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Achieving a Mixed-Use Downtown August 7, 2024
Last month, we marked an important moment for Downtown DC – Mayor Bowser cut the ribbon on the Elle apartments – the first office-to-residential conversion in Downtown DC. The Elle is a 163-unit residential property with a rooftop pool, a fitness center and yoga studio, a dog spa, a community room, and other amenities. The innovative project transformed the former Vanguard office building and longtime home of the Peace Corps into a new community of residents who will bring new 24/7 vibrancy to the Golden Triangle neighborhood.
In addition to the Elle, we have 11 other office-to-housing conversion projects in the pipeline that will deliver more than 2,300 new homes Downtown. And that’s just a start to achieving the DC Comeback Plan’s goal of adding 15,000 new residents Downtown.
The importance of investing in our Downtown cannot be understated. Downtown hosts nearly 40% of the businesses and 40% of the jobs in the District of Columbia, as well as generates over 35% of DC’s property tax revenues, which has been invested over the years to support economic development throughout the city. Maintaining a vibrant Downtown ensures we will continue to attract and retain businesses in DC, deliver an exciting experience for visitors, and ensure investment in neighborhoods throughout the city!
With office occupancy at around 20% currently, we have an opportunity to reposition Downtown to significantly include residents and convert the current 90% to 10% commercial to residential mix to something closer to 60% or 70% commercial use, with the balance of space including residential, resident-serving retail, green space, and community services and uses!
The Downtown Action Plan synthesizes the priorities and investments proposed by more than 100 stakeholders in Downtown to ensure continued vibrancy in Downtown DC.
And DMPED launched two important programs this year to incentivize the conversion from underutilized or vacant offices to active and occupied uses:
(1) Housing in Downtown
- The District’s Housing in Downtown program is designed to catalyze new residential development through commercial-to-residential conversion via a 20-year tax abatement.
- DMPED estimates that this initial $41 million investment can help deliver 6.7 million square feet of new residential use, or 8,400 new housing units.
(2) Office to Anything
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The District’s Central Washington Activation Program (or “Office to Anything”) supports the repositioning of office space into new commercial, entertainment, or retail spaces by offering a 15-year temporary property tax freeze.
- DMPED estimates that this $8 million investment will help convert 4 to 6 million square feet of office space into new uses that will create new sources of revenue for the District.
Ultimately, we envision Downtown DC to be a dynamic neighborhood, where anyone can work, live, visit and thrive. Our work includes attracting, retaining and expanding businesses Downtown and delivering extraordinary cultural and entertainment experiences that keep visitors coming time and time again back to DC.
This will not happen overnight. But Mayor Bowser and DMPED are leading with a plan and set of investments that will help get us there.
Nina Albert
Deputy Mayor, Planning and Economic Development
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Mayor Bowser announced that DC has surpassed our “36,000 homes by 2025” goal, a goal she set in 2019 to increase DC’s housing supply and blunt the increase in housing costs. By adding more housing, the District has maintained lower rent increases compared to the national average and leads the region in new housing production. While average rents nationally have increased by 3.4% since 2019, average rents in DC have increased at half the national average (1.5%) during the same period. In addition, the jurisdictions surrounding the District experienced double the average annual rent growth as compared to DC’s average between 2019 and 2024.
We know that we must sustain and maintain these investments so that we can continue building on our progress. You can track the District’s housing progress by visiting open.dc.gov/36000by2025.
Local Business Spotlight: Shanklin Hall
August is Black Business Month! This month and every month, we encourage you to get out and support Black businesses all throughout the city.
This month, we’re spotlighting Shanklin Hall, a Black business in Adams Morgan founded by four native Washingtonians. Part restaurant, part social club, Shanklin Hall seeks to curate a space that centers and honors the Black experience in Washington, DC. The space is soulful and eclectic, decorated in beautiful décor that creates a vibe like no other. DMPED is proud to have supported Shanklin Hall with a grant from Mayor Bowser’s Small and Medium Business Growth Fund, which provides funding for local businesses to make capital Improvements, purchase critical equipment, and implement new and innovative technology.
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Promoting DC as a World-Class Choice for Tech, Innovation, and International Investment
Mayor Bowser, DMPED, and the Washington, DC Economic Partnership promoted DC at the SelectUSA Investment Summit
When entrepreneurs think about where to locate and launch their businesses, not only do they think about where they want to get their start, but where they can grow and thrive. To help make DC the #1 choice for international businesses coming to the United States, the District launched “Washington, DC Global Soft Landing,” a comprehensive effort to attract and support international companies and entrepreneurs with access to discounted, flexible office space and streamlined visa solutions.
DC is innovation hub and has been recognized as the #1 State for Tech Careers, the #1 Global Cybersecurity Talent Market, and the #1 Most Innovative State. Washington DC Global Soft Landing is our opportunity to leverage an incredible network of institutions and partners to build off of our presence as the nation’s capital and be the top choice for where businesses enter the U.S. and give them a head start to prosper in DC.
Events during DC Small Business Week 2024 are free to the public but have limited space. Attendees are encouraged to register for virtual and in-person experiences.
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