DC Market Update – Winter 2023
Virtru expansion highlights strength of the cybersecurity sector in Washington, DC
Virtru, a tech company specializing in data encryption and digital privacy, has signed a lease for a 17,000 SF headquarters in downtown DC. The expansion highlights the competitive advantages of DC’s tech and cybersecurity ecosystem and was supported by the Vitality Fund, an incentive for high-growth companies looking to relocate, expand, or remain in the District.
Read more about Virtru and cybersecurity in DC and connect with Audrey Polk, VP of Corporate Attraction, for information on applying to the Vitality Fund and other resources for tech companies.
#1 U.S. Metro for Cybersecurity Workforce (Cyberseek, 2022)
The DC metro area was found to have the largest supply of cybersecurity talent in a comparative analysis of MSAs with an estimated 112,347 workers employed in cybersecurity in 2022 and 37,237 CompTIA Security+ certification holders.
Congrats to Cresa brokers Mindy W. Saffer and Josh Freedenberg for closing a deal bringing nonprofits Distilled Spirits Council of the United States and Responsibility.org to a new 11,175 SF office at 101 Constitution Avenue, NW. The organizations represent 56 employees and will plan to move into the new space in 2023. Responsibility.org will be moving from National Landing in Arlington, VA, joining other nonprofits like National 4-H Council, Healthcare Distribution Alliance, and the American Center for Physics who have announced DC office relocations from surrounding markets in Virginia and Maryland.
This Quarter’s Highlights
Workforce & Economy
Private sector continues to make significant investments into DC region’s talent pipeline
Several companies are supporting workforce development initiatives that will strengthen the talent pipeline into District companies. Amazon recently opened a new Amazon Web Services Skills Center in Arlington, VA that will provide free cloud computing education through classroom training and employment resources. Raytheon Technologies, which is relocating its HQ to Arlington, recently partnered with the nonprofit NAF to open new technology labs at four DC high schools. The labs provide an opportunity for Raytheon to directly engage in workforce development and build a diverse STEM pipeline. In addition to private sector investments, new federal spending on local higher education institutions will include funding to increase opportunities in fields such as health care, education, and technology.
Real Estate & Housing
DC leads in office-to-residential conversions
RiverPoint, an office-to-residential conversion project in the Capitol Riverfront neighborhood, transformed the former U.S. Coast Guard HQ into a 481-unit apartment building with 70,000 SF of retail space in 2020.
A recent RentCafe analysis found that DC had the highest number of converted apartments among cities with 1,565 units from 2020 to 2021, representing 5.6% of the country’s total converted units in that period. DC also led in the number of converted apartments from repurposed office buildings, with 1,147 units created from office conversions. To incentivize further residential development in DC’s downtown area, the District government has announced an annual Housing in Downtown (HID) tax abatement program for office-to-residential conversions. This will support the city’s goal to increase the downtown population by 15,000 residents in the next five years from the current residential base of 25,000 by creating more mixed-use neighborhoods.
Transportation & Infrastructure
Metrorail expansion to Dulles International Airport (IAD) strengthens regional connectivity
Image Courtesy WMATA
In November, the Silver Line Extension of DC’s Metrorail system opened to the public, connecting the District to a new stop at Washington Dulles International Airport (IAD) and five additional new stations in Northern Virginia. Residents and visitors can now access the IAD, Reagan National (DCA), and Baltimore/Washington International (BWI) airports through local transit options, improving mobility across the region and enhancing connectivity to domestic and international destinations. In other news at IAD, United Airlines plans to bring 1,100 more jobs to the airport in 2023 after announcing a historic purchase of new commercial aircraft. The airline also recently launched a direct flight to Cape Town and will be adding a direct option to Berlin in 2023.
DC in the News
Prominent nonprofits are expanding offices in downtown DC
With proximity to the federal government and a focus on social impact, the District is a leading hub for nonprofits with several organizations recently announcing expansions in the downtown area. Healthcare Distribution Alliance is relocating from Arlington, VA to a 13,000 SF office at 1275 Pennsylvania Avenue, NW to be closer to federal lawmakers. Similarly, National 4-H Council, which focuses on youth development, will relocate from Chevy Chase, MD to a new 15,000 SF DC office for better access to the federal government. World Food Program USA, a nonprofit that supports the UN on issues of world hunger, will increase its footprint by 54% by relocating its DC office to 1750 H St. NW.
For more detailed insights on the District’s nonprofits, explore our interactive map.