Washington DC Development Report: 2019/2020
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DEVELOPMENT REPORT 2019 / 2020 EDITION In Public-Private Partnership with CITY RIDGE / DEVELOPED AND OWNED BY ROADSIDE DEVELOPMENT / NORTH AMERICA SEKISUI HOUSE AMERICA / NORTH DEVELOPMENT ROADSIDE BY AND OWNED CITY RIDGE / DEVELOPED The Washington DC Economic Partnership would like to acknowledge our public and private sector board members whose continued financial support and guidance has made the Washington, DC Development Report 2019/2020 Edition possible. PUBLIC SECTOR PARTNERS OFFICE OF THE CHIEF TECHNOLOGY OFFICER PRIVATE SECTOR PARTNERS BOARD MEMBERS EXECUTIVE COMMITTEE Raj Aggarwal Daniel Duke Chase W. Rynd Board Chairman, Think Local First Prinicipal Mid-Atlantic Region, Executive Director, John Falcicchio / Co-Chair Joseph Askew Bohler Engineering National Building Museum Interim Deputy Mayor, Vice President, Government Relations, Josh Etter Tara Scanlon Office of the Deputy Mayor for Verizon Director, Development, Partner, Holland & Knight Planning and Economic Development Kristina Bouweiri Foulger Pratt Shawn Seaman Richard Lake / Co-Chair President & CEO, Reston Limo Angie Gates Principal and Executive Vice President, Managing Principal, Steven Boyle Director, OCTFME Hoffman & Associates Roadside Development Managing Director, Stan Jackson Annie Senatore Omar McIntosh / Vice Chair EDENS President & CEO, AEDC CEO and Lead Event Designer, Senior Vice President, Jean-Luc Brami Norman Jemal Design Foundry Smoot Construction Vice President, Gelberg Signs Vice President, Olivia Shay-Byrne Douglas Development Partner, K&L Gates Jennifer Eugene / Secretary Kenneth Brewer Manager, Engineered Sales, Executive Director, H Street CDC Caroline Kenney Stephen Taylor Washington Gas Ernest Chrappah Managing Director of Commissioner, DISB Director, DCRA Public/Private Development, Joseph Torraca Timothy F. Veith / Treasurer Urban Atlantic Vice President of Business Development, President, Brunson Cooper RCN United Bank Corenic Construction Group, Susan Lacz Corenic Construction Principal & CEO, Andrew Trueblood Keith Sellars / President Ridgewells Catering Director, DC Office of Planning President & CEO, Donna Cooper Region President, Pepco Lisa Mallory Donna Rattley Washington Washington DC Economic Partnership CEO, DCBIA Anita Butani D’Souza Vice President Business Development, Karima Woods / Division Head, HGRM Corporation Gregory O'Dell Comcast DMPED Representative President & CEO, Events DC Mitch Weintraub Director of Business Colette Dafoe Lindsey Parker Partner, Cordia Partners Development & Strategy, Office Managing Partner, Chief Technology Officer, Office of the Deputy Mayor for Nixon Peabody Kristi Whitfield OCTO Planning and Economic Development Timothy Duggan Director, DSLBD Senior Vice President and Commercial William Rich Donna Woodall Regional Group Manager, TD Bank President, Delta Associates Director of Citizenship & Public Affairs, Microsoft WASHINGTON, DC DEVELOPMENT REPORT 2019 / 2020 EDITION CITY RIDGE / DEVELOPED AND OWNED BY ROADSIDE DEVELOPMENT / NORTH AMERICA SEKISUI HOUSE A publication of the In partnership with WDCEP The Washington DC Economic Partnership and global enterprise (WDCEP) is a non-profit, public-private leaders based organization whose core purpose is to on independent actively position, promote, and support thinking and economic development and business objective insights. opportunities in Washington, DC. We stay one step ahead of the vibrant and evolving economic Our mission is to promote DC’s economic landscape by monitoring the pulse of and business opportunities and support DC’s developers, startups, entrepreneurs, business retention and attraction activities. and large and small businesses. Through historical knowledge of the city’s business and economic climate; WDCEP Real Estate Services accurate analytics, data, and research; and • DC Real Estate Search tool community partners and access, WDCEP is (search.wdcep.com) the central organization in Washington, DC • Development Data that connects public and private sectors, (wdcep.co/dcdr) neighborhoods, and communities to local, • Local Market Intelligence national, and international audiences. (wdcep.co/neighborhoods) • Maps (wdcep.co/maps) WDCEP’s purpose and success aligns with • Site Location Assistance its partners in the city: to facilitate dynamic relationships with technology visionaries, Learn more at wdcep.com or artists, real estate entrepreneurs, non-profits, engage with us @WDCEP. THE DC DEVELOPMENT REPORT The DC Development Report is a summary constantly being updated, for the purposes of of the major development and construction this publication all data reflects project status, projects in the District of Columbia. WDCEP design, and information as of August 2019. tracks major developments throughout the Although every attempt was made to year and performs an annual “development ensure the quality of the information census” in the month of August. This research contained in this document, WDCEP and and outreach receive contributions from more Delta Associates makes no warranty or than 100 developers, architects, contractors, guarantee as to its accuracy, completeness, and economic development organizations or usefulness for any given purpose. and results in updates to more than 300 projects. While our database of projects is DEVELOPMENT OVERVIEW 4 ECONOMIC OVERVIEW 12 DEVELOPMENT OVERVIEW 14 MOST ACTIVE DEVELOPERS, ARCHITECTS & CONTRACTORS DEVELOPMENT SECTOR 19 OFFICE 33 RETAIL 47 RESIDENTIAL 63 HOSPITALITY 73 QUALITY OF LIFE NEIGHBORHOOD DEVELOPMENT 84 ANACOSTIA 85 ANACOSTIA WATERFRONT / CAPITOL RIVERFRONT 86 CAPITOL HILL / PENNSYLVANIA AVE, SE 87 GOLDEN TRIANGLE / WEST END 88 RHODE ISLAND AVENUE, NE 89 UNION MARKET / NOMA APPENDIX 92 METHODOLOGY 93 ACKNOWLEDGMENTS DEVELOPMENT OVERVIEW DEVELOPMENT OVERVIEW OVERVIEW ECONOMIC OVERVIEW DEVELOPMENT OVERVIEW MOST ACTIVE Image courtesy of Urban Atlantic ECONOMIC OVERVIEW ECONOMIC OVERVIEW By: Jonathan Chambers, Vice President, Delta Associates GROSS DOMESTIC PRODUCT (GDP) Economic growth in the District of Columbia continued to The District has progressively diversified its economy in order accelerate over the past year, driven heavily by the private to reduce its reliance on the federal government, which has seen sector. In 2018, GDP in the District grew at a rate of 4.0% to growth stagnate for nearly a decade. Between 1998 and 2018, $144.1 billion, well ahead of the 2.9% pace of U.S. GDP growth. the public sector’s contribution to the economy has fallen from Economic activity in the District’s private-sector grew at a 39% to 32%. Mayor Muriel Bowser’s Economic Strategy calls post-recession high of 5.5% during the year, compared to public for growing private sector GDP to $100 billion by the end of sector expansion of just 0.8%. Through the first quarter of 2019, 2021. With annualized private sector GDP totaling $99.0 billion annualized economic growth expanded to 4.4%. as of the first quarter of 2019, the District is well on its way to achieving this goal. The tech industry has proven to be a strong growth center, and the nearby Amazon HQ2 will further enhance the District’s appeal to tech firms. DC GDP YEAR-OVER-YEAR GROWTH RATE 8.0% 6.0% 5.5% 4.4% 4.0% 3.1% 2.2% 2.0% 0.0% -2.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20191 DC Total DC Public DC Private U.S. Total 1. 12-month percentage change as of September 2019. Source: Bureau of Labor Statistics, Delta Associates; September 2019. 4 © 2019 WASHINGTON DC ECONOMIC PARTNERSHIP ECONOMIC OVERVIEW LABOR MARKET The District’s labor market has seen renewed growth in 2019, weighed down by several struggling industries, including Retail. with 9,300 jobs added during the 12-month period ending August The region’s annual pace of growth—1.0% as of August—remains 2019. The private sector continues to dominate job growth, with well behind the 2-4% annual rate of job creation seen in the 10,300 new positions added during the year ending August 2019, major metro areas of the Sunbelt and West Coast, but more compared to a net loss of 1,800 in the public sector. in line with other Northeastern metro areas, and greater than most Midwestern metro areas. As job growth has accelerated in The greater Washington metro area continues to experience the District, the city has captured a larger share of regional job steady job growth, with 33,600 net additions over the year growth—just over one-quarter as of August 2019—overtaking ending August 2019. Regional growth continues to be somewhat Suburban Maryland but remaining well behind Northern Virginia. ANNUAL JOB GROWTH OF SELECT MAJOR METRO AREAS 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.4% 1.2% 1.0% 1.0% 0.5% 2014 2015 2016 2017 2018 20191 United States District of Columbia Washington MSA New York MSA Chicago MSA Boston MSA Los Angeles MSA San Francisco MSA 1. 12-month percentage change as of September 2019. Source: Bureau of Labor Statistics, Delta Associates; September 2019. The District’s 12-month trailing average unemployment rate employment situation in the District to encounter some friction stands at 5.4% as of August 2019, which is a decline of 20 basis by the latter half of 2020 as the national economy slows, with points from the 2018 annual average of 5.6%, and nearly half greater deceleration in 2021, followed by a rebound in later years. the post-recession peak of 10.2% in 2011. However, the level of We project that 8,900 new jobs will be added in the District for unemployment in the District remains higher than the greater all of 2019, followed by another 7,000 positions