DC Market Update – Q3 2021
WATER TECHNOLOGY COMPANY XYLEM EXPANDS TO THE DISTRICT
Xylem, a $4.9B NY-based water technology company, signed a lease for 17,000 SF of office space in the Capitol Riverfront neighborhood. The company will continue collaboration on wastewater sustainability projects with DC Water and will join other businesses such as Chemonics International in locating to the expanding 42-acre Yards development
The DC metro area ranked third in the country, only behind the Bay Area and Seattle, in tech talent by CBRE. The Scoring Tech Talent report recognized the region’s high number of tech graduates and gender diversity in its tech sector..
Workforce & Economy
The District makes significant investments in economic growth & recovery
The District continues to make significant investments in economic growth and recovery as highlighted by the FY2022 Fair Shot Budget. Highlights include $400M for affordable housing, new financial business incentives, and placemaking and recovery projects.
More to Know:
- Mobile device charging company BatteryXchange has expanded to DC with a local office and a pilot battery kiosk.
- The U.S. Department of the Interior will move the Bureau of Land Management’s headquarters back to the Districtfrom Colorado.
- Venture capital investments in the DC area reached an all-time high in 2021’s second quarter, with $1.27 billion invested across the region and $459 million invested in District-based companies.
- The District’s funding surge continues, with millions raised by Class Technologies Inc., Arcadia, MPower Financing; Sayari Labs Inc., DNSFilter, Confidential, Otolith Labs, and Localized Inc.
- District-based firms are prioritizing inclusive investment. Apis & Heritage Capital Partners raised $30 million to support workers of color in becoming business owners through an “employee-led buyout” model and Zeal Capital Partners closed a $62 million fund focused on inclusive investments in the fintech and future of work sectors.
Real Estate & Housing
Howard University announces plans for National Research Center for Health Disparities
Howard University announced that construction of the new National Research Center for Health Disparities will begin in 2023. The project will include a laboratory, office space, and rental apartments and will be located next to the university’s college of medicine.
To follow development trends across the District, explore WDCEP’s interactive map showcasing 20 Years of Growth in the District of Columbia.
More to Know:
- Demand in the DC area housing market has accelerated, with increasing apartment absorption and a declining vacancy rate signaling a strong recovery.
- The Securities and Exchange Commission secured a lease for a new 1.2 million SF headquarters in the NoMa neighborhood, with plans to break ground on the site in 2022.
- The General Services Administration (GSA) submitted an $11 billion budget, with proposed funding for the Department of Homeland Security consolidation at the St. Elizabeths West campus as well as renovations for the GSA, the Ronald Reagan Building and International Trade Center, and the William Jefferson Clinton building.
Transportation & Infrastructure
New Frederick Douglass Memorial Bridge opened in September
The $480 million bridge that connects communities across the Anacostia River was completed ahead of schedule and opened to vehicular and pedestrian traffic following an opening ceremony hosted in early September.
More to Know:
- Mayor Bowser and the District of Transportation continue to make critical investments in infrastructure, announcing plans to build three bridges.
- Franklin Park reopened in downtown DC after a $21 million renovation, which included the expansion of the fountain plaza and the addition of a children’s play area.
- Metro Board of Directors approved plans to transition to a fully electric bus fleet by 2045 in a move to limit emissions and further sustainability.
DC in the News
- The DC metro region ranked third in the U.S. on the 2020 Sharecare Community Well-Being Index, which takes into account various factors of community and individual well-being.
- DC-based Social Driver was named the top-ranking LGBTQ+ owned business in the U.S. by Clutch.
- Children’s National Hospital earned a place on U.S. News and World Report’s Best Children’s Hospitals Honor Roll.
- Several universities in the District were ranked within the top 100 universities on the 2022 U.S. News and World Report’s Best National Universities list: Georgetown University (#23), George Washington University (#63), American University (#79), and Howard University (#83).