DC Market Update – Autumn 2022
Talent, venture capital, and incentives continue to strengthen Washington, DC’s tech ecosystem
Bolstered by a globally recognized talent pool, Washington, DC continues to make advancements in the tech industry. Recent announcements from companies such as FiscalNote, ByteDance, and Google demonstrate our city’s draw for leading businesses and local startups who benefit from our highly specialized workforce, proximity to global decision-makers, and vibrant, inclusive economy.
Read more about Washington, DC’s tech sector and connect with Audrey Polk, VP of Corporate Attraction, for additional information on our ecosystem, the Vitality Fund, and other resources for tech companies.
#3 U.S. Market for Tech Talent (CBRE, 2022)
The DC metro area retained its ranking as the third top tech talent market in the country with 259,000 tech employees as well as 13,000 tech-related degree completions in 2020.
Deal Spotlight
Global tech company Google is expanding its office presence in the District with a second downtown office. Parent company Alphabet recently signed a new 130,000 sublease for Google at 655 New York Ave. NW, which will be joining existing tenants The Advisory Board Co. and WeWork. The new space will supplement the company’s existing office at 25 Massachusetts Ave. NW and will support Google’s plans to increase its workforce in Washington, DC.
For detailed market insights on the District’s tech ecosystem, explore our new interactive map.
This Quarter’s Highlights
Workforce & Economy
DC recognized for top universities and ability to attract talent
The District continues to be a magnet for talent with strong academic institutions and the ability to attract college graduates. The annual U.S. News & World Report National Universities ranking recently recognized four District universities in its top 100 list, including Georgetown, George Washington, Howard, and American University. Howard University recently achieved an additional milestone by raising $122 million in research funding, a record for any HBCU. The funding will be used to support research on AI, machine learning, cybersecurity, health disparities, and genomics. In addition to its own universities, a recent comparative state analysis found that the District was a prominent importer of college graduates from around the country, highlighting the city’s capacity to attract an educated workforce.1 The District provides companies with direct access to this skilled talent, particularly in the following professional and information service industries where the city has a competitive advantage:
| Industry | District Location Quotient |
|---|---|
| Management, Scientific & Technical Consulting Services | 3.20 |
| Scientific R&D Services | 2.56 |
| Computer Systems Design & Related Services | 2.05 |
| Internet Publishing and Broadcasting & Web Search Portals | 1.53 |
| Architectural, Engineering, & Related Services | 1.52 |
JobsEQ. 2022 Q1. District of Columbia Location Quotients.
1. Conzelmann et. al. (2022). Grads on the Go: Measuring College-Specific Labor Markets for Graduates. NBER Working Paper.
Real Estate & Housing
DC acts on ambitious housing equity goals
Maple View Flats, affordable housing project completed in 2019.
The District continues to make strides in its efforts to support the production of affordable housing and advance housing equity through new goals and strategic public-private partnerships. To work towards closing the racial gap in homeownership, the District recently announced a new goal for 20,000 new Black homeowners by 2030. The city will target disparities and create new housing opportunities through a $10 million Black Homeownership Fund. In support of the District’s affordable housing goals, Amazon recently committed $147 million to create and preserve 1,260 affordable homes across the DC metro area, bringing its total investment in the region’s affordable housing stock to $992 million. The company, which chose the Washington, DC region for its second headquarters location, will support six affordable housing projects in the District alongside three more in Maryland and Virginia.
Transportation & Infrastructure
DC to make critical investments in EV and electric bus infrastructure
DC Circulator electric vehicle on National Mall Route. Image Courtesy DDOT.
The District has secured $26 million in federal infrastructure funding to mobilize a clean energy transition to electric cars and buses. The recently approved District Electric Vehicle Infrastructure Deployment Plan will support investments in EV supply equipment and charging stations, while additional funding will allow the District to purchase new electric buses for the DC Circulator system. The District currently has 278 EV charging stations, up from only 75 in 2015. The new funding will allow residents and employees to benefit from access to a reliable EV charging network and will support action towards the District’s ambitious climate and clean energy goals.
DC in the News
Several employers are bringing new jobs to downtown DC
The District will soon welcome three office tenants to downtown DC following new lease announcements. HGA, a national interdisciplinary design firm, will relocate its DC metro region headquarters from Alexandria, VA to the District, leasing 17,000 SF. The American Center for Physics is planning to expand into the District by opening a 30,000 SF office that will serve as a hub for collaboration and convening for the physical sciences community. Most recently, law firm Cravath, Swaine, & Moore signed a lease for the company’s second U.S. location at 1601 K St NW. These announcements exemplify the District’s capacity to successfully attract companies from a variety of industries while diversifying its local economy.