What Washington, DC Development Will Look Like in 2030
The Washington DC Economic Partnership Releases its 2015/16 DC Development Report
This year’s report looks 15 years ahead and reveals majority of development is along Metrorail’s Red & Green lines
The Washington DC Economic Partnership (WDCEP), in collaboration with CBRE, releases its 2015/16 DC Development Report, a summary of the major development and construction projects in Washington, DC. With 15 years of development tracked, WDCEP looks 15 years into DC’s development future to reveal areas of the city that will experience the most growth by 2030.
“While DC’s real estate market and project plans will no doubt evolve by 2030, as well as new project announcements, this pipeline data provides a roadmap to where DC’s future growth will occur,” says Chad Shuskey, Senior Vice President, Research & Visual Communications of WDCEP, in the 2015/16 DC Development Report. “Over the next 15 years, development will continue to head east and be focused near the northeast Red Line stations (Union Station to Rhode Island Ave) and southeast Green Line Stations (Waterfront to Congress Heights).”
This year’s report reveals that of the 159 million square feet that is currently under construction or in the pipeline, 78% will be built within a half-mile radius of a Metrorail station.
For the past four years, WDCEP has partnered with CBRE, a global real estate services and investment firm, to provide this economic overview of DC and in-depth analysis of the office, retail, hospitality, and residential markets in the DC Development Report.
“On the demand side, Washington, DC seems to be at an inflection point. The next three years are expected to see above average job growth, which should feed into the need for increased office space,” said Revathi Greenwood, Director of Research, CBRE, Washington, DC. “Non-profits, co-working spaces and cyber security are seeing a strong uptick in activity.”
“We are excited about the future for Washington, DC and its neighborhoods,” says Keith Sellars, President & CEO of WDCEP. “WDCEP has been promoting and supporting economic development and business opportunities in Washington, DC since 2000. This report provides key market data for both the private and public sector and allows WDCEP to further its mission of creating job opportunities for DC residents and highlighting investment opportunities from local entrepreneurs to international investors.”
Next year is also shaping up to be another big year for groundbreakings with projects including the Washington Post Site (1150 15th Street), 655 New York Avenue, and the Conrad Hotel at CityCenterDC expected to start. Conservative estimates show eight to 10 million square feet of new projects starting, while more aggressive projections could have 2016 surpassing 2014’s record of 14 million square feet.
Additional highlights include:
- 1.9 million square-feet of retail space under construction, comparable to the total square feet of Tysons Corner Center.
- It is anticipated that DC will deliver more than 6,000 residential units in 2016; 83% of those developments will be marketed as rental units. This is only the second time since WDCEP started tracking development data that deliveries will have topped the 6,000 mark (6,279 units delivered in 2014) and only the fourth time deliveries will have topped 5,000 units.
- By the end of 2017, DC will have added 2,749 net new hotel rooms, based on projects under construction. These hotels will range from upper midscale (e.g. Hampton Inn) to upscale (e.g. Homewood Suites and Hyatt Place) and luxury (e.g. Trump International Hotel).
Research and outreach for the 2015/16 DC Development Report include contributions from more than 100 developers, architects, contractors, and economic development organizations and resulted in updates to more than 400 projects. Information in the DC Development Report is reported from August 2015.
For additional information regarding the DC Development Report and other publications produced by WDCEP, please visit www.wdcep.com/resources.
About Washington, DC Economic Partnership (WDCEP)
The Washington DC Economic Partnership (WDCEP) is a 501(c)(3) organization aimed to promote economic development and business opportunities for Washington, DC. and enhance the city’s economy through jobs creation, increased tax revenues, retaining existing businesses, and attracting new businesses. WDCEP facilitates economic development through business attraction, business retention programs, and activities including site location assistance, educational seminars and workshops, and networking and relationship building events. WDCEP is a key resource for Washington, DC economic development information and publishes several reports throughout the year including the DC Development Report, DC Doing Business Guide, and Neighborhood Profiles. For additional information, please visit www.wdcep.com.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
Posted on October 30, 2015