In Public-Private Partnership with THE KILEY / DESIGNED BY WDG ARCHITECTURE A publication by 2016 / 2017 EDITION 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 DC Development Report 2016/2017 Edition possible. PUBLIC SECTOR PARTNERS PRIVATE SECTOR PARTNERS CITY FIRST BANK OF DC BOARD MEMBERS EXECUTIVE COMMITTEE Adam Davis David Weisel Mitch Weintraub Vice President of Development, CEO, Delta Associates Partner, Cordia Partners Foulger-Pratt Development Brian Kenner / Co-Chair Donna M. Cooper Norman Jemal Deputy Mayor, Ana Recio Harvey Region President, Pepco Vice President, Douglas Office of Planning & Director, Dept. of Small & Local Development Corporation Gregory O’Dell Economic Development Business Development President and CEO, Events DC Olivia Shay-Byrne Partner, K&L Gates Richard Lake / Co-Chair Angela Franco Jean-Luc Brami President & CEO, Managing Principal, Vice President, Gelberg Signs Scott Nordheimer Greater Washington Hispanic Chamber Roadside Development Senior Advisor, Urban Atlantic of Commerce Joseph Askew Robin Mosle / Vice-Chair Vice President, Government Relations, Stan Jackson Executive Vice President, Angie M. Gates Verizon President & CEO, Anacostia Economic Director, Office of Motion Picture and The JBG Companies Development Corporation Television Development Kenneth Brewer Executive Director, H Street Community Stephen C. Taylor Jennifer Eugene / Secretary Brian Argrett Manager, Engineered Sales, Development Corporation Commissioner, Department of Insurance, President & CEO, City First Bank of DC Securities & Banking Washington Gas Lisa Mallory Brunson Cooper CEO, DC Building Industry Association Steven C. Boyle Timothy F. Veith Managing Director, Corenic DC Market President, United Bank Managing Director, EDENS Construction Group Lynn Hackney Keith Sellars / President President, Allyson Capital Tara Scanlon Chris Delucchi Partner, Holland & Knight President & CEO, WDCEP President, Delucchi Plus Melinda Bolling Director, Department of Consumer & Timothy J. Duggan Karima Woods / Chris Niehaus Regulatory Affairs Senior Vice President and Director, U.S. Office of Civic Innovation, DMPED Representative Commercial Regional Group Director of Business Microsoft Corporation Michael Stevens Manager, TD Bank Development & Strategy, President, Capitol Riverfront BID Daniel Duke Office of Planning & Principal – Mid Atlantic Region, Economic Development Bohler Engineering WASHINGTON, DC DEVELOPMENT REPORT 2016/2017 EDITION THE KILEY / DESIGNED BY WDG ARCHITECTURE A publication of the In partnership with WDCEP The Washington DC Economic Partnership (WDCEP) purpose and success is a non-profit, public-private organization whose core aligns with its partners purpose is to actively position, promote, and support in the city: to facilitate economic development and business opportunities in dynamic relationships Washington, DC. with nonprofit, change agents, technology Our mission is to promote DC’s economic and business visionaries, artists, real opportunities and support business retention and estate entrepreneurs, and global enterprise leaders attraction activities. Through historical knowledge of based on independent thinking and objective insights. the city’s business and economic climate; accurate We stay one step ahead of the vibrant and evolving analytics, data, and research; and community partners economic landscape by monitoring the pulse of DC’s and access, WDCEP is the central organization in developers, startups, entrepreneurs, and big and Washington, DC that connects public and private small businesses. sectors, neighborhoods, and real estate communities to local, national, and international audiences. WDCEP’s Learn more at wdcep.com or engage with us @WDCEP. CBRE CBRE Group, Inc, a Fortune 500 and S&P 500 CBRE Research sets the company headquartered in Los Angeles, is the world’s world standard for market- largest commercial real estate services and investment based commercial real firm (in terms of 2015 revenue). The Company has estate by providing clients more than 70,000 employees (excluding affiliates), with accurate and timely insight. Revathi Greenwood, and serves real estate investors and occupiers Director of Research & Analysis for the greater through more than 400 offices (excluding affiliates) Washington, D.C. region leads the nine-person local worldwide. CBRE offers a broad range of integrated research group. The team prepares quarterly MarketViews services, including facilities, transaction and project on office, industrial and retail sectors with hotel, multi- management; property management; investment housing and other specialty reports for Washington, D.C. management; appraisal and valuation; property Metro and Baltimore. In addition, CBRE Research provides leasing; strategic consulting; property sales; mortgage thought leadership initiatives aimed at helping clients services and development services. understand new and evolving business and economic trends impacting the local real estate market. THE DC DEVELOPMENT REPORT The DC Development Report is a summary of the projects. While our database of projects is constantly major development and construction projects being updated, for the purposes of this publication all in the District of Columbia. WDCEP tracks major data reflects project status, design, and information as development/construction projects throughout the of August 2016. year and performs an annual “development census” in the month of August. This research and outreach Although every attempt was made to ensure the quality of receives contributions from more than 100 developers, the information contained in this document, WDCEP and architects, contractors, and economic development CBRE makes no warranty or guarantee as to its accuracy, organizations and results in updates to more than 400 completeness, or usefulness for any given purpose. DEVELOPMENT OVERVIEW 6 ECONOMIC OVERVIEW 12 DEVELOPMENT OVERVIEW 14 MOST ACTIVE DEVELOPERS, ARCHITECTS & CONTRACTORS DEVELOPMENT SECTOR 21 OFFICE 33 RETAIL 45 RESIDENTIAL 57 HOSPITALITY 69 EDUCATION NEIGHBORHOOD DEVELOPMENT 80 BELLEVUE / CONGRESS HEIGHTS 82 CAPITOL RIVERFRONT / BUZZARD POINT 84 GOLDEN TRIANGLE / WEST END 86 MT. VERNON TRIANGLE / SHAW / DOWNTOWN 88 UNION MARKET / NOMA APPENDIX 92 METHODOLOGY 93 ACKNOWLEDGEMENTS Leaders. Advocacy. Content-rich programming. WE Strong, effective advocacy on all issues Strategic partnership. impacting the development industry. BUILD. The plaecec foor induostmry thyought-leadership. Mention this ad for complimentary admission to one seminar* For new members only. Must join prior to seminar date. Offer expires 9/30/2017. www.dcbia.org Community. Economy. 25th Year - Biggest Impact Ever! $27.2 million sq. ft. under construction. Multi-year partnership with DC Housing 159.1 million sq. ft. of completed Join today. Authority residents in Ward 7. development since 2001* knowledge * Preliminary figures. October 2016 community WE’RE THE FOUNDATION. Start strong from the very beginning. Regional planners and developers of large-scale projects know that natural gas is the foundation in meeting their sustainability and resiliency goals. What’s more, with natural gas, upfront costs are lowered, it’s more cost effective and you’ll increase the marketability of your project. Make your next project the best it can be. Choose gas. BuildSmartChooseGas.com DEVELOPMENT OVER VIEWECONOMIC OVERVIEW DEVELOPMENT OVERVIEW MOST ACTIVE ECONOMIC OVERVIEW By: Adam Brick, Senior Research Analyst, CBRE ECONOMIC OVERVIEW OF WASHINGTON, DC Washington, DC has seen a steady rise in total employment since 2015. Meanwhile, the unemployment rate continues to decline. 2012. In September 2016, DC recorded over 780,000 employees, DC recorded an unemployment rate of 6.5% in September 2016, representing an increase of 1.8% or 13,800 jobs since September compared to the ten-year high of 10.2% in 2011. The table below presents the historical change and growth in employment levels for DC’s major industry groups over the past five and 10 years. TOTAL EMPLOYMENT 2007–YTD 2016 2012–YTD 2016 CHANGE (000’S) CHANGE (%) CHANGE (000’S) CHANGE (%) Education & Health Services 31.6 32.4 11.1 9.4 Professional & Business Services 12.8 8.4 10.8 7.0 Leisure & Hospitality 19.1 33.8 9.3 14.0 Retail Trade 5.6 31.3 4.7 24.9 Financial Activities 2.0 6.9 2.9 10.4 Other Services 8.8 13.9 3.8 5.6 Transportation & Utilities 0.1 2.1 0.7 16.7 Mining, Logging, and Construction 1.3 9.8 0.6 4.3 Manufacturing -0.5 -29.4 0.2 20.0 Wholesale Trade 0.2 4.2 -0.1 -2.0 Information -4.5 -21.0 -0.4 -2.3 Federal Government 10.9 5.7 -6.1 -2.9 Source: CBRE Research, U.S. Bureau of Labor Statistics; October 2016. Office Employment DC is on track to see an increase in office-using employment straight year of sustained growth. The Financial Activities in 2016, having already observed the creation of 9,500 new and Professional and Business Services also saw slight rises jobs year-to-date in September. The federal government in employment, while employment in the Information sector accounted for the largest share of jobs growth, its second declined 1.2% YTD in September. OFFICE EMPLOYMENT 2015 (000’S) YTD 2016 (000’S) CHANGE (000’S) CHANGE (%) Federal Government 198.1 201.8 3.7 1.9 Professional & Business Services 161.6 164.5 1.6 1.8 Financial Activities 30.1 30.9 0.8 2.7 Information 17.1 16.9 -0.2 -1.2 Other Services 71.0 71.9 0.9 1.3 Total Office Employment*