DC Market Update – Summer 2022
Fueled by top-tier talent and strategic public-private investments, health & life sciences sector gains momentum in the District
The DC metro area is a national force in the life sciences sector, supported by its unmatched access to federal institutions, a network of leading research universities, and a robust talent pipeline. Located at the center of the region, the District provides access to industry leaders and is advancing its own life sciences sector through new strategic investments.
Read more about health & life sciences in the District and reach out to Audrey Polk or Prayas Neupane for information on opportunities in the DC market and Vitality Fund support for life sciences companies
#2 Market for Life Sciences Research Talent (DC/Baltimore region – CBRE, 2022)
The DC metro and Baltimore region ranked second in the country, only behind the Boston/Cambridge area, for life sciences research talent. To identify the strongest sector markets, the ranking factored in both occupational and educational data to determine the mass and density of available talent.
The redevelopment of the District’s historic, 25-acre McMillan Sand Filtration site will include the McMillan Center for Health and Research, a new hub for medical innovation strategically located in the heart of DC. The center will offer 950,000 SF of healthcare and medical research space in three, state-of-the-art health and wellness towers with a 1,750-space parking garage, making it a perfect location for companies in need of new wet lab, clinical, or office space. Tenants in this new medical district will benefit from the site’s proximity to Howard, Catholic, and Trinity Washington University as well as three hospitals – Children’s National, the Washington DC VA Medical Center, and MedStar Washington Hospital Center. The mixed-use development will also include more than 600 residential units, 85,000 SF of grocery-anchored retail, an 8-acre park, and a new community center.
This Quarter’s Highlights
Workforce & Economy
JPMorgan and Google make significant investments in downtown DC
Two major, Fortune 100 companies announced expansions within the District, highlighting renewed activity in the downtown DC office market. In May, JPMorgan Chase opened its new regional HQ at the Bowen Building (875 15th St. NW) for an expected 500 employees, occupying more than twice the size of space it had originally planned for in 2018. Further expressing its commitment to growth in the DC region, the bank is planning to open 40 new area branches by 2025. Google’s parent company Alphabet is also expanding its footprint in the District with a new 130K sublease at 655 New York Ave. NW. The company could employ 400 engineers at the new location, drawing on the District’s expansive tech talent pool.
Real Estate & Housing
The District will allocate historic levels of funding to affordable housing in the new fiscal year
The fiscal year 2023 budget includes a historic $445 million allocation to the District’s Housing Production Trust Fund (HPTF), a critical instrument for the city’s goal to create 36,000 new housing units, with 12,000 being affordable, by 2025. DC is a national leader in housing policy. It was the first jurisdiction in the country to set these affordable housing goals by neighborhood and in 2015, the District’s $100 million HPTF investment was more than triple the amount of the next largest city fund. Since then, $1.4 billion has been invested into the HPTF, which will continue to support new housing production at a time of increased residential development throughout the District, which has more than 73,000 units in the pipeline as of December 2021.
Transportation & Infrastructure
New District initiative will expand internet access and strengthen the District’s broadband network
DC’s new Community Internet Program will offer internet service providers free access to District-owned building rooftops in exchange for a commitment to providing free or low-cost high-speed internet to households eligible for the federal Affordable Connectivity Program. The program is only one part of the District’s wider strategy to increase broadband accessibility, which includes expanding internet access at temporary, public, and shelter housing sites, opening a new State Broadband and Digital Equity Office, and maintaining over 800 public Wi-Fi hot spots.
DC in the News
As the world’s first LEED Platinum city, DC continues to lead the way on sustainability
The District remains #1 in the country on the Trust for Public Land’s annual ParkScore ranking, with 98% of residents living within a 10-minute walk of a park. The city’s wide variety of parks and recreational activities are a key draw for workers, residents, and visitors. The metro area was also recognized by the EPA as second in the country for the most ENERGY STAR certified buildings, demonstrating the region’s commitment to sustainability and energy efficiency.