.34 DowntownDC and DC overall. $50 Development interest in DowntownDC was $46.89 at near record levels with 17 projects under construction totaling 1. billion in the of ce hotel, retail, museum and public sectors. Notably, only two of the projects were ground- $45 up construction with the remainder involving renovations or demolition of existing buildings.
Investment interest was also very high with near record in estment in all classes of of ce $40 buildings of $2 billion and a record average 2008 09 10 11 12 13 14 15 16 17 2018 price of $797 per SF and a record sales amount
Source: Delta Associates for Class A buildings of $1.5 billion and record average price per SF of $964. In addition to the sale of 900 G Street, there were three other sales over $1,000 per SF in DowntownDC in 2018. Of the ten highest sales prices ever in DC, eight OFFICE RENT CONCESSIONS have been in DowntownDC. These high sales prices are evidence of the continued value of ARE AT RECORD LEVELS DowntownDC.
DOWNTOWNDC REMAINS REGIONAL EFFECTIVE OFFICE RENT COMPARISON REGIONAL EMPLOYMENT
ta a i s a e ea ease CENTER m i t (millions of $) DowntownDC in 2018 maintained its role as
E e ti e e t a premier regional employment center. With Per SF 10,000 SF 100,000 SF 190,000 employees, DowntownDC was home to 24% of the District’s employment base on just 1.6% of the city’s land area. DC’s 792,2000 $47 N/A N/A employees were 24% of the region’s employment base. Federal employees in DowntownDC $28 $23 in 2018 totaled 63,200 and 196,200 in all $2.3 of DC and the large presence of the federal $24 $27 government continues to push DowntownDC $2.7 and DC both to further diversify their economies.
DC Northern Virginia Suburban Maryland DC’s employment growth was 1% in 2018 with DowntownDC’s growth (0.9%) restricted by the
Sources: Delta Associates and DowntownDC BID lack of available space for development. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 08
FEDERAL EMPLOYMENT IN DOWNTOWNDC HAS BEEN STABLE AT 37% OVER THE PAST TEN YEARS, WHILE IT HAS DECLINED IN DC FROM 28% TO 25%
TENANT MOVEMENT BETWEEN DC, Both DowntownDC and DC’s MARYLAND AND VIRGINIA employment growth rates
were below the region’s 1.2%, ANNUAL AVERAGE MOVEMENT Northern Virginia’s 1.8% and the nation’s 1.7% growth rates. e a ts i e a ts i et e a t eme t Time Period Into DC Out of DC t a The District once again faced signi cant regional of ce 2016 - 2018 63,000 SF 215,000 SF 152,000 SF market competition. Over the past few years, the city has lost an increasing number 2009 - 2015 135,000 SF 157,000 SF 22,000 SF of companies to Maryland and especially Virginia, 2004 - 2008 57,000 SF 527,000 SF 470,000 SF both of which are home to less e pensi e of ce space.
Source: JLL Research
DC IS LOSING A MODEST NUMBER OF TENANTS TO SUBURBAN MARKETS DUE TO TOUGH REGIONAL COMPETITION 09 STATE OF DOWNTOWN 2018 • YEAR IN REVIEW DOWNTOWNDC.ORG
DOWNTOWNDC REMAINS DOWNTOWNDC GENERATED A KEY TO DC’S FINANCIAL NET FISCAL IMPACT OF $791 HEALTH MILLION IN 2018 -- ENOUGH TO
DowntownDC in 2018 generated an FUND BOTH THE DC METROPOLITAN estimated $1.325 billion in tax and other POLICE AND FIRE AND EMERGENCY re enue for the city while bene tting from $534 million in District expenditures. MEDICAL SERVICES Therefore, DowntownDC in 2018 generated a net scal impact of 1 million enough to fund both the DC Metropolitan Police and DC Fire and Emergency Medical Services DOWNTOWNDC'S NET FISCAL IMPACT departments. Estimate DowntownDC BID Area FY2018 In 2018, Mayor Muriel Bowser built upon the strong partnership between the District and DC Local Tax and Other Revenues $1.325 billion the DowntownDC Business Improvement District (BID) through many investments in Estimated Fiscal Costs ($534 million) DowntownDC projects. In 2018, the city granted $1.7 million to the BID to open and operate a day services center for individuals Net Fiscal Impact $791 million experiencing homelessness. The Mayor’s proposed scal year 2 2 budget includes BID Revenue Share of Total DC Gross Local Revenue 15.9% $18 million for the reconstruction of Franklin
Park and $122 million to build the K Street BID Expenditures Share of Total 6.2% Transitway. DC Gross Local Expenditures
Since 1995, the city has invested in the Source: DC 2018 CAFR, DowntownDC BID, Mayor Bowser´s Fiscal Year 2020 Proposed Budget and Financial Plan following public-private partnerships: Capital One Arena, the Walter E. Washington Convention Center, the Shakespeare Theatre’s Sidney Harman Hall, Woolly Mammoth Theatre, Ford’s Theatre, National Theatre, and the Hamilton, CityCenterDC, the Marriott Marquis Hotel and various retailers in DowntownDC. The city’s total net investment in DowntownDC since 1995 has been approximately $550 million and will have leveraged a projected total of $16 billion in private investment by the end of 2019.
DowntownDC has been instrumental in the city’s efforts to grow its tax base. From 2013- 2018, DC’s nominal tax revenues grew by $1.7 billion per year to $7.8 billion per year in 2018, increasing by 5% per year. The city’s real revenue growth rate from 2013-2018 was . per year more than twice the growth rate in jobs (1.3%) and population (1.6%). DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 10
DC BUDGET RELATION TO GROWTH 2013 - 2018
Annual Growth Rate
Nominal Tax Revenue 5.0%
Real Tax Revenue 3.4%
Population 1.6%
Jobs 1.3%
0
Source: DC 2018 CAFR, DowntownDC BID, Mayor Bowser´s Fiscal Year 2020 Proposed Budget and Financial Plan
DOWNTOWNDC HAD A RECORD 6.8 MILLION SF OF VACANT OFFICE SPACE AND 66 MILLION SF OF OCCUPIED OFFICE SPACE
DOWNTOWNDC DOWNTOWNDC BID WILL LOSE 1.4 PROMOTES NEW ECONOMIC MILLION VISITORS INITIATIVES AT THE END OF The DowntownDC Business Improvement District’s 2019 WITH THE ( ID) Downtown 2 2 ision for the uture 1 - year strategic plan calls for maintaining or growing DEPARTURE OF THE all of DowntownDC’s economic sectors, particularly INTERNATIONAL the of ce market. he ID also proposes four speci c initiati es the con ersion of older of ce buildings SPY MUSEUM to residential use; support for major development AND THE CLOSING projects in DowntownDC; developing DowntownDC into a regional shopping destination; and investment OF THE NEWSEUM in culture and entertainment. 11 STATE OF DOWNTOWN 2018 • CURRENT DEVELOPMENT DOWNTOWNDC.ORG CURRENT DEVELOPMENT SEVEN PROJECTS RAPID HOTEL INDUSTRY DELIVERED IN EXPANSION INCLUDED DOWNTOWNDC; THE MOXY HOTEL 17 UNDER CONSTRUCTION AND EATON HOTEL IN DOWNTOWNDC IN 2018 Development in DowntownDC was strong in 2018, with seven major development projects delivered by the end of the year, representing a total investment of $1.3 billion in DowntownDC. An additional 17 projects were under construction at DOWNTOWNDC HAD the end of 2018, with total investments of $1.5 billion. Future development GROUND-UP plans included several projects with a DEVELOPMENT SITES total investment of $4.1 billion, including AT THE END OF 2018 an estimated $3.3 billion for a full-scale renovation of the FBI headquarters COMPARED TO 111 IN 1995 building.
DowntownDC at year-end 2018 was 98% built out (including projects under construction) with only eight ground-up development sites remaining. Of the 17 projects (totaling 2.7 million SF) under construction at the end of 2018, only two projects (totaling 725,000 SF or 26%) were ground-up construction and the remaining 15 projects (totaling 2.0 million SF or 74%) were building teardowns or INCLUDING 15 BUILDING TEARDOWNS renovations. OR RENOVATIONS DOWNTOWNDC'S $1.5 B OF INVESTMENT IN PROJECTS UNDER CONSTRUCTION REPRESENTS 14% OF THE DISTRICT TOTAL 13 STATE OF DOWNTOWN 2018 • CURRENT DEVELOPMENT DOWNTOWNDC.ORG
DOWNTOWNDC DEVELOPMENT HISTORY
DEVELOPMENT INVESTMENT (billions)DEVELOPMENT INVESTMENT (Billions)
PROJECTS COMPLETED PROJECTS UNDER CONSTRUCTION
2.0
$1.5 1.5 $1.3
$1.0 1.0 $0.9
0.5
0.0 2008 09 10 11 12 13 14 (2) 15 16 17 2018 2008 09 10 11 12 13 14 (2) 15 16 17 2018
(1) Numbers may not equal sum due to rounding (2) Includes the Mariott Marquis Convention Center Headquarters Hotel DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 14
CUMULATIVE INVESTMENT (billions)
15 $14.7 $13.4 $12.9 $13.1 15 $12.7 $14.7 $11.8 1512 $13.4 $12.9 $13.1 $10.9 $11.1 $12.7 $14.7 $10.6 $10.4 $13.4 $11.8 $13.1 12 $12.9 $9.6 $12.7 $10.9 $11.1 $10.4 $10.6 $11.8 129 2018 MARKED (2) $9.62008 09 10 $10.911 $11.112 13 14 15 16 17 2018 $10.4 $10.6 THE HIGHEST 9 CUMULATIVE2008$9.6 09 10 #11 OF PROJECTS12 13 14 (2) COMPLETED15 16 17 2018 INVESTMENT 9 CUMULATIVE # OF PROJECTS(2) COMPLETED CUMULATIVE2008 09 10# OF11 PROJECTS12 13 COMPLETED14 15 16 17 2018 TOTAL ($1.3 139 154 159 166 173 181 186 189 193 197 204 Projects BILLION) IN CUMULATIVE # OF PROJECTS COMPLETED 139 154 159 166 173 181 186 189 193 197 204 (2) Projects COMPLETED$1.5 2008 09 10 11 12 13 14 15 16 17 2018 139 154 159 166 173 181 186 189 193 197 204 PROJECTS SINCE Projects $1.5 2008NUMBER 09 10OF PROJECTS11 12 13 14 (2) 15 16 17 2018 THE CONVENTION 20 $1.5 2008 09 10 11 17 12 13 14 (2) 15 16 17 201817 NUMBER16 OF PROJECTS 16 15 CENTER DELIVERED 15 15 15 14 20 NUMBER OF PROJECTS12 13 13 17 11 17 IN 2003 16 16 NUMBER1015 15 OF PROJECTS 15 15 14 8 7 7 20 12 13 13 7 5 17 5 11 17 5 16 4 16 4 4 10 15 15 3 15 15 14 8 7 7 12 13 137 0 5 5 11 5 4 (2) 4 4 10 2008 09 10 11 12 13 14 3 15 16 17 2018 8 13 14 (2) 15 16 17 2018 Projects Completed By7 Year7 Projects Under Construction at Year-End7 0 5 5 5 2008 09 4 10 11 12 13 14 (2) 15 16 4 17 4 2018 Source: DowntownDC BID 3 13 14 (2) 15 16 17 2018 Projects Completed By Year Projects Under Construction at Year-End 0 2008 09 10 11 12 13 14 (2) 15 16 17 2018 Source: DowntownDC BID 13 14 (2) 15 16 17 2018 Projects Completed By Year Projects Under Construction at Year-End
Source: DowntownDC BID 15 STATE OF DOWNTOWN 2018 • CURRENT DEVELOPMENT DOWNTOWNDC.ORG
DowntownDC also gained a new DOWNTOWNDC museum in 2018 when the National WELCOMES TROPHY Law Enforcement Museum opened a $103 million facility in October. OFFICE BUILDINGS, The museum is designed to provide HOTELS, MUSEUM visitors with the experience of being a law enforcement of cer. DowntownDC gained three trophy Monumental Sports & of ce buildings in 2 1 idtown Entertainment in 2018 also Center, the new headquarters for completed a $40 million project Fannie Mae, by Carr Properties, to renovate Capital One Arena. Capitol Crossing’s 200 Mass. Ave The renovation included the by Property Group Partners and replacement of all arena seats and One Freedom Plaza by Quadrangle upgrades to the common areas Development. The 865,000 SF in an effort to improve the fan Midtown Center building was experience for their approximately designed by SHoP Architects and 2.5 million annual patrons. offered a striking, new addition to DowntownDC, with unique public spaces, illuminated walkways, DOWNTOWNDC’S including 44,000 SF of retail with three announced destination DEVELOPMENT SHARE restaurants. Philotimo, by Michelin DECREASES AS OTHER award-winning chef Nicholas tefanelli and h t and k do AREAS ADVANCE two restaurants by Zuma co- founder Arjun Waney, were set DowntownDC in 2018 was home to deliver at Midtown Center by to 14% of the city’s development the third quarter of 2019. The 200 deliveries and construction activity. Mass project delivered a 430,000 This percentage represented a trophy of ce building into decrease from the years 2001 DowntownDC, including 32,000 and 2008 when DowntownDC SF of retail, upcoming eatery by represented a 23% share of restaurateur Danny Meyer, along development deliveries in the with the District’s largest private District. DowntownDC’s share glass-enclosed rooftop. One was down to 14% of deliveries Freedom Plaza is home to Kirkland by 2013, due in large part to & Ellis, a prominent national law signi cant residential growth in rm which relocated within the ID. other, burgeoning parts of the city and new of ce de elopments in Two hotels also delivered in 2018: other selected submarkets. the Eaton Hotel and the Moxy Hotel, located on K Street one block apart. The Eaton delivered 209 hotel rooms, restaurant American Son by Chef Tim Ma, a radio station, coworking space lm screening space and wellness center. The Moxy opened with 200 hotel rooms and plans to open Baltimore-based tlas roup s rst DC restaurant. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 16
ass e at a it ssi DC HOTEL DEVELOPMENT 2015 - 2022
Hotel % Room Hotels Rooms Growth
2015-2018 GROWTH
5 1,081 10% 19 4,004 13.7%
2018 TOTAL
32 11,784 N/A 144 33,126 N/A
UNDER CONSTRUCTION AS OF 2018
1 360 3.1%
8 1,950 5.9%
PLANNED AS OF 2018
3 495 4.1%
6 1,515 4.3%
2022 ESTIMATE
36 12,639 N/A 158 36,591 N/A
DowntownDC All of DC
Source: DowntownDC BID 17 STATE OF DOWNTOWN 2018 • CURRENT DEVELOPMENT DOWNTOWNDC.ORG
MAJOR DOWNTOWNDC PROJECTS DELIVERED, UNDER CONSTRUCTION & PLANNED (Millions of $)
NT ME 730 15th Street ST VE 73 IN ,4 7 Center for the American Dream 1 PROJECTS (office & conference center) $ N Capital One Arena- TIO interior renovation UC TR NS Planet Word at Franklin School O 8 C 01 ER 2 D IN N 909 E Street office redevelopment 0 U SF 5 51 3 ,9 Riggs DC (formerly Courtyard $ S G 6 T N 7 Marriott at 9th & F) C I ,7 7 E C 2 J N PROJECTS National Children's O E 8 1 Museum R M 0 P M 2 O IN C
Midtown Center 5 2 F S Capitol Crossing - 3 , S 0 200 Mass Avenue T D 0 1 E F C 2 $ R S , E 8 E One Freedom Plaza J 1 8 V 0 0 O I 5 2
R L 7 4 E N P I 0 Eaton by Langham D , 8 Capital One Arena - 3 9 interior renovation ,
1
Moxy Hotel 5
2
National Law 1
Enforcement Museum $
PROJECTS DELIVERED IN 2017 BUILDING SIZE: 490,611 SF
Pod Hotel
1000 F Street
1333 H Street of ce renovation 5 PROJECTS The Architect Hotel
Common Bowman DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 18
PROJECT
TYPES PRIVATE GSA HOTEL HOUSING RETAIL MUSEUM ENTERTAINMENT LIBRARY RELIGIOUS PARK OFFICE OFFICE CENTER
Capitol Crossing - 250 Mass Avenue
Martin Luther King Jr Library renovation 17 Conrad Hotel at CityCenterDC PROJECTS 700 K at Anthem Row
The New 1441 L $ 4, 10 National Bank of Washington project 1 W Hotel renovation PL AN N E D 800 K at Anthem Row ( 5 20 2 ,3 0 8 -2 0 0 1101 & 1111 Sixteenth Street ,6 2 4 5 6 ) S 730 15th Street F 1201 New York Avenue office renovation Center for the American Dream (office & conference center)
Planet Word at Franklin School
909 E Street office redevelopment
Riggs DC (formerly Courtyard 15 Marriott at 9th & F) PROJECTS National Children's Museum
Apple Store at Carnegie Library
Source: DowntownDC BID
FBI Headquarters reconstruction The Canterbury
Capitol Crossing - 200 F Street Chinatown Residential
900 New York Avenue Franklin Park renovation
Capitol Crossing - 200 G Street Jewish Historical Society of Greater Washington Synagogue 1125 15th Street Renovation & New Museum
Capitol Crossing - 201 F Street 25 E Street
St Regis Hotel Addition Gallery Tower
The Aleck The Keckley Building 19 STATE OF DOWNTOWN 2018 • EMPLOYMENT
EMPLOYMENT DOWNTOWNDC REMAINS LARGEST REGIONAL EMPLOYMENT CENTER DowntownDC had an estimated 190,000 employees at the end of 2018, making DowntownDC the largest employment submarket in the region with 24% of employment in the District. Employment in DowntownDC grew from 188,300 at the end of 2017, due mainly to new of ce and hotel employees. During 2018, approximately 3,500 Fannie Mae employees moved into their new headquarters building at Midtown Center (developed by Carr Properties) a downsize from its prior 1.2 million footprint of of ce space in se eral owned buildings in the Tenleytown neighborhood. The Department of Justice moved approximately 1,200 employees out of DowntownDC to NoMa in 2018 with an additional 1,900 employees moving out in late 2019. DowntownDC’s coworking market continued to grow in 2018, bringing many new employees into DowntownDC who may have previously found the area cost-prohibitive. DowntownDC had six WeWork locations in March 2019, the largest concentration of any submarket in the region. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 20
DOWNTOWNDC AND DC REGIONAL EMPLOYMENT HISTORY EMPLOYMENT GROWTH (thousands)
BELOW THE REGION 3,500 DowntownDC gained an estimated 1,700 employees in 2018, a modest 3,291 employment growth rate of 0.9%. This 3,008 rate was limited by DowntownDC’s 3,000 high occupancy costs, when compared to other areas of DC and the region, which makes DowntownDC a more expensive business location. 2,500 Densi cation or more employees per SF of space, is key to future employment growth in DowntownDC
as well as a reduction in vacancy rates. 2,000 In the District in 2018, employment grew by 7,700 employees, or 1%. Federal employment in the District declined by 3,200 employees, or 1.6%, 1,500 1,487 while the private sector grew by 9,700 1,329 employees, or 1.8%. Over the past e years the federal go ernment s 1,012 share of DC employment declined 1,000 975 from 27.5% to 24.8%. The District’s private sector employment growth 704 792 can be partially attributed to the DC go ernment's di ersi cation efforts. 500
DC’s total employment growth in 2018 200 0 10 11 12 1 1 1 1 1 201 was below that of the region’s 1.2% growth rate and signi cantly below DC Northen Virginia Northern Virginia’s 1.8% growth rate.
Suburban Maryland Region
Sources: U.S. Bureau of Labor Statistics, The Stephen S. Fuller Institute at George DOWNTOWNDC IS THE 201 LARGEST REGIONAL EMPLOYMENT SUBMARKET WITH IN 2018, EMPLOYMENT GREW BY .9% IN DOWNTOWNDC, 1% IN DC,
24% 1.2% IN SUBURBAN MARYLAND AND OF DISTRICT 1.8% IN NORTHERN VIRGINIA EMPLOYMENT 21 STATE OF DOWNTOWN 2018 • EMPLOYMENT DOWNTOWNDC.ORG
DOWNTOWNDC DURING 2018, DC EXCEEDED EMPLOYER MOVEMENT
Employment in DowntownDC has 800,000 TOTAL faced challenges in both the federal PAYROLL EMPLOYEES sector and private sector for various reasons, including high cost. FOR THE FIRST TIME In the federal sector, the U.S. General Services Administration (GSA) has been relocating thousands of federal government DOWNTOWNDC PRIVATE SECTOR employees in recent years out of DowntownDC due to high rent EMPLOYMENT GROWTH HELPS TO OFFSET costs, which has negatively affected THE LOSS OF FEDERAL EMPLOYMENT employment in DowntownDC.
REGIONAL EMPLOYMENT CHANGE HISTORY (thousands) Northen Suburban DC as % DC Virginia Maryland of Region
2008 10.1 3.0 -3.5 105%
2009 -2.2 -22.8 -25.2 N/A
2010 10.5 11.8 -5.3 62%
2011 13.9 27.1 4.5 31%
2012 6.5 25.0 5.4 18%
2013 10.8 9.3 7.4 39%
2014 4.8 1.0 9.5 31%
2015 15.8 29.3 10.6 28%
2016 13.1 28.8 13.4 24%
2017 7.4 21.9 12.9 18%
2018 7.7 26.8 3.2 20%
2008-2018 1 1 2 2 2013-2018 11 1 0 2
Sources: U.S. Bureau of Labor Statistics, The Stephen S. Fuller Institute at 201 DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 22
REGIONAL EMPLOYMENT PROJECTIONS REGIONAL FEDERAL (thousands) CIVILIAN EMPLOYMENT
DC Suburban Maryland Northern Virginia Employees % of Total
DowntownDC 2019 4.6 11.0 22.3 63,200 17%
Rest of DC 133,000 37% 2020 5.0 9.1 17.6 All of DC 196,200 54% 2021 4.2 7.1 16.0 Rest of Region 167,70 0 46%
2022 5.2 9.3 17.5 Region 363,900 100% Total 19.0 36.5 73.4 Sources: U.S. Bureau of Labor Statistics and DowntownDC BID 23 STATE OF DOWNTOWN 2018 • EMPLOYMENT DOWNTOWNDC.ORG
In the private sector, many into new or renovated buildings, businesses have moved or have such as Venable LLP and Baker DISTRICT FACES announced moves to other Botts LLP. Bain & Co announced COMPETITION burgeoning of ce submarkets in March 2019 that they would in DC. he legal rm of ish & be moving into a renovation of FROM SUBURBAN Richardson PC recently moved their 1101 16th Street by Akridge. 120 employees to The Wharf. The OFFICE MARKETS legal rm of Williams & Connelly In 2019, several changes will In the past decade, the District’s LLP announced in 2018 they would affect employment growth in of ce tenant loss has uctuated be moving their approximately 640 DowntownDC including the hitting its lowest rate between employees to The Wharf. After movement of 1,900 Department 2009 and 2015. From 2004-2008, these and other law rm mo es of Justice employees to NoMa, DowntownDC will have 41 of the the closing of two museums, the the District lost of ce tenants top 1 law rms in the region Carlyle Group’s return of its Rosslyn at a net rate of approximately and eight of the top 1 rms in operations to DowntownDC and of of ce space per the region. e eral law rms in the opening of new restaurants year. From 2009-2015, the loss 2018 moved within DowntownDC and shopping stores. of of ce tenants declined to approximately 22,000 SF per year. But that rate rose again in 2016-2018, when the net loss of tenants was 215,000 SF per year. DC EMPLOYERS MOVED ecent of ce tenant loss is due to 2,500 JOBS OUT OF DC competition from suburban of ce OVER THE PAST 3 YEARS markets in Maryland and Virginia. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 24
COMPARATIVE TAX RATES RELEVANT TO QUALIFIED HIGH TECHNOLOGY COMPANIES
DC'S QUALIFIED Top Marginal Corporate Income Gross Receipts Capital Gains Tax Rate Tax Rate HIGH TECHNOLOGY Tax Rate COMPANY TAX TREATMENT DC 8.25% 0.01% - 0.14% 8.95% HAS PROVEN SUCCESSFUL QHTC (1) 0.00% 0.01% - 0.14% 8.95% DC'S QUALIFIED Companies HIGH TECHNOLOGY
QHTC COMPANY TAX 6.00% 0.01% - 0.14% 8.95% TREATMENT MAKES Companies(2) DC'S TAX STRUCTURE 0.20% to 0.50% COMPETITIVE IN THE Northern Virginia 6.00% at local level, None REGION - WORKING TO and can be waived RETAIN TECHNOLOGY Suburban 8.95% FIRMS AS WELL Maryland 8.25% None AS ATTRACTING
NEW FIRMS TO (1) During the company's first five profitable years THE DISTRICT (2) For companies that have been profitable for 5+ years Source: Office of the DC Chief Financial Officer
DC EMPLOYMENT PROJECTION GROWTH AS % OF REGION
20 16% 16% 15% 1
12%
10 201 2020 2021 2022
Sources: U.S. Bureau of Labor Statistics, The Stephen S. Fuller Institute at George 201 25 STATE OF DOWNTOWN 2018 • OFFICE MARKET DOWNTOWNDC.ORG OFFICE MARKET RECORD OFFICE BUILDING SALE PRICES AND OCCUPANCY OFFSET BY VACANCY INCREASE
he DowntownDC of ce market Midtown Center (developed by in 2018 experienced record Carr Properties). At the same time, performance despite challenges, of ce acancy in DowntownDC include the record-setting sale of also set a record, rising by 900,000 900 G Street NW for $1,273 per SF to 6.8 million SF, including the square foot (SF), which was both vacancy created by the Department a DowntownDC and District-wide of Justice’s partial move to record sale. DowntownDC of ce NoMa, ahead of plans to vacate occupancy in 2018 rose by 880,000 another 500,000 SF in 2019. The SF to a record 47.2 million SF mostly DowntownDC of ce acancy rate due to Fannie Mae moving into also set a record at 12.6%
In addition to the sale of 900 G Street, three additional 900 G buildings in DowntownDC also sold for over $1,000 per SF in STREET 2018: 1440 New York Avenue SOLD FOR A RECORD NW, 1111 Pennsylvania Avenue $1,273 PER SF NW and 1501 K Street NW. he a erage of ce sales price in DowntownDC in 2018 was $797 per SF (a record-setting DOWNTOWNDC HAS DOWNTOWNDC HAD BOTH RECORD average) and $583 per SF in DC. 75 MILLION SF OCCUPIED AND DowntownDC and DC each set OF PRIVATE, FEDERAL AND DC records in Class a erage of ce GOVERNMENT OFFICE SPACE, OR VACANT OFFICE building sales prices at $964 per SPACE IN 2018 SF and $904 per SF, respectively. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 26
AVERAGE SALES PRICE TRENDS IN DOWNTOWNDC, DC AND REGION (price per SF)
800 $797
700
600 $545 $583 500 $501
400
$314 300 $282 $242 200 $185 100 2008 09 10 11 12 13 14 15 16 17 2018
DowntownDC DC Suburban Maryland Northern Virginia
Source: JLL Research 27 STATE OF DOWNTOWN 2018 • OFFICE MARKET DOWNTOWNDC.ORG
REGIONAL OVERALL OFFICE ASKING & EFFECTIVE RENTS(1) Effective Asking (price per SF)
0 10 20 30 40 50 60 2008 $46.89 $54.21 09 10 DowntownDC BID(2) 11 12 13 14 15 16 17 2018 $50.55 $60.56
2008 $43.20 $49.41 09 10 DC 11 12 13 14 15 16 17 2018 $47.04 $56.01
2008 $24.09 $28.14 09 Suburban 10 Maryland 11 12 13 14 15 16 17 2018 $23.96 $29.06
2008 $26.75 $31.24 09 10 Northern Virginia 11 12 13 14 15 16 17 2018 $27.76 $33.31
(1) Overall rents includes all classes of buildings. (2) Delta Associates' East End submarket is considered to be DowntownDC.
Sources: Delta Associates and REIS DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 28
want to increase their exposure and DOWNTOWNDC the No. 5 city in which foreign investors MAINTAINED FOREIGN want to decrease their exposure. DC tied for o. 1 as the most stable and INVESTMENT INTEREST secure city in the I E sur ey and tied DowntownDC and DC remained an for o. in capital appreciation. attractive location for foreign investment in 2018, though at lower levels than in the past few years. Investment in DowntownDC s of ce market was LARGEST SHARE OF fueled by more domestic investors than DC’S OFFICE SPACE foreign investors in 2018 as foreign investment decreased from 72% in 2017 Despite the trend towards densi cation to 55% in 2018. DC’s share of foreign and lower cost competition, investment over domestic declined DowntownDC continued to hold from 70% in 2017 to 41% in 2018. the largest share of DC s of ce Respondents to the 2019 American space in 2018. DowntownDC’s 75 Foreign Investors in Real Estate (AFIRE) million SF of private, federal and DC survey ranked DC as the No. 10 city go ernment of ce space accounted in the world in which foreign investors for 42% of the city’s total in 2018.
REGIONAL OVERALL VACANCY RATE
2008 6.5% 10.6% 9.0% 12.0% 12.2%
09 8.9% 13.0% 11.4% 14.2% 12.7%
10 9.3% 10.5% 10.7% 13.6% 12.8%
11 9.4% 10.6% 10.1% 13.1% 13.5%
12 10.1% 8.6% 9.1% 13.1% 14.9%
13 9.6% 8.9% 9.1% 13.3% 15.6%
14 10.4% 9.1% 9.4% 14.4% 16.2%
15 11.4% 8.7% 10.0% 14.3% 16.6%
16 12.0% 9.0% 10.4% 13.7% 16.6%
17 11.3% 9.1% 10.1% 12.9% 15.8%
2018 12.6% 8.9% 10.2% 12.2% 15.8%
DowntownDC BID Rest of DC DC Suburban Maryland(1) Northern Virginia(2)
(1) Suburban Maryland is represented by Montgomery and Prince George's counties. (2) Northern Virginia is represented by Alexandria, Arlington, Fairfax, Fairfax City, and Falls Church counties.
Source: CoStar 29 STATE OF DOWNTOWN 2018 • OFFICE MARKET DOWNTOWNDC.ORG
rent and high tenant improvement work with the FBI will continue to FLAT OFFICE OPERATING allowances. The value of concessions lease space nearby. PERFORMANCE rose to a record level from $9.49 per SF in 2017 to $10.01 per SF, an DowntownDC continued to be otal acant of ce space rose from increase of 5.5%. bolstered by the presence of the 5.9 million SF to a record 6.8 million federal government in 2018. With in 2 1 (from 11. of ce DowntownDC’s effective rent overall approximately 6 million SF of GSA- vacancy to 12.6%). This was due to climbed modestly from $49.43 per leased space and 16 million SF of a combination of factors, including SF in 2017 to $50.55, an increase of GSA-owned space, DowntownDC densi cation the deli ery of new or 2.5%, though effective rents declined had more federal of ce space than substantially-renovated buildings and in some areas. any submarket in the country. federal and private tenants moving The announcement by the U.S. to lower rent submarkets in DC and General Services Administration the suburbs. that the FBI should rebuild its GSA LEASES In reaction to the increase in vacant headquarters in its current location of ce space in DowntownDC of ce on Pennsylvania Avenue is positive 6 MILLION SF OF building owners and leasing brokers for the DowntownDC of ce market OFFICE SPACE IN worked to retain tenants and attract in both the short and long-term as new tenants. One way they worked the FBI will need to occupy nearby DOWNTOWNDC AND to accomplish this was through of ce space for se eral years during rent concessions—months of free the reconstruction and rms that OWNS 16 MILLION SF
REGIONAL GSA OFFICE SPACE (millions of SF)
OWNED LEASED TOTAL
15.8 5.8 21.6
20.1 15.6 35.7 Total Total Total 9.4 9.9 19.3 48.5 49.9 98.4 3.2 18.6 21.8
0 0 0
OWNED LEASED TOTAL 7% 22% 33% 12% 22% 37% 19%
20%
41% 31% 20% 36%
DowntownDC Rest of DC Suburban Maryland Suburban Virginia
Source: US General Services Administration DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 30
LARGE CITY OFFICE MARKET COMPARISON
Class A Overall Vacancy Total Office Asking Rent Rate Inventory (price per SF) (millions of SF)
DowntownDC(1) 63 14.8% 48(2)
DC 61 14.1% 168(2)
NYC Midtown 96 7.2% South 69 NYC 81 9.3% Midtown 242
San Francisco 81 7.7% 54
NYC 69 10.8% 90 Downtown
Boston 64 6.0% 60
47 DOWNTOWNDC OFFICE DELIVERIES AND ABSORPTION Seattle 5.4% 49 (square feet) 2,000,000 44 2,000,000 Chicago 14.3% 133
Houston 43 20.1% 37 1,500,000 918,407 Los Angeles 43 18.6% 27 815,181 1,000,000 Denver 40 18.2% 30
500,000 Atlanta 34 14.2% 50
0 N/A Philadelphia 31 10% 40
Dallas 26 21.9% 39 -500,000 2008 09 10 11 12 13 14 15 16 17 18 UC(1) (1) Cushman & Wakefield's East End submarket is used to represent DowntownDC. Deliveries Net Absorption (2) Includes federally-owned office buildings (1) Under construction as of December 31, 2018 Source: Cushman & Wakefield Source: CoStar
Coworking tenants over the past locations with 1.2 million SF and COWORKING several years have leased several the region had 82 coworking SPACE GROWS hundred thousand of of ce locations with 3.8 million SF. space in DowntownDC and DC, WeWork as of March 2019 was AS WEWORK providing a needed boost to the largest pri ate of ce tenant the of ce market. s of arch in DowntownDC with 580,000 BECOMES LARGEST 2019, DowntownDC had 33 SF across six locations and the coworking locations that totaled largest tenant in the rest of DC PRIVATE OFFICE 1.2 million of of ce space - with 480,000 SF across eight TENANT IN DC the rest of DC had 48 coworking locations. 31 STATE OF DOWNTOWN 2018 • HOTELS, TOURISM & CONVENTIONS DOWNTOWNDC.ORG HOTELS, TOURISM & CONVENTIONS STRONG HOTEL MARKET AFFECTED BY NEW SUPPLY
DowntownDC continued to be the fourth strongest downtown hotel market in the nation after New York City, San Francisco and Boston. That strength in 2018 was affected by new hotel openings and a greater hotel room supply in DowntownDC. The Eaton Hotel opened in August and the Moxy Hotel opened in November, adding two hotels with 420 rooms to DowntownDC.
DowntownDC ended the year with 32 hotels (23% of DC’s total) and 11,424 hotel rooms (35% of DC’s total). Additionally, the Conrad Hotel opened in March 2019 at CityCenterDC with 360 rooms and luxury retail from Tiffany & Co. In early 2019, the W Hotel was undergoing a $50 million renovation and the Riggs Washington DC project was undergoing a renovation of $30 to 50 million.
DOWNTOWNDC IS THE 4TH STRONGEST DOWNTOWN HOTEL MARKET IN THE NATION DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 32
DOWNTOWNDC HOTEL PERFORMANCE
Occupancy
76.4% 2012
79.5% 2018
Average daily room rate ($)
300 $256 250 $242 $221 200
150
100
50
0 2012 13 14 15 16 17 2018
Revenue per available room ($) 250 $207 $192 200 $169
150
100
50
0 2012 13 14 15 16 17 2018
Room revenues (millions)
2012 13 14 15 16 17 2018
$591 $632 $671 $714 $770 $840 $792
(1) DC experienced high hotel performance in January 2017, due to the presidential inauguration and the Women's March on Washington.
Source: Smith Travel Research 33 STATE OF DOWNTOWN 2018 • HOTELS, TOURISM & CONVENTIONS DOWNTOWNDC.ORG
NATIONAL REVPAR COMPARISON (Revenue Per Available Room Night)
Compared to DC Region Compared to Large City Downtown Hotels
Chicago / Denver / Rest of Bethesda / Alexandria / New York Boston / Houston / DowntownDC Rockville Arlington City San Francisco Los Angeles / Seattle
2013 $180 $148 $89 $100 $249 $179 $135
2014 $177 $153 $92 $106 $255 $200 $146
2015 $184 $158 $91 $113 $248 $212 $153
2016 $196 $164 $96 $116 $242 $216 $154
2017 $207 $171 $101 $118 $241 $213 $156
2018 $192 $161 $100 $114 $249 $220 $161
Source: Smith Travel Research
DOWNTOWNDC GUESTS HOTELS HOSTED 3.4 M IN 2018
Due in part to increased hotel supply, (compared to DowntownDC’s 1.3%) hotel performance was down in 2018 these hotels posted a revenue decline over the previous year, breaking a of only 1.6%. Approximately 14% of DOWNTOWNDC 5-year trend of record performance. the city’s hotel room demand can be GENERATES In 2018: occupancy decreased by attributed to DestinationDC, the city’s 1.4% to 79.5%; the hotel average destination marketing organization, daily rate decreased by 5.7% to $242 and the events that they promote. per night; Revenue Per Available Room Night (RevPAR) was down 7% DowntownDC’s continued strong hotel 40% to $192; and total hotel revenues performance is supported by business OF DC'S HOTEL in DowntownDC were down 5.7% travelers, convention attendees to $792 million, which equated to and tourists visiting the National 40% of DC’s total hotel revenue. Mall or enjoying DowntownDC’s ROOM SALES many well-known restaurants, lively TAXES Hotels in the rest of DC were also theaters, interesting museums and down in RevPAR performance, but due exciting entertainment venues, to a strong 4.6% increase in supply especially the Capital One Arena. DOWNTOWNDC.ORG 34
NEW HOTEL SUPPLY WILL AFFECT 2019 PERFORMANCE Eight hotels with 1,950 rooms were under construction in DC at the end of 2018, including the 360-room Conrad Washington DC hotel in DowntownDC. In addition, there were six planned hotels in the District at the end of 2018 with a total of 1,515 rooms (495 of which will be located in three DowntownDC hotels at Capital Crossing, in the former Children’s Defense Fund building and the Canterbury project). The total 14 hotels planned or under construction in the District represented a supply increase of 10%. This increase suggests RevPAR performance will be at in 2 1 and 2 2 .
VISITORS TO DC(1) DISTRICTS SETS 2017 (millions) 22.8 22.0 21.3 VISITATION RECORD 20.2 19.0 18.5 The District set a tourism visitation 17.8 record in 2017 (the latest year 16.7 17.3 16.0 16.3 that data is available) with 22.8 million visitors, an increase of 3.6% over 2016. Overseas visitors (not including Canada and Mexico) 20.0 20.8 accounted for 2 million visitors in 18.3 19.3 17.4 2017, the same as in 2016. The city’s 16.1 16.8 15.2 15.5 2 million overseas visitors in 2016 14.8 14.8 ranked eighth in the nation behind New York City, Miami, Los Angeles, Orlando, Las Vegas, San Francisco 1.2 1.5 1.5 1.7 1.7 1.7 1.6 1.9 2.0 2.0 2.0 and Hawaii. 2007 08 09 10 11 12 13 14 15 16 2017
In 2018, visitation to National Mall International(2) Domestic Total museums was a strong 26 million, but down 11% from 2017. Visitation (1) Visitor Data is released as follows: domestic visitation in May-June of each year for the prior year, and intertnational visitation in August of each year for the prior year. to National Mall memorials in 2018 (2) International visitors does not include visitors from Canada or Mexico. was a strong 31 million, but down 4% from 2017. Sources: DestinationDC, D.K Shifflet & Associates: Travel Market Insights, National Travel and Tourism Office, and International Trade Administration, U.S. Department of Commerce. 35 STATE OF DOWNTOWN 2018 • HOTELS, TOURISM & CONVENTIONS DOWNTOWNDC.ORG
ANNUAL VISITORS TO NATIONAL MALL MEMORIALS AND MUSEUMS
MEMORIALS Annual Average (2008-2017) 2018 Total (millions)
Lincoln Memorial 6.6 7.8
Vietnam Veterans Memorial 4.6 4.7
World War II Memorial 4.3 4.7 2008-2017 2018 ANNUAL TOTAL Korean War AVERAGE Veterans Memorial 3.6 4.1
Martin Luther King Jr. 31.4 Memorial 3.8 3.6 29.1 Franklin D. Roosevelt Memorial 2.9 3.3
Thomas Jefferson Memorial 2.7 3.2
Washington Closed Monument 0.6 2017-2018
Sources: U.S. National Park Service, Smithsonian Institution, National Gallery of Art and the U.S. Holocaust Memorial Museum. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 36
MUSEUMS National Annual Average (2008-2017) Museum of 2018 Total Natural History (millions) National Gallery of Art
National Air and Space Museum 4.8 7.1
4.4 4.5 National Museum 6.2 of American History 7.1 National Museum of African American History and Culture National 4.1 Museum of the 3.9 American Indian 1.9 2.5 2008-2017(2) 2018 (1) ANNUAL TOTAL AVERAGE 1.1 1.3 Hirshhorn Museum and Sculpture Garden 30.1 U.S. Holocaust Smithsonian Memorial Castle Museum 26.0 0.8 0.7
1.1 1.6 1.4 1.6
(1) The total attendance in 2018 was affected by partial museum closures at the National Air and Space Museum, the National Museum of American History and the National Museum of Natural History. (2) The National Museum of African American History and Culture opened in 2016 37 STATE OF DOWNTOWN 2018 • HOTELS, TOURISM & CONVENTIONS DOWNTOWNDC.ORG
WALTER E. WASHINGTON CONVENTION CENTER ATTENDANCE # of Events Attendance
2008 180 1,132,000
2009 235 1,112,000
2010 207 981,000
2011 199 998,000
2012 208 1,112,000
2013 201 1,070,000
2014 204 1,327,000
2015 236 1,076,000
2016 213 1,360,000
2017 177 1,176,000
2018 167 1,543,000
2019 N/A 1.0 to 1.1 million Estimate THE CONVENTION CENTER HOSTED A Source: Events DC RECORD 1.5 MILLION ATTENDEES IN 2018
CONVENTION CENTER ATTENDANCE AT AN ALL TIME HIGH THE MAJOR The Walter E. Washington Convention Center hosted 1.5 million guests in 2018, LEAGUE a record year by almost 200,000 guests due in large part to the 2018 Major League BASEBALL Baseball All-Star game and related events such as FanFest held at the Convention ALL-STAR GAME Center. The Convention Center in 2019 is e pected to bene t from the opening of the pple agship store at the Carnegie AND RELATED EVENTS BOOSTED Library site, located across the street from CONVENTION CENTER ATTENDANCE the Convention Center. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 38
HOTEL ROOM NIGHTS GENERATED BY DESTINATION DC
1,500,000 1,321,197 1,334,315 1,220,904 1,200,000 1,120,260 1,091,895 1,051,403 1,049,859 1,039,117 969,829 900,000 863,437 876,387
600,000
300,000
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Convention Center Only Hotel Only Source: Destination DC 39 STATE OF DOWNTOWN 2018 • CULTURE & ENTERTAINMENT DOWNTOWNDC.ORG
CULTURE & ENTERTAINMENT
Collectively, DowntownDC’s ten WASHINGTON CAPITALS museums, eight performing arts venues and the Capital One Arena experienced AND OBAMA PORTRAITS an 8% increase in visitors compared to PROVIDED 2018 BOOST 2017. DowntownDC in 2018 welcomed a The Washington Capitals’ Stanley record 9.4 million visitors to its culture Cup Playoff run and victory brought and entertainment venues, boosted by approximately 220,000 fans to 11 home the Washington Capitals' Stanley Cup playoff games at the Capital One Arena Championship victory and the popularity and thousands of additional fans for of the National Portrait Gallery’s portraits viewing parties hosted in the streets of of former President Barack and First Chinatown, as well as in dozens of bars Lady Michelle Obama. throughout DowntownDC.
TOTAL VISITORS Museums, Capital One Arena, Performing Arts Venues (millions)
9.5 9.4 8.7 8.6 8.3 8.6 8.5 8.3 8.2 8.0 8.3 8.1 7.5 7.5
6.5
5.5
4.5
3.5
2.5
1.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sources: Museums, Performing Arts Venues and Monumental Sports & Entertainment DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 40
DOWNTOWNDC CULTURE & ENTERTAINMENT VISITORS
Museums Capital One Performing Arena Arts Venues
2008 4,326,000 2,600,000 552,429
2009 4,873,000 2,600,000 783,748
2010 5,140,000 2,500,000 663,669
2011 4,977,000 2,500,000 678,187
2012 5,030,000 2,300,000 660,708
2013 5,026,000 2,600,000 629,431
2014 4,899,000 2,500,000 701,488
2015 5,438,000 2,500,000 810,794
2016 5,184,000 2,700,000 733,307
2017 5,371,000 2,500,000 811,628
2018 6,315,000 2,300,000 761,441
Sources: Museums, Performing Arts Venues and Monumental Sports & Entertainment
DOWNTOWNDC IS HOME TO THE CAPITAL ONE ARENA, 8 PERFORMING ARTS VENUES AND 10 MUSEUMS 41 STATE OF DOWNTOWN 2018 • CULTURE & ENTERTAINMENT DOWNTOWNDC.ORG
DOWNTOWNDC MUSEUMS SET AN ATTENDANCE RECORD OF 6.3 MILLION, A 17% INCREASE FROM 2017
DowntownDC’s culture and of over 1 million visitors in entertainment market also faced DOWNTOWNDC comparison to 2017’s attendance some negative news, primarily MUSEUMS SET 2018 and hosted 2.3 million visitors the loss of two museums. The in 2018, due in large part to the Newseum announced plans RECORDS portraits of the Obamas, which to close at the end of 2019, WITH FUTURE were unveiled in February 2018. with Johns Hopkins University The National Building Museum planning to acquire its building MUSEUMS UNDER experienced a 10% increase in on Pennsylvania Avenue. The attendance to 507,000 visitors, Newseum in early 2019 had CONSTRUCTION primarily due to its successful 2018 not yet announced plans for a summer e hibition un ouse. new location. The International DowntownDC museums Spy Museum closed in January experienced a 17% increase in One new museum opened in of 2019, reopening in a larger attendance compared to 2017, 2018: the $103 million National facility at L’Enfant Plaza. These attracting 6.3 million visitors in Law Enforcement Museum. The two museums combined drew an 2018. The Smithsonian American museum in early 2019 estimated estimated 1.2 to 1.4 million visitors Art Museum and National Portrait annual attendance 300,000 visitors to DowntownDC in 2018. Gallery experienced an increase per year. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 42
THEATRE ATTENDANCE IN DOWNTOWNDC Average 2018 (2008-2017)
Warner Theatre 179,771 154,947
National Theatre 167,000 115,042
Ford's Theatre 93,000 76,442
Sidney Harman Hall 90,466 132,033
Sixth & I Synagogue 74,661 66,164
Hamilton Live 58,000 40,703
Lansburgh Theatre 54,134 75,226
Woolly Mammoth Theatre 44,409 41,983
TOTAL 761,441 702,539
ources heatres.
MUSEUM ATTENDANCE IN DOWNTOWNDC Average 2018 (2008-2017) Smithsonian American Art Museum and 1,112,700 National Portrait Gallery 2,304,000 National 1,073,300 Archives 1,181,579
Newseum(1) 800,000 770,000 International 571,000 619,200 Three museums were under construction Spy Museum Ford's Theatre in DowntownDC at the end of 2018: The Historic Site 553,000 533,800 National Children’s Museum at the Ronald National Building 498,500 Reagan Building & International Trade Museum 507,000 Center (scheduled for Fall 2019), Planet National Museum of 97,300 Women in the Arts 132,300 Word (scheduled for Spring 2020) and the Old Post 169,900 Milken Foundation’s Center for the American Office Tower 124,489 The Naval Dream (scheduled to open in 2021). 122,200 Heritage Center 120,222 National Law Enforcement Museum(2) 21,000 N/A National Law Enforcement Officers N/A 29,500 DOWNTOWNDC Memorial Visitor Center IN 2019 IS LOSING THE TOTAL 6,314,590 5,026,400 (1) ewseum attendance data is based off information reported to multiple INTERNATIONAL SPY MUSEUM news sources. (2) pened in ctober 2 1
AND THE NEWSEUM ources useums. 43 STATE OF DOWNTOWN 2018 • CULTURE & ENTERTAINMENT DOWNTOWNDC.ORG
THE WASHINGTON CAPITALS’ 300,000 THIS HISTORIC EVENT RESULTED IN STANLEY CUP ATTENDEES AN ESTIMATED CHAMPIONSHIP TO DOWNTOWNDC AND PLAYOFF RUN BROUGHT CLOSE TO $4.1 M OF NET NEW TAX REVENUE 11 HOME 4 OUTDOOR DOWNTOWNDC GAMES VIEWING PARTIES BARS AND = = RESTAURANTS 220,000+ 60,000+ = ARENA ATTENDEES ATTENDEES 20,000+ PATRONS TO THE DISTRICT
Also, in September 2018, Maria PERFORMING anuela oyanes of cially RENOVATIONS ARTS ATTENDANCE succeeded Howard Shalwitz as AND STRONG the artistic director at the Woolly SLIGHTLY DECREASED, Mammoth Theatre. ATTENDANCE REMAINED STRONG Capital One Arena attendance decreased from 2.5 million in DowntownDC’s eight performing 2017 to 2.3 million in 2018, as arts venues attracted 761,000 the number of events decreased attendees in 2018, which is THE WASHINGTON from 231 in 2017 to 213 in 2018. higher than the 2008-2017 The arena closed for most of the average attendance (703,000), CAPITALS’ summer to complete a $40 million yet lower than 2017’s standalone renovation to improve the fan attendance (812,000). STANLEY CUP WIN WAS THE experience, including replacing In September 2018, the arena seats and renovating Shakespeare Theatre announced DISTRICT’S FIRST common areas. that Simon Godwin, the Associate MAJOR SPORTS In 2019, Capital One Arena will Director at the Royal National host a new sports betting venue as Theatre in London, England, will CHAMPIONSHIP IN permission was granted by a U.S. succeed Michael Kahn as artistic Supreme Court decision and DC director at the completion of the CAPITAL26 YEARS ONE ARENA legislation, both of which passed 2018-2019 season. in 2018. DOWNTOWNDC HAD A RECORD 9.4 M VISITORS TO CULTURE AND ENTERTAINMENT VENUES 45 STATE OF DOWNTOWN 2018 • SHOPPING & DINING DOWNTOWNDC.ORG
SHOPPING & DINING SHOPPING AND DINING POSITIONED FOR SUCCESS IN 2019
Shopping and dining retail 2 1 for signi cant shopping and 2017, due in large part to the markets in DowntownDC were dining growth, with the opening closure of several fast-casual slightly down in 2018, despite of an pple agship store and restaurants, including Au Bon several restaurants securing over a dozen new restaurants Pain, Panera Bread and Taylor international recognition and leading the way. Gourmet. In 2019, the vacancy continued vitality in the shopping rate is expected to decline due and dining sectors. DowntownDC The retail vacancy rate increased to the many expected retail was well-positioned at the start of to 9.14% in 2018 from 8.53% in openings. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 46
DowntownDC remained DOWNTOWNDC home to many Michelin-rated SHOPPING restaurants in 2018, including Minibar, one of two two-star PERFORMANCE rated restaurants in the region, and Fiola, one of 13 one-star No new shopping stores opened rated restaurants in the region. in the DowntownDC in 2018. Four Seven DowntownDC restaurants stores closed and one reopened made Michelin’s Bib Gourmand after closing for renovations. At List out of the 39 in the District the end of 2018, there were 80 (18%): China Chilcano, Jaleo, destination stores in DowntownDC Oyamel, Sfoglina, Succotash, and excitement was building for Unconventional Diner and two world-renowned retailers to Zaytinya. open in 2019: Tiffany’s & Co. and an pple agship store.
Stores at CityCenterDC increased
sales by 15% in 2018. Average DOWNTOWNDC sales per SF were over $1,000 with a few stores recording sales of over RESTAURANTS $3,000 per SF. DowntownDC’s RECEIVED sole retail opening in 2018 was the reopening of Alexis Bittar 19 RESTAURANT at CityCenterDC. This was ASSOCIATION AWARD outweighed by four store closures (Dress Barn, Sports Zone Elite, NOMINATIONS IN 2018 L’Occitane and the Naturalist). DowntownDC in 2017 had 84 destination shopping retailers totaling 763,000 SF and closed out 2018 with 80 destination stores RESTAURANT totaling 750,000 SF. CHANGES IN 2018 The number of destination restaurants in DowntownDC DOWNTOWNDC declined in 2018. Six restaurants SECURES CULINARY opened and 10 restaurants closed in 2018, resulting in a net decline ACCOLADES of four restaurants: 166 in 2017 to 162 in 2018. DowntownDC restaurants in 2018 received a total of 19 The six destination restaurant award nominations out of 100 openings in DowntownDC in from the Restaurant Association 2018 were: Alhambra, American of Metropolitan Washington. Son, Poca Madre, Scotts, Sushi Centrolina, Daikaya Group, Nakazawa and Taco Bamba Wolfgang Puck’s The Source and Taqueria. The ten destination STORES AT José Andrés’s ThinkFoodGroup restaurant closings were Acadiana, all received multiple nominations. Arroz, Coco Sala, Del Campo, CITYCENTERDC Centrolina’s Amy Brandwein won ordon iersch raf ato s ing Chef of the Year and minibar by Pong Dim Sum, Ruth’s Chris INCREASED SALES José Andrés won Service Program Steak House, Tadich Grill and 701 BY 15% IN 2018 of the Year. Restaurant. 47 STATE OF DOWNTOWN 2018 • SHOPPING & DINING DOWNTOWNDC.ORG
7 DOWNTOWNDC RESTAURANTS MADE MICHELIN’S BIB GOURMAND LIST OUT OF 39 TOTAL IN THE DISTRICT (18%)
DOWNTOWNDC DESTINATION RESTAURANTS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Destination Restaurants 126 134 132 137 135 139 145 152 160 166 162
Net Annual Change 10 8 (2) 5 (2) 4 6 7 8 6 (4)
Openings 17 17 4 10 3 10 11 10 9 11 6
Closings (7) (9) (6) (5) (5) (6) (5) (3) (1) (5) (10)
Sources: Dochter & Alexander and DowntownDC BID DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 48
DowntownDC restaurant market DowntownDC Retail Strategy growth was already evident in effort to grow DowntownDC DOWNTOWNDC the rst uarter of 2 1 . s of shopping from 750,000 SF at DESTINATION arch 1 2 1 e destination the end of 2018 to 1.2 million SHOPPING restaurants had opened in SF. This growth will secure DowntownDC, putting the area DowntownDC’s position as a Number of Annual on track for a total of 14 new regional shopping destination, Stores Year Change destination restaurants to open will support a robust and award- by the end of the year. winning restaurant sector and will provide the retail necessary for a robust, mixed-use 55 2012 -1 DOWNTOWNDC DowntownDC. BID FORMULATES The BID in early 2019 had con rmed suf cient demand for RETAIL STRATEGY more shopping in DowntownDC 56 2013 1(1) The DowntownDC BID has and had budgeted resources been working with HR&A Retail for a three-year Retail Strategy Advisors, Dochter & Alexander effort, including the hiring of a and DowntownDC stakeholders Retail Strategy Manager to lead (1) to craft a comprehensive this effort. 68 2014 12
80 2015 12(1)
81 2016 1
84 2017 3
80 2018 -4
(1) CityCenterDC stores opened
Source: DowntownDC BID
CITYCENTERDC'S 25 STORES PRODUCE OVER $5 MILLION PER YEAR IN SALES TAXES 49 STATE OF DOWNTOWN 2018 • SHOPPING & DINING DOWNTOWNDC.ORG
THREE SOURCES OF RETAIL DEMAND: VISITORS, RESIDENTS AND WORKERS 3.4 M HOTEL GUESTS
MEET CHEF JOSÉ ANDRÉS IN AND WITHIN 1/4 MILE Internationally-acclaimed, award-winning chef José Andrés got his start in DowntownDC in 1993 at the Spanish restaurant Jaleo in Chinatown. From his beginnings as a 23-year-old resident of the Lansburgh Apartments, Andrés is today the only chef in the world with both a two-star Michelin restaurant and four Bib Gourmands, (and all of which 190 K happen to be located in DowntownDC). Andrés’ restaurant group ThinkFoodGroup today operates over 30 DAILY restaurants, including six establishments in the DowntownDC BID WORKERS (barmini, China Chilcano, Jaleo, minibar, Oyamel and Zaytinya). Rotating culinary incubator ThinkFoodLab and José Andrés Catering company also operate out of DowntownDC.
In 2010, Andrés began establishing himself as a humanitarian leader DOWNTOWNDC'S by forming World Central itchen (WC ) a non-pro t that seeks to end hunger and poverty by using food to empower communities and RETAIL strengthen economies. WCK has been instrumental in supporting those affected by natural disasters including the 2010 earthquake VACANCY RATE in Haiti, Hurricane Maria and Hurricane Harvey in 2017, as well as supporting individuals throughout the world through the power INCREASED FROM of food. Here at home, WCK in 2018 opened a pop-up location in DowntownDC at 701 Pennsylvania Ave NWto feed furloughed federal 8.53% IN 2017 government workers affected by the longest federal government shutdown in U.S. history. The pop-up served over 12,000 people.
TO We can do anything we want in downtown. ut it should be a place of inclusion, a place of respect. A place where ‘we’, the people, is 9.14% bigger than ‘I’, the person…I know I’m going to be a part of downtown fore er and e er ndres said in a 2 1 ideo clip for the ID in which IN 2018 he accepted a Momentum Award for being a DowntownDC Pioneer. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 50
DOWNTOWNDC RETAIL SPACE OVERVIEW square feet Under Construction 2 , Total Possible Retail Space Non-Retail 4,752,384 First Floor 1,0
Occupied or Vacant Planned , , Announced Space ,0 12 ,
FOOD AND BEVERAGE
High End Dining 642,145 Total Quick Service Restaurant 427,475 Casual Dining 361,656 Bar 145,297 Coffee 56,861
Food and Beverage SHOPPERS' GOODS 1,633,433 Apparel 424,013 47% Department Store 227,000 Home Goods 199,315 Drug Stores / Other Convenience 107,557 Gifts 35,912 Shoppers'Goods Electronics 35,184 1,083,229 Hard Goods 31,916 31% Jewelry 12,291 Cosmetics 10,041
OTHER RETAIL Other Retail Banks and Financial 753,123 Institutions 194,939 22% Entertainment 175,021 Fitness 117,627 Printing, Mailing and Similar Services 89,063
Salon and Spa 64,539 Childcare 36,465 Medical 28,470 Education 25,719
Other 21,280
Sources: Dochter & Alexander and DowntownDC BID 51 STATE OF DOWNTOWN 2018 • DOWNTOWNDC LIVING DOWNTOWNDC.ORG
DOWNTOWNDC LIVING In 2018, DowntownDC’s Class A STRONG CONDO, average apartment rental rent ($3.16 per SF) dipped below DC’s average FLAT APARTMENT rate ( .1 per ) for the rst time MARKET IN 2018 in e years. he DowntownDC rent also dropped from its 2017 rate of DowntownDC in 2018 remained one of $3.19 per SF. The apartment vacancy the most successful housing submarkets in rate in DowntownDC remained steady the District due to its central location and at 5.7%, same as the 2017 rate. The numerous amenities. The DowntownDC Residences at CityCenter once again condominium market had a record had the highest-performing apartments year in 2018 with the highest recorded and condos in DowntownDC with number of condo sales and highest apartment rents above $4 per SF and condo resale price in DowntownDC’s condo prices above $1,000 per SF. history. The apartment market was less positive. Rents slightly declined in 2018 for the second consecutive year and the NEW RESIDENTIAL vacancy rate remained unchanged. PROJECTS DowntownDC’s well-established residential market is comprised of 6,010 market-rate DowntownDC’s residential portfolio is multifamily units, but that market faces set to expand through two announced growing competition from emerging projects: a 135-unit condo building District neighborhoods where thousands with ground-level retail developed by of new residential units are opening Monument Realty in Chinatown, and 80 each year. It is important to note that a apartments developed by Renaissance signi cant portion of new de elopments Centro in its Canterbury development residents work in DowntownDC. that also includes 165 hotel rooms. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 52
CLASS A APARTMENT VACANCY RATES 01234567
2008 2.3% 09 DowntownDC 10 11 12 13 14 15 16 17 2018 5.7%
2008 4% Near 09 DowntownDC 10 11 12 13 14 15 16 Includes the area five blocks north and west of the 17 DowntownDC BID boundary 2018 3.7%
2008 3% 09 DC 10 11 12 13 14 15 16 17 2018 5%
2008 3.4% 09 Bethesda 10 11 12 13 14 15 16 17 2018 5.1%
2008 2.4% 09 Rosslyn-Ballston 10 Corridor 11 12 13 14 15 16 17 2018 4.3%
Source: Delta Associates 53 STATE OF DOWNTOWN 2018 • DOWNTOWNDC LIVING DOWNTOWNDC.ORG
DOWNTOWNDC’S POPULATION WAS 10,020 WITH ANOTHER 28,089 RESIDENTS WITHIN 1/4 OF A MILE
EFFECTIVE RESIDENTIAL RENT RATES (per SF per month)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
DowntownDC $2.63 $2.73 $2.82 $2.89 $3.03 $3.25 $3.19 $3.23 $3.29 $3.19 $3.16 BID Area
Near DowntownDC(1) $2.96 $3.08 $3.08 $3.25 $3.22 $3.33 $3.04 $3.17 $3.47 $3.36 $3.46
DC $2.68 $2.62 $2.86 $3.00 $3.04 $3.05 $3.01 $3.00 $3.11 $3.03 $ 3.17
Bethesda $2.60 $2.46 $2.74 $2.77 $2.82 $2.79 $2.72 $2.82 $2.85 $2.85 $2.91
Rosslyn-Ballston Corridor $2.23 $2.35 $2.50 $2.63 $2.71 $2.68 $2.68 $2.77 $2.72 $2.78 $ 2.96
(1) Includes the area five blocks north and west of the DowntownDC BID boundary.
Source: Delta Associates
DOWNTOWNDC'S AVERAGE APARTMENT RENT WAS DOWNTOWNDC $3.16 PER SF – CLASS A RENTS DOWN FROM WERE BELOW THE $3.19 IN 2017 DC AVERAGE FOR THE FIRST TIME IN FIVE YEARS 54
REGIONAL CONDO RESALE PRICES (per SF) $771 $661 $734 800 $664 $658 $640 $644 $598 600 $508 $427 $460 $429 $425 $399 400
200 DowntownDC Georgetown/ a t Bethesda Rosslyn-Ballston 14th & U Vernon Triangle Corridor
0 08 2018 08 2018 08 2018 08 2018 08 2018
Source: The Mayhood Company
The DowntownDC and Golden the two BIDs) by offering ten- DOWNTOWNDC BID Triangle BIDs are collaborating year tax abatements of up to $20 PARTNERS ON OFFICE- to create a pilot program to per SF. In the current market, incentivize the conversion of District or Federal government TO-RESIDENTIAL older underused of ce buildings intervention is required to grow into residential buildings (up to DowntownDC’s limited housing CONVERSION PILOT 400,000 SF total shared between supply. 55 STATE OF DOWNTOWN 2018 • DOWNTOWNDC LIVING DOWNTOWNDC.ORG
REGIONAL POPULATION
6,285 1.1% Increase 5,636
Total (2)
3,031 1.3% 2,677 Increase
Northern Virginia (1) 2,495 2,304 0.8% Increase Suburban Maryland (1)
602 702 1.0% DC Increase 2010 2011 2012 2013 2014 2015 2016 2017 2018
(1) 2018 is an estimate. (2) Includes Jefferson, WV.
Sources: U.S. Census Bureau; The Stephen S. Fuller Institute at GMU DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 56
DOWNTOWNDCDOWNTOWNDC AND AND DC DC DEMOGRAPHICS DEMOGRAPHICS 2018 2018(1) BID DOWNTOWNDC(1) TOTAL POPULATION 10,290 RACE AGE
White 65%
Asian16% 11% 20-24 SEX Black12% 21% 49% Hispanic 10% 25-29 15% FEMALE 30-34 3% 2 or + races 10% 51% 3% Other 35-39 MALE American Indian 0% Pacific Islander 0%
EDUCATIONAL HOUSEHOLD TOTAL HOUSEHOLDS: 6,273 ATTAINMENT Average Single Female Median Home Household Size Heads of Value Households 49% 20% 31% Owner $594,499 1.5 3% Occupied 13% 6% HOUSEHOLD INCOME Share of Households With Incomes of $75,000 or More Average Annual Income $149,549 Not Completed Bachelor's Graduate/ Completed High School(3) Degree Professional Median Income High School Degree $113,489 68% DC(1) TOTAL POPULATION 702,455(2) RACE AGE
Black 47% White 45% Hispanic 11% 9% 20-24 SEX Other 5% 10% 53% Asian 4% 30-34 FEMALE 11% 2 or + races 3% 25-29 American Indian 1% 8% 47% Pacific Islander 0.1% 35-39 MALE
EDUCATIONAL HOUSEHOLD TOTAL HOUSEHOLDS: 306,738 ATTAINMENT Average Single Female Median Home Household Size Heads of Value Households 34% 33% 37% 24% Owner $622,516 2.1 16% Occupied 9% HOUSEHOLD INCOME Share of Households With Incomes of $75,000 or More Not Completed Bachelor's Graduate/ Average Annual Income $119,531 Completed High School(3) Degree Professional High School Degree Median Income $77,686 51% (1) ESRI data as of July 2018. (2) U.S. Census Bureau estimated D.C. population to be 702,455 as of July 1, 2018 an increase of 1% from July 2017. (3) Includes people who have completed some college and Associate Degrees. .
Sources: ERSI forecasts courtesy of Washington, DC Economic Partnership 57 STATE OF DOWNTOWN 2018 • TRANSPORTATION DOWNTOWNDC.ORG TRANSPORTATION
TRANSPORTATION ACCESS DEDICATED FUNDING FOR METRO OFFERS DOWNTOWNDC The Washington Metropolitan Area Transit Authority (WMATA) in 2018 hit a major milestone after many years COMPETITIVE ADVANTAGE of deliberation: securing dedicated regional funding for Metrorail, an investment of $500 million per year. The DowntownDC is the center of the region’s District pledged $178 million, Maryland contributed $167 rail, bus and automobile transportation million and Virginia pledged $154.6 million in annual systems, offering the area a top contributions. competitive advantage. DowntownDC is also the region’s largest walkable business district with signi cant bike infrastructure and access as well as the new addition of electric scooters. DowntownDC has served over the years as a pilot AVERAGE DAILY METRORAIL EXITS IN DOWNTOWNDC transportation area for bikeshare, the DC Circulator, bus shelter maps, pedestrian Metro Center 23,883 countdown signals, the extension of 6,915 Metrorail late-night service hours to Gallery Place 22,961 support the new Walter E. Washington 10,008 Convention Center and the District’s blue way nding system and more recently for McPherson 14,003 Square 2,320 multimodal value parking in Chinatown. 7,967 Archives 2,680
DC METRORAIL TOTAL ANNUAL Judiciary 7, 392 SYSTEM RIDERSHIP Square 1,130 7,190 Average Weighted Federal Weekday Exits Triangle 2,083 752,000 750,000 Mt Vernon Sq./ 4,536 Average Weighted Convention 2,608 Weekend Day and Center Holiday Exits(1)
700,000 Weekday Total 87,933
626,000 626,000 Weekend Total 27,743
600,000 (1) Weekday holidays are included as either Saturday or Sunday exits. 2008 2018 Source: WMATA
Source: WMATA THE DC REGION SECURED $500 M IN DEDICATED REGIONAL FUNDING FOR METRORAIL 59 STATE OF DOWNTOWN 2018 • TRANSPORTATION DOWNTOWNDC.ORG
This funding was necessary to sustain the area’s largest public transit system into the future and cover costs related to deferred maintenance and repair work that threatens to further debilitate the system. As the heart of the District and home to seven Metrorail stations, Metro and its performance and reliability remains crucial to the economic health of DowntownDC, including DowntownDC s of ce market (nearly a third of the jobs in the District), residential market and the culture and entertainment sector. Even with dedicated funding, Metro’s future remained unclear in the face of growing competition from ride-hailing companies and maintenance and repair requirements to safely operate an aging system. o ful ll the system s potential etro must translate dedicated funding into improved service for riders.
METROBUS RIDERSHIP CHALLENGES DowntownDC’s seven Metrorail stations served a combined average of 87,933 passengers each weekday in 2018, maintaining the area’s role as the District’s major commuting hub, but down 87,933 PASSENGERS WERE from 89,732 passengers in 2017. DowntownDC was home to two of the top three busiest SERVED EACH WEEKDAY BY Metrorail stations in 2018: Metro Center and DOWNTOWNDC’S Gallery Place-Chinatown. On weekends in 2018, when track maintenance was more frequent, 7 METRORAIL STATIONS
DC AND REGIONAL NON-AUTO COMMUTING SHARE
DC Residents Commuting to Work Workers from Anywhere Commuting to Jobs in DC
Public 32.6% Public 35% Transportation Transportation
5.0% 2.6% Bicycle Bicycle
12.7% 5.6% Walked Walked
Other 2.7% Other 2.7% Means Means
Total 375,380 52.9% Total 844,345 TOTAL 45.9%844,345
Source: American Community Survey DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 60
Metrorail ridership in DowntownDC efforts ha e been bene cial agencies, as well as board members decreased to a daily average of Metrorail did achieve its highest from Maryland and Virginia. The 27,743 passengers, down from on-time performance in more than DowntownDC BID continues to 28,760. seven years in September 2018, strongly support the addition of when more than 90% of 13.1 million late-night service to offer workers Metrorail’s total system ridership passenger trips arrived on-time. who support the late-night economy rose slightly in May 2018 after years affordable and convenient transit of decline following the SafeTrack at the end of their workday. maintenance and repair program. Additionally, late-night service Average weekday ridership rose METRORAIL LATE- supports increased revenue in from 620,000 passengers in 2017 NIGHT SERVICE DowntownDC restaurants, bars and to 626,000 passengers in 2018. It entertainment venues as well as is important to note that Metrorail HOURS retailers and entertainment venues reports its annual ridership based The District representatives on across the District. on ridership in May of each year. WMATA’s board of directors 2018 ridership, though up, was still advocated for the modest return WMATA already operates the fewest 126,000 rides below Metrorail’s 2008 of some late-night Metrorail hours of service per week of any U.S. peak of 752,000 average weekday operating hours to be included subway system. WMATA claims they passengers. in WMATA’s upcoming budget. need time for track maintenance, There were signs in 2018 that But, they were strongly opposed but elsewhere in the world, transit Metrorail’s recent maintenance by WMATA management, federal systems operate more hours of 61 STATE OF DOWNTOWN 2018 • TRANSPORTATION DOWNTOWNDC ACCOUNTED service while still completing their preventative maintenance tasks. Similarly, peer cities offer FOR 18% OF ALL CAPITAL robust ‘night owl’ bus networks in lieu of rail service. WMATA could do the same while they BIKESHARE ARRIVALS impro e their track work ef ciency supporting the District’s late-night economy.
DOWNTOWNDC EARNED A WALK- SCORE
DC CIRCULATOR SUPPORTS LATE-NIGHT ECONOMY; ADDS BATTERY-ELECTRIC FLEET DowntownDC in 2018 continued to be a hub for a majority of the DC Circulator’s routes, including its two most pro table routes ( eorgetown to Union Station and Woodley Park/Adams Morgan/ McPherson Square Metro). The DC Circulator continued to serve DowntownDC’s late-night economy by providing late-night transportation. The Georgetown to Union Station route remained operational through midnight on weekdays and Sundays and to 3am on Fridays and Saturdays. The District in 2018 also added 14 new, 100% battery-electric buses the largest electric eet on the East Coast.
METROBUS USE DECLINES Metrobus ridership in the city in 2018 declined 2.7% as Metrobus faced competition from many of the same service alternatives competing with Metrorail. Metrobus’ popularity is affected by the infrequency of buses on many routes and increased congestion on the roads, slowing buses and preventing them from executing their routes on time. In response to this and other challenges, Mayor Muriel Bowser announced dedicated funding to create reserved bus lanes within the District, including a dedicated bus lane pilot project on H and I streets NW, from Pennsylvania Avenue to New York Avenue. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 62
SCOOTERS AND NON-AUTO REGIONAL CAPITAL BIKESHARE BIKES EXPAND IN TRANSPORTATION SYSTEM DATA Number Number THE DISTRICT THRIVES IN of Bicycles of Stations
The District in 2018 was DOWNTOWNDC 1,170 2011 named a old ike riendly DowntownDC’s accessibility Community by the League remained one of the of American Bicyclists and community’s greatest 1,700 2012 189 DowntownDC accounted for assets and continued to be 18% of all Capital Bikeshare supported and enhanced by arrivals in DC in 2018. DC the DowntownDC BID in 2018. expanded its number of Capital 2,600 2013 248 DowntownDC secured a 100 Bikeshare by 36 stations in Mobility Score (gauged by 2018. how easy it is to get around) 2,800 2014 337 In addition to an in u of new by TransitScreen and a 99 electric scooter providers in DC Walkscore in 2018. in 2018, the District raised limits In 2017, the most recent data 3,070 on the number of dockless 2015 355 available from the American scooters and bikes that each Community Survey, 35% of approved company could DC employees opted for maintain in the city (from 400 3,700 2016 405 public transportation to get vehicles in 2017 to 600 vehicles them to work, while 33% of in 2018). Dockless vehicle DC residents chose public operators were also offered transportation to commute to 4,170 2017 490 the potential to increase their work as Metro’s performance eets of bikes or scooters at the -0.5% +7% rose. That same year, 13% of end of each quarter. At least DC residents chose to walk to 4,150 2018 526 11 new scooter and dockless work, while 5% biked. bike companies applied to operate in DC in 2018 and two Sources: Capital Bikeshare and DowntownDC BID companies ended operations.
CAPITAL BIKESHARE ARRIVALS IN DOWNTOWNDC AND DC
Arrivals in DowntownDC Arrivals in rest of DC
2011 207,619 962,999
2012 348,286 1,559,674
2013 437,488 1,916,666
2014 482,562 2,129,783
2015 439,268 2,246,366
2016 534,242 2,379,792
2017 559,761 2,604,244
2018 524,598 2,874,892
Sources: Capital Bikeshare and DowntownDC BID 63 STATE OF DOWNTOWN 2018 • DOWNTOWNDC AT A GLANCE DOWNTOWNDC.ORG
DOWNTOWNDC AT A GLANCE few weeks of opening, The Center was DOWNTOWN DAY SERVICES serving over 100 guests per day, above CENTER PROVIDES its daily goal for support offered and additional services and partnerships HOMELESS RESOURCES were being explored to further augment the available resources.
Individuals experiencing homelessness in DowntownDC gained a centrally-located he Center helps the ID to ful ll its single-access point for services at the new longstanding commitment to support Downtown Day er ices Center ( he all members of the DowntownDC Center ) which opened in ebruary 2 1 community. For years, the BID has at the New York Avenue Presbyterian contracted with Pathways to Housing Church. The DC Department of Human DC for street outreach services to Services (DHS) in 2018 awarded a $1.7 support individuals experiencing million grant to the BID to design, build homelessness and SAM ambassadors and operate The Center, where services are trained to support the homeless are offered by Pathways to Housing DC, and connect them with resources. HIPS, District agencies and a range of other public and private partners. According to the city’s annual point in time count in January 2018, 82 Resources and services offered at The individuals were unsheltered in Center include: food and beverages, DowntownDC on the night of the restrooms, showers, laundry facilities, count, representing 1.2% of the city’s housing ser ices non-dri er identi cation homeless population on that evening. employment assistance, case management, The BID in 2018 began conducting its legal services, healthcare and more, all with own monthly counts of unsheltered a central goal of moving individuals into individuals on the last Thursday of each permanent supportive housing utilizing month and found that the unsheltered the Housing First model. The Center is population in DowntownDC ranged open from 9am-5pm Monday-Friday, when from a low of 72 people in March to a most area shelters are closed. Within a high of 165 in July. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 64
DOWNTOWNDC Item & Location
MAJOR BEAUTIFICATION PROJECTS
FREEDOM PLAZA HERALD 2 SQUARE
HANGING BASKETS THROU- GHOUT 180 THE BID
LANDSCAPED PLANTERS ALONG PENNSYLVANIA 202 AVENUE
BISTRO 89 Franklin Park CHAIRS 30 Indiana Plaza 20 Federal Trade Commission THE THE DC headquarters DEPARTMENT OF 19 Chinatown Park HUMAN SERVICES 15 Herald Square (DHS) IN 2018 AWARDED A $1.7 24 Franklin Park MILLION GRANT 7 Indiana Plaza TO THE BID TO BISTRO 6 Federal Trade TABLES Commission CONSTRUCT, OPEN headquarters AND OPERATE 5 Chinatown Park THE CENTER 4 Herald Square 65 STATE OF DOWNTOWN 2018 • DOWNTOWNDC AT A GLANCE DOWNTOWNDC.ORG
LANDLORD FUND BID REINVIGORATES BECOMES FULLY DOWNTOWNDC DOWNTOWNDC CAPITALIZED IS HOME TO FOUNDATION The DowntownDC BID in 2018 also 1,882 TABLES In an effort to fully support helped individuals experiencing the philanthropic work of the homelessness through housing + 5,056 CHAIRS DowntownDC BID, in 2017 the support in the District by BID began investing in formalizing assisting to fully capitalize the AT 179 SIDEWALK the BID’s 501(c)3 foundation, District’s $500,000 Landlord Partnership Fund, thanks to CAFES AS OF establishing its mission and path generous contributions from many JUNE 2018 forward. In 2018, the BID kicked off stakeholders as well as a signi cant the new foundation, through the grant from JPMorgan Chase. The efforts of a development consultant fund rst announced by ayor and a new board of directors. Muriel Bowser in Oct. 2017, covers The foundation’s primary focus certain costs for landlords who is to support the redevelopment lease to individuals whose rent is The BID spearheaded the effort of Franklin Park, the Downtown subsidized by the city. The fund is to capitalize the fund, which is Day Services Center, public space improvements in DowntownDC and designed to encourage landlords managed and administered by the to relax screening criteria and other related efforts, all of which Coalition for on- ro t ousing ultimately increase housing options serve to enhance the DowntownDC for individuals experiencing and Economic Development BID, support the community and homelessness in the District. (CNHED). increase value. DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 66
as part of a partnership with the FRANKLIN PARK BID PROGRAMS AND Indiana Society, adding seating REDEVELOPMENT BEAUTIFIES PARKS to existing offerings outside of the Federal Trade Commission, at ADVANCES AND PUBLIC SPACES Herald Square and in Franklin and Chinatown Parks. The BID has been hosting free Franklin Park’s redevelopment hit programming in Franklin Park and major milestones with the awarding of other public spaces in DowntownDC the design and engineering contract The BID also repaired 2,132 in an effort to increase vibrancy in March to Studios Architecture and bricks in 154 locations, mostly in and community in parks and plazas Land Collective and the signing into the Chinatown and Gallery Place throughout the BID. In 2018, the BID federal law of legislation that enables areas and completed landscaping hosted DowntownDC Live concerts the District to enter into cooperative duties, beautifying Freedom Plaza in Franklin Park as well as Co- management agreements with the and Pennsylvania Avenue planters Working with Comcast, Can I Kick It: National Park Service (NPS). Franklin through a partnership with the US DowntownDC Summer Flicks offered Park, a nearly 5-acre NPS-owned General Services Administration free martial arts movies set to live park on K Street NW, is expected to and the National Park Service, hip-hop on Freedom Plaza, Children’s break ground in the fall of 2019 and beauti ed treebo es in Chinatown Story Hour and Chinatown Block undergo a signi cant reno ation by under the Friendship Archway, and Party were hosted in Chinatown Park the District Department of General installed hanging ower baskets and other event programming was er ices to become a e ible ibrant throughout the BID. The BID in offered for the community. and programmed 21st century park. 2018 also offered a total of 173 Upon the park’s reopening, the red bistro chairs and 46 tables DowntownDC BID will operate and in parks and plazas throughout The BID in 2018 began offering red manage the park. DowntownDC. tables and chairs in Indiana Plaza
UNSHELTERED INDIVIDUALS IN DOWNTOWNDC # COUNTED IN BID
200 165 157
93
100
0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FRANKLIN PARK 2017 2018 2018 6.904 total DC homeless (1) IS EXPECTED 1.3% DowntownDC % of DC homeless (1) TO BREAK GROUND (1) The Metropolitan Washington Council of Government's (MWCOG) report on D.C. homelessness.
IN FALL 2019 Source: DowntownDC BID and MWCOG 67 STATE OF DOWNTOWN 2018 • DOWNTOWNDC AT A GLANCE DOWNTOWNDC.ORG
BID ADDRESSES DISORDER WITH CHINATOWN STAKEHOLDERS AND OTHERS In an effort to pool collective resources and support around mitigating disorder, the BID held Gallery Place and East End stakeholders meetings in 2018, focusing on two areas that have experienced increases in crime.
Overall, crime in DowntownDC was slightly up in 2018 with a 4% increase in total reported crime incidents. This followed the same trend for the District, which experienced a 2% citywide increase in reported crimes. In DowntownDC in 2018, there were 1,168 reported incidents of theft, a slight decrease from 1,179 in 2017. There were three reported homicides in DowntownDC in 2018 (157 in the District total), 78 robberies (out of 2,017 in the District) and 44 assaults with a dangerous weapon (out of 1,657 in the District), all representing increases in reported incidents in DowntownDC o er 2 1 gures. Incidents of stolen auto in DowntownDC decreased from 73 in 2017 to 56 in 2018.
THE BID CONVENED GALLERY PLACE AND EAST END STAKEHOLDERS MEETINGS IN 2018, FOCUSING ON TWO AREAS THAT HAVE EXPERIENCED IN 2018, THE BID UNVEILED THE INCREASES IN DISORDER DOWNTOWNDC FOUNDATION TO SUPPORT THE ORGANIZATION'S PHILANTHROPIC EFFORTS DOWNTOWNDC.ORG STATE OF DOWNTOWN 2018 68
ASSETS IN DOWNTOWNDC 3,987 0 THE BID IN Manhole 2018 BEGAN Tree 3,866 OFFERING Streetpole 3,263 Tree Box 2,951 Planter 1,749 RED TABLES AND CHAIRS Parking Meter 1,258 Handicap Ramp 1,104 IN INDIANA PLAZA Trash Can 805 Bike Rack 755 Sprinkler 552 THE DOWNTOWN DAY Standpipe 535 SERVICES CENTER SERVES Bollard 495 MORE THAN Bench 492 Fire Hydrant 402 GUESTS Recycling Bin 368 Total Assets PER DAY Bulk Waste 335 Wayfinding Sign 243 24,471 Sidewalk Café 196 Catch Basin 179 DOWNTOWNDC Publisher Box 163 Upole 147 AED 140 REPAIRED Traffic Control Box 116 Vendor Carts 90 Bus Stop Sign Pole 85 2,132 Bus Shelter 83 Alley 48 BRICKS Call Box 32 Mail Box 17 IN 154 LOCATIONS Metro Entrance 15 69 STATE OF DOWNTOWN 2018 • DOWNTOWNDC AT A GLANCE DOWNTOWNDC.ORG
ANNUALANNUAL REPORTED REPORTEDCRIME CRIME INCIDENTS INCIDENTS ININ THETHE DOWNTOWNDC DOWNTOWNDC BID BID AND AND DC DC
DC DOWNTOWNDC
% CHANGE FROM PREVIOUS YEAR 38,320
37,187 37,118 4% 35,768 35,202 34,089 33,547 33,547 33,023 33,110 2% 31,512 31,127
2008-2009 TOTAL 2017-2018 CRIMES
-9% 2,404 2,250 2,059 2,065 1,921 1,911 1,879 1,815 1,750 1,683 1,558
0 -12% 08 18 08 18
DC DowntownDC ROBBERY ASSAULT WITH BURGLARY WEAPON
0 3,768 4,135 2,915 2008 2008 92 1,407 150 96 47 1,657 2,017 2018 2018 44 2008 2018 78
Source: Metropolitan Police Department and DowntownDC BID The BID has been hosting free programming in Franklin Park and 154 other public spaces in DowntownDC in an effort to increase vibrancy PUBLIC SPACES and community in parks and plazas WERE REPAIRED throughout the BID AND BEAUTIFIED FOR THE COMMUNITY 71 STATE OF DOWNTOWN 2018 • CREDITS DOWNTOWNDC.ORG
THE DOWNTOWNDC BID THANKS THE FOLLOWING FOR THEIR CONTRIBUTIONS TO THIS REPORT:
Carr Properties National Gallery of Art CBRE Group, Inc.* National Law Enforcement Museum Center for Regional Analysis, ational aw Enforcement f cers George Mason University Memorial CityCenterDC National Museum of Women in Clyde’s Restaurant Group the Arts CoStar Group, Inc. US National Park Service Cushman & Wake eld* National Portrait Gallery* DC f ce of the Chief inancial National Theatre f cer Naval Heritage Center DC Public Library* Oxford Properties Delta Associates Property Group Partners* Destination DC Real Capital Analytics District Department of Recity Transportation The Residences at CityCenter* Dochter & Alexander Retail Advisors Shakespeare Theatre Company* Eaton Hotel* Sixth & I Historic Synagogue ESRI Smith Travel Research Events DC* Smithsonian Institution Ford’s Theatre* Stephen S. Fuller Institute General Services Administration US Bureau of Labor Statistics Hines US Census Bureau International Spy Museum US Department of Commerce, f ce of ra el and ourism JBG Smith Industries Jones Lang LaSalle US General Services Administration The Mayhood Company US Holocaust Memorial Museum Lincoln Property Company* Washington Metropolitan Area Metropolitan Police Department Transit Authority of DC Washington DC Economic Metropolitan Washington Council Partnership of Governments Woolly Mammoth Theatre Monumental Sports & Entertainment* Special thanks to organizations US National Archives that provided photos or National Building Museum* renderings, indicated with an National Capital Planning Commission asterisk (*).