March 15, 2023 (Washington, DC) – The Washington DC Economic Partnership (WDCEP) has released the latest edition of their signature publication, The Development Report. The Development Report offers an overview of the local and regional economy and includes details on employment, industry trends, and a detailed presentation of development, including leasing activity in the District. The WDCEP has been tracking development and construction in DC since 2001, overall and by sector.
The Development Report reveals the shifting landscape of the makeup of the city’s development and construction projects. While new private-sector office projects have slowed, there are nine office conversion developments currently underway along with nearly 15,900 residential units under construction.
“As DC continues to pivot to the realities of a post-pandemic landscape, we are encouraged by the public and private sectors‘ continued investment in our neighborhoods, including downtown,” said Derek Ford, President & CEO, WDCEP.
WDCEP tracks major developments throughout the year and performs an annual “development census” in the month of December. This involves soliciting contributions from more than 80 developers, architects, contractors, and economic development organizations to provide updates to more than 200 projects.
According to Chad Shuskey, COO, WDCEP “While this year’s report reveals a softening real estate market compared to previous years, there is significant momentum in converting outdated office buildings into other uses and new residential product throughout the city as DC continues to experience year over year population gains.”
The DC Development Report is a summary of the major development and construction projects in the District of Columbia and produced in collaboration with Delta Associates. The Development Report is used by investors, businesses, and local community-based organizations to track investment in the District. While our database of projects is constantly being updated, this publication’s data reflect project status, design, and information as of December 2023.
Highlights from this year’s Report:
- Groundbreakings in the District totaled 6.1 M SF in 2023
- Major project starts in 2023 included the redevelopment of the former Mazza Gallerie shopping center, 600 5th Street (former WMATA headquarters), Wardman Park (former Wardman Park Hotel), Barnaby & 7th, and The Accolade (office to residential conversion).
- Job growth in the Washington, DC metro area remained positive in 2023, with 38,100 net additions over the year. The District added 10,200 jobs on a net basis in 2023.
- There are nine office conversion projects under construction representing an estimated 1,370 residential units and 248 hotel rooms. These projects are converting an estimated 860,000 SF of office space.[1]
- At the end of 2023, there were 751,000 SF of retail space under construction, with over half scheduled to deliver in 2024.
- 5,320 residential units delivered in 2023, a 25% decrease from 2022. In 2024, more than 9,100 units are scheduled to deliver, a 72% increase from 2023.
- The 271-room Royal Sonesta Washington, DC Capitol Hill was the only new hotel project to deliver in 2023. In 2024, 970 new hotel rooms are expected to come online.[2]
For more information on development and investment in the city download the 2023-2024 DC Development Report.
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Background: A 501(c)(3) organization, the Washington, DC Economic Partnership promotes business opportunities throughout the District and contributes to business retention and attraction activities. WDCEP is the first point of access for real estate and corporate executives seeking market and demographic information, information about the city and incentives, and real estate investment. WDCEP publishes several reports on the market including the DC Development Report and the Neighborhood Profiles. For more information visit www.wdcep.com
The DC Development Report is a summary of the major development and construction projects in the District of Columbia. WDCEP tracks major developments throughout the year and performs an annual “development census” in the month of December. This involves soliciting contributions from more than 80 developers, architects, contractors, and economic development organizations to provide updates to more than 200 projects. While our database of projects is constantly being updated, for the purposes of this publication all data reflect project status, design, and information as of December 2023. Although every attempt was made to ensure the quality of the information contained in this document, WDCEP and Delta Associates make no warranty or guarantee as to its accuracy, completeness, or usefulness for any given purpose.
[1] Includes new construction components of conversion projects.
[2] Includes renovation projects
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