DC Market Update – Spring 2023
Downtown DC Draws Major Management Consulting Firm Expansions
By 2050, the Washington, DC region is projected to gain a million new jobs, 25% of which are in the professional and business services sector. DC’s proximity to the federal government and talented workforce makes it a top choice for government contracting, policy, and social science research. The District’s management consulting industry is one of the largest in the United States. In recent years, several major firms including PWC and BCG have expanded in Downtown DC, growing the presence of global consulting companies in the city.
Read more about consultants moving into the District, including comments by Justin Dean, Managing Director & Senior Partner of BCG, about their relocation from Maryland to Washington, DC.
#1 Highest concentration of Management Consulting & Think Tanks industry employment in the U.S – nearly four times the national average
Source: JobsEQ (Q3 2022)
Developer Redbrick LMD has plans to construct a workforce development academy, the National Center for Cyber Leadership in DC’s Anacostia neighborhood as part of the firm’s Bridge District mixed-use project. The National Center for Cyber Leadership will be part of their 2.6 million square foot project located in close proximity to Joint Base Anacostia-Bolling, home of the Defense Intelligence Agency and the White House Communications Agency, and Saint Elizabeths’ West Campus, home to the U.S. Department of Homeland Security.
This Quarter’s Highlights
Workforce & Economy
DC’s Tech Scene Booms with Major Acquisitions and VC Funding
DC’s tech scene has seen significant growth and investment in recent years. Two notable examples are Xylem and FiscalNote, two DC-based companies that have recently made significant acquisitions. Xylem, a water technology company, has acquired Evoqua, a water treatment solutions provider, for $7.5 billion. This acquisition will position the combined company as a leader in developing solutions to address global water challenges, with customers in various industries. FiscalNote has acquired Dragonfly Eye, a UK-based security intelligence software company for large banks, for $32.8 million. FiscalNote produces online dashboards with legal and regulatory data for government, nonprofit, and corporate clients, and is an anchor of DC’s tech ecosystem. Beyond acquisitions, 2022 was also one of the highest-investing years on record for VC funding into the DC region, with area companies raising more than $4 billion (source: Ernst & Young).
Real Estate & Housing
USC, Johns Hopkins, and Purdue Latest Universities to Open Satellite Campuses in DC
Johns Hopkins University’s School of Advanced International Studies
Washington, DC is a national hub for higher education, with many universities establishing satellite campuses in the city. Campuses of top universities, such as NYU, Stanford University, Arizona State University, and Texas A&M University provide students with an exceptional opportunity to experience the nation’s capital while pursuing their academic goals. USC, Johns Hopkins, and Purdue are the most recent universities opening satellite campuses downtown. USC recently announced its strategic acquisition of a 60,000-square-foot building in DC that will serve as the university’s new East Coast campus, focusing on fields of study like cybersecurity, computer science, journalism, public policy, political science, and health sciences. Johns Hopkins University’s 420,000-square-foot School of Advanced International Studies campus is located near the Capitol and White House at 555 Pennsylvania Avenue NW. The $300 million development will house programs in international relations, economics, regional studies, and languages and is expected to open in fall 2023. Purdue University also announced a location in One Franklin Square, 1301 K Street, NW. The location will be focused on semiconductor and microelectronics programs as well as tech diplomacy, policy research, Federal relations, and alumni outreach.
Transportation & Infrastructure
Washington, DC’s Metro and National Airport Experience Record-Breaking Passenger Numbers
Record-breaking passenger numbers have been reported for both the Metrorail and Reagan National Airport in Washington, DC, both promising signs of DC’s dedication to improving transportation to and around the city. During this year’s Cherry Blossom Festival, the Metro saw its busiest weekend in eight years. In other recent news, Metro also announced expanded services on four out of its six rail lines in first quarter of the year, while a March survey conducted by the Washington Post showed that three out of four riders rated DC’s metro system as good or excellent. For air travel, Reagan National Airport surpassed pre-pandemic levels at just under 24 million passengers in 2022, representing year-over-year increase of 71%.
DC in the News
Howard University Obtains HBCU Record For Research Funding and Outlines Major Construction Plans
Howard University has recently attained $785 million in funding for new construction and capital improvements. Most of the construction funds will be allocated towards three new academic centers expected to be completed by 2026, including a Health Science complex, a center for arts and communication, and a STEM center. In addition, Howard University will renovate the historic Miner School, which will house a school of education and a chartered middle school. The university has also secured $122 million in research funding, a record for any historically black college and university. The Department of Defense has provided funding for a military research center. Additionally, in partnership with Georgetown University, Howard University has received a Mellon Foundation grant to establish a hub for the medical humanities, focused on challenging systemic racism in medicine and improving healthcare access.