DC Market Update – Spring 2022
New $7.5M Vitality Fund now available to support business attraction and expansion in DC
The new $7.5 million Vitality Fund provides discretionary grant funding to assist businesses in high growth sectors to relocate, expand, or remain in the District’s central business area. The fund is currently active and seeking applications.
Learn more about the Vitality Fund and reach out to Prayas Neupane, Director, Business Attraction & Expansion, for further information.
#1 Most Innovative State (WalletHub, 2022)
The District ranked first in a recent analysis of the country’s most innovative states, while Maryland and Virginia ranked 4th and 6th respectively. States were evaluated considering factors such as STEM graduates and professionals, share of technology companies, R&D spending, venture capital funding, entrepreneurial activity, and internet access and speed.
Deal Spotlight
Congratulations to CBRE brokers Michael Shipley, Emily Alcorn, and Angus Scott for closing a deal to expand social media company TikTok’s DC office in the Union Market neighborhood. In April, TikTok agreed to lease an additional floor at Signal House, Carr Properties’ new 236,000 SF trophy office building, for a total of 73,900 SF. This expansion leaves only 72,000 SF of office space available at Signal House.
This Quarter’s Highlights
Workforce & Economy
DC metro area companies raised $4.9 billion in venture capital funding in 2021, more than double the 2020 total
The metro area saw a significant increase in venture capital funding over the course of 2021. The nearly $5 billion total broke a regional record, demonstrating the strength of DC’s funding ecosystem and commitment to becoming a hub for inclusive innovation. Continuing the trend into 2022, several DC-based companies secured funding in this year’s first quarter including: cybersecurity company Virtru, foodtech startup Wellfound Foods, logistics company Optoro Inc., retail and e-commerce company FIT MKT, AI startup FutureAI, fintech and supply chain company Sayari Labs, cryptocurrency company Eaglebrook Advisors, Web3 company Fonbnk, edtech company Legends of Learning, supply chain software company Ion Channel, and telehealth company PharmD.
Real Estate & Housing
The DC metro area ranks seventh in the country for most new construction over the past decade
A recent analysis comparing construction trends from 2012 to 2021 found that the region was among the top ten metro areas with the most active real estate markets and ranked 4th nationally in new office construction with 39.1 million SF of office space.
In the District alone, 110.5 million SF representing more than $43 billion of investment delivered across the office, residential, retail, hospitality, and quality of life sectors from 2012 to 2021, according to WDCEP data. Additionally, projects totaling nearly 15 million SF have broken ground from March 2020 to December 2021, pointing to the resilience of the city’s development and construction sectors during the pandemic. Several significant mixed-use projects are currently under construction in the District including The Wharf’s Phase 2, City Ridge, and The Parks at Walter Reed.
Transportation & Infrastructure
Three major airports continue to connect DC to global markets as airlines launch new international travel options
Baltimore/Washington International (BWI) Airport, one of three airports serving Washington DC, recently announced several international service updates that will further connect the region to Africa and Europe. In 2021, Air Senegal launched service at BWI to provide weekly roundtrip flights to Dakar. After being suspended due to the pandemic, British Airways resumed direct flights to London Heathrow from the airport as well. This year, BWI also announced that two new airlines, PLAY and Icelandair, would begin service to Reykjavik in the coming months.
DC in the News
New research shows DC leading in gender pay equity
In a recent analysis of pay among young men and women in U.S. metros, DC was found to be among only 22 out of 250 metro areas where women under 30 earn the same amount or more than men in this age group. While the national average still reflects a gender wage gap, young women’s earnings in DC were 102% of those of young men for full-time, year-round workers.