State of Georgetown 2014

8/12/2019 State of Georgetown 2014

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THE STATE OFGEORGETOWN

2014


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2 THE STATE OF GEORGETOWN 2014 REPORT

This second annual report is a product of the staff of

the Georgetown Business Improvement District (BID);

the judgments herein do not necessarily reflect the

views of the BIDs Board of Directors or the BID

members they represent.

Data for The State of Georgetown 2014 covers the

period from January 2013 to December 2013, and

some preliminary figures for Q1 2014. It is intended to

support informed decisions by many stakeholders,

including BID members, brokers, retailers, restaurateurs,

cultural institutions, and DC government officials

and staff. The report is a compilation of relevant,

comparable statistics about core features of the

Georgetown BID economy: people, office activity, retail

activity, hospitality and tourism, and transportation.

about this reportcontents

2 The State of Georgetown

6 People

7 Employment

10 Residential Population

16 Commercial Buildings

17 Building Improvements

20 Unique Spaces

21 Canal and Waterfront District

24 Retail Market

32 Office Market

38 Hospitality and Visitors

39 Hotels

43 Visitor Amenities

44 Transportation

54 Notes

Copyright 2014 by the Georgetown Business Improvement District


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The Georgetown BID Area

Source: Georgetown BID and data.octo.dc.gov

ROCKCREEK

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PST

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WISCONSINAVE

GEORGETOWNWATERFRONTPARK

C&O CANAL

KST

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THE STATE OF GEORGETOWN 2014 REPORT 1


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THE STATE OF

GEORGETOWN


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Reviewing calendar year 2013, Georgetowns success as a vibrant, urban, and economically

significant part of the District of Columbia is evident across a variety of measures and sectors:

Office sector performance was strong, and the vacancy rate decreased to 9.1 percent, thelowest figure in Georgetown since 2006 and 1.6 percentage points lower than the city-wide

average at year-end.

Retailer interest remained extremely high, evidenced by a net gain of 7 new stores, a total

collection of over 330 retailers, few vacant spaces, and rising rents.

The restaurant industry showed strength, posting a net gain of 9 full service restaurants to

a total collection of over 120 food service establishments.

Georgetown hotel revenues grew to $65 million, an increase of 6 percent from 2012.

The multi-family housing sector showed signs of heating up, with over 100 units of new-construction

condos and apartments breaking ground or in the pipeline.

We expect these trends to continue in 2014, but are cautious about long term forecasts given Georgetowns transportation

challenges and changing dynamics in downtown and elsewhere in the region.

Georgetown remains an iconic neighborhood. The number of

retailers, restaurants, and entertainment venues is increasing.

Offices are leasing more space and vacancy rates have fallen for

the second year in a row. New mixed-use, multi-family residential

buildings are rising south of M Street. Elected officials, neighbors,

and businesses are working to implement a 15 year plan for the future of the

commercial district, bringing a Georgetown Metro station, streetcar, aerial gondola,

and restored C&O Canal a step closer to reality. And businesses in the BID area

support over 13,000 jobs in just 0.25 square miles. For these reasons, the state

of the Georgetown economy is strong.

PhotoCredit:SamKittnerforGeorgetownBID


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TRANSPORTATIONAs noted in the 2013 State of Georgetown, accessibility

remains a priority for Georgetown. Increasing access to

Georgetown has the potential to unlock many upsides: more

convenient commutes for workers and residents, office rental

rates more comparable to Downtown properties, and more

foot traffic for retailers. The Georgetown community under-

stands these imperatives, identifying 43 transportation

related action items in the Georgetown 2028 Plan.*

Interventions that will take place over the next fifteen years

include organized advocacy for a Georgetown Metro station

and a Georgetown Streetcar connection, the transformation

of K Street into a multi-modal gateway, establishing

Georgetown as a bicycle-friendly destination, and better

roadway and parking management. The State of Georgetown

will continue to report relevant vehicular and pedestrian

metrics.

POPULATION PRESSURELast years report identified the importance of the 25 to 34

year old age cohort to Georgetowns retail and transportation

landscape. Young professionals continued to drive population

growth in 2013, with DC adding more than 1,000 residents

per month. In addition to the retail opportunities populationgrowth affords, a growing population also places demands on

everything from city services to housing. Continued short-

ages in the housing (especially condo) supply are driving

both policy makers and developers to explore all options

for new residential space. This trend is apparent even in

Georgetown, where seven multi-family residential projects

were delivered, under construction, or announced in 2013.

Developers in Georgetown forecast multi-family residential

property values of $800 to $1,200 per square foot (SF). Thisvaluation is often higher than commercial property values,

creating a value gap that can make converting properties to

residential use an attractive possibility. Studying and manag-

ing this dynamic is an essential undertaking for residential

and commercial stakeholders in the coming years.


* Read the full plan at

www.georgetowndc.com/georgetown2028

Rendering: Georgetown BID/cox graae + spack Photo Credit: Georgetown BID


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MANAGING FULL BUILD OUTThe Washington region is buzzing with new construction

and major renovations of commercial buildings. In 2013,

4.5 million SF of office space (about 1.6 times the total office

space of Georgetown) was delivered across the metro area.1

An ever increasing share of this property is composed ofClass A and LEED certified spaces. The fact that Georgetown

continues to attract office tenants speaks to its many

amenities: proximity to both downtown DC and the Virginia

and Maryland suburbs, a dense live-work-play environment,

unique office buildings, and a vibrant professional community.

Still, the competition is increasing and ensuring that

Georgetowns commercial spaces remain attractive will be

a key priority of the BID.

Similarly, between 2001 and 2013 developers delivered

5.4 million SF of retail space in DC, nearly 2.5 times the total

retail space in Georgetown.2More than 7 million additional

SF are in the pipeline. Retailers and consumers will have

more and more choice on where to locate and shop.

As Georgetown approaches the constraints of full build-out,

it will become essential to find innovative ways to balance a

variety of space and programming needs: the growing shareof office tenants that value efficient, high quality space; an

increasingly youthful workforce and residential population

that enjoys dense, urban amenities, and; retailers and

restaurateurs seeking new opportunities in Georgetown.

Experiments to find the highest and best use of spaces in

Georgetowns Canal & Waterfront District will become

increasingly important. Continuing to retain businesses

that are attracted to Georgetowns many small and unique

buildings is, too. And finding ways to induce investment

into aging properties is likely to be a determining factor in

Georgetowns commercial performance in both the short

and medium terms.

UNLOCKING THE POTENTIAL OFPUBLIC SPACEBy 2020, DC is projected to have in excess of 675,000

residentsan 18 percent increase from 2000.3The city is

becoming more densely populated and new housing is taking

the form of condos and apartments to fit the lifestyles of

young professional workers and empty-nesters alike. DCs

tourism numbers are increasing as well, with 18.5 million

visitors in 2012, up three million from a decade earlier.4

Smaller, denser living spaces and more tourism highlight the

need for public space and parks to serve as a common

recreation room for a diverse set of people. Evidence of this

increasing demand is seen, for example, in the DC portion of

the C&O Canal National Historical Park: between 2007 and

2013, recreational visits doubled from just over 700,000 to

more than 1.4 million visitors annually.5

Though Georgetown is home to a wealth of parks and historic

sites, budget shortfalls have limited the National Park

Services ability to leverage the full potential of Georgetowns

most esteemed public spaces. The FY2012 deferred mainte-

nance backlogs for the C&O Canal Park and Rock Creek Park

(both of which crisscross Georgetown) totaled $117 million

and $37 million. In contrast, the entire, nation-wide allocation

for the National Park Services deferred maintenance activities

was $77 million.6

Consequently, important recreational resources like the C&O

Canal towpath are deteriorating. Resources to provide high

quality historical interpretation are also diminishing: there has

been no functioning canal boat in over two years, and visitor

center attendance has dropped an astounding 93 percent

since 2002.7Compounding the stress of an underfunded

National Park Service is general federal budget uncertainty.

During the 2013 federal government shutdown, for example,

the Washington Habour dock was closed to commercial

water taxis and tourist launches, and trash went uncollected

in the Waterfront Park. The vitality of the commercial district

will depend heavily on how the challenges affecting

Georgetowns national parks are dealt with.


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PEOPLE


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EMPLOYMENTRegional employment grew between 2010 and 2013, though

the pace of growth slowed in 2013 due to sequestration and

federal budget uncertainty: between 2012 and 2013, DC

netted only 1,500 jobs across all sectors. Job growth in the

hospitality/food-service (14,000 jobs added) and leisure(2,000 jobs added) sectors was exceptionally strong across

DC and the region, emphasizing the growing competitive

pressures facing Georgetown as a visitor destination. While

professional and business service jobs decreased across the

region, DC continued to create jobs in this sector, helping

buoy demand for office space in the city despite a shrinking

federal government footprint.8

Georgetown remains a vibrant, dense commercial district:

Georgetown businesses provide an estimated 13,089 jobs in

2013 within the BID area, which encompasses approximately

0.25 square miles.9Georgetown University and the

Georgetown University Hospital, situated adjacent to the

boundary of the BID, support in excess of 10,000 additional

jobs on 0.16 square miles of campus. 10Between these two

areas, employment data suggests a density of about 60,000

jobs per square milesimilar to the densities observed in

areas near Dupont Circle, Shaw, and the Rosslyn-Ballston

corridor.

DENSITY OF JOBS IN WASHINGTON, DC

Source: U.S. Census Bureau (2013) OnTheMap Application, Longitudinal-Employer

BETHESDA

CHEVY CHASE

SILVER SPRING

Washington, DC

ARLINGTON

BAILEYS CROSSROADS

57,975

I

I

7,97631,887

31,88871,741

I

I

71,742127,535

127,536199,272

GEORGETOWN Jobs/ Sq. Mile

JOBS IN GEORGETOWN

DC Employment (Thousands) 2010 2011 2012 2013

DC Total 712 726 732 745

of which

Downtown BID 179 182 182

Georgetown (Total) 29 28 23 28

Georgetown BID 11 11 12 13

Source: Bureau of Labor Statistics (2014), U.S. Census OnTheMap Application (2014),

DC Department of Emploment Services, Downtown BID (2014)


13,000JOBS ARE SUPPORTED

BY BID BUSINESSES


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About 26 percent (3,400) of jobs

within the BID area fall within the

professional, scientific, and technical

services sectorsupporting the

conventional wisdom that much of

Georgetowns office market is com-

prised of architectural, design, and

legal services. The highly seasonal

accommodations and food services

sector likely fluctuates between 25 and

30 percent of total jobs, with 4,133 jobs

in Q3 2013the late summer high

season for this sector. Georgetowns

vibrant retail sector accounts for about

15 percent (1,900 jobs). The balance of

jobs is distributed across a wide variety

of sectors.11

Source: Bureau of Labor Statistics (2014)

NET CHANGE IN PAYROLL JOBS, 2012-2013, BY SECTOR

LEISURE AND HOSPITALITY

FINANCIAL ACTIVITIES

STATE GOVERNMENT & PUBLIC TRANSPORTATION

RETAIL TRADE

TRANSPORTATION, WAREHOUSING & UTILITIES

EDUCATIONAL AND HEALTH SERVICES

OTHER SERVICES

PROFESSIONAL AND BUSINESS SERVICES

GOODS PRODUCING

WHOLESALE TRADE

INFORMATION

FEDERAL GOVERNMENT

-10.0 0.0THOUSANDS OF JOBS

10.0 20.0

DC

REST OF REGION

8 THE STATE OF GEORGE TOWN 2014 REPORT

PhotoCredit:SamKittn

erforGeorgetownBID


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JOBS IN THE GEORGETOWN BID, BY SECTOR

Industry 2012 Q3 2013 Q3 Year-on-Year change

Accommodation and Food Services 3,722 4,133 11%

Professional, Scientific, and Technical Services 3,099 3,391 9%

Retail Trade 1,463 1,959 34%

Other Services (Except Government) 1,585 1,539 -3%

Administrative and Support and Waste Management and Remediation 165 447 171%

Real Estate and Rental and Leasing 360 413 15%

Finance and Insurance 156 312 100%

Wholesale Trade 238 211 -11%

Construction 279 209 -25%

Educational Services 225 119 -47%

Information 133 118 -11%

Unclassified 44 71 61%

Arts, Entertainment, and Recreation 55 56 2%

Health Care and Social Assistance 51 48 -6%

Manufacturing 31 42 35%

Management of Companies and Enterprises 30 21 -30%

Total 11,636 13,089 12%

Source: DC Department of Employment Services

Note: The BID area does not include employment data from Georgetown University or Georgetown Hospital




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GEORGETOWN BID AREA RESIDENTIAL DEVELOPMENT PIPELINE

Retail/

Name Address Type Units Residential SF Developer OfficeSF Delivery

Delivered

The Montrose 3050 R Street* Condo 15 33,000 Argos 0 Winter 2013

Under Construction

Adams Mason House 1072 Thomas Jefferson Apartment 5 3,812 MMG 2,933 Summer 2014

The Grace 3220 Grace Street Condo 7 5,950 Capital City RE 0 Summer 2014

1055 High 1055 Wisconsin Ave Condo 7 26,000 EastBanc 2,240 Fall 2014

Planned

Hillside 3601-3607 M Street Condo 28 70,000 EastBanc

Latham Micro Apartments 3000 M Street Apartment SB-Urban

West Heating Plant 1051 29th St NW Condo 70 Levy Group**

Total >132 >138,762

Source: Georgetown BID

*2 blocks outside of BID boundary

**Levy Group/The Georgetown Co/Four Seasons

RESIDENTIAL POPULATIONThough the Georgetown population is generally stable,

modest population growth is projected in Georgetown over

the short and medium term as young families have children

and new multi-family housing developments are delivered.

2013 demonstrates that despite limited land parcels, housingdevelopment in Georgetown is still enticing to developers,

with several projects being delivered, under construction, or

announced. The Montrose, just two blocks outside the BID

area boundary at R Street and 31st Street, delivered 15

condos (33,000 SF) in late 2013. Within the BID boundary,

three development sites are currently under construction.

These projects will deliver 14 condo units (32,000 SF), five

apartment units (3,800 SF), and retail/office space (5,000

SF) in 2014. Three larger residential, mixed-use developmentprojects were also announced: The Hillside (to replace the

Key Bridge Exxon); Latham Micro-apartments (to replace

the Latham Hotel); and the West Heating Plant (to convert

the defunct industrial site).

No delivery dates have been announced for residential

projects in the pipeline, but these projects are already

heightening the attention paid to multi-family construction

in Georgetown. Developers in Georgetown forecast multi-

family residential property values of $800 to $1,200 per

square foot (SF). This valuation is often higher than com-mercial property values, creating a value gap that can

make converting properties to residential use an attractive

possibility: studying the potential impacts on the professional

office community, infrastructure, and city services will be

crucial to understanding the future of Georgetowns

commercial district.

DCs population explosion continued through 2013, netting

more than 1,000 residents each month and growing to atotal population of 646,000.12If recent trends hold, roughly

6,500 of the new residents in 2013 fell within the 25 to

34 year old young professional cohort in DC, which

accounted for 50 percent of growth in the 2010 to 2012 period.



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1055 High, 1055 Wisconsin Ave, NW

The Grace, 3220 Grace St, NW

Adams Mason House, 1072 Thomas Jefferson St, NW

The Montrose, 3050 R St, NW


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Conservative estimates of 2013 population growth suggest

3,700 additional (95,000 total) 25 to 34 year olds within a

3 mile radius of Wisconsin Avenue and M Street. Comparatively,

the 45 to 54 year old cohort grew by about 750 (32,000

total) over the same period. As in 2012, the average household

disposable income of the young professionals tends to be

lower than older cohorts, but the sheer size of the group

means that young professionals have great spending power.

In aggregate, households headed by 25 to 34 year olds

within three miles of Georgetown have an impressive $3.95

billion of disposable income.13

Georgetown is one of the most affluent neighborhoods in

the region: 64 percent of households within a half-mile from

the intersection of Wisconsin Avenue and M Street earn at

least $100,000 per year; 33 percent of households earn at

least $200,000. The median home value in this area is about

$992,000. These figures hold strong even at a 3-mile radius,

with 68,000 households (43 percent) earning at least

$100,000.14

2000

2010

2013

2018

15.5

14.5

13.5

12.5

GEORGETOWN POPULATION

Source: U.S. Census Bureau 2000 and 2010 Decenial Census; ESRI Business Analyst Online (2014)

15.1

14.5

THOUSANDS


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2000

2010

2013

201820

20

680

640

600

560

DC POPULATION

Source: U.S. Census Bureau 2000 and 2010 Decenial Census; ESRI Business Analyst Online (2014)

DISPOSABLE INCOME BY AGE COHORTS, 2013

FROM WISCONSIN AVENUE AND M STREET

25-34 year olds 45-54 year olds

Year-on-Year % Year-on-Year %

1 mile radius 2013 Change 2013 Change

Households 6,243 9.2% 1,898 1.6%

Average Disposable Income $80,400 0.7% $121,263 0.4%

Aggregate Disposable Income $502 million 9.9% $230 million 1.9%

3 mile radius

Households 54,267 0.2% 20,942 3.3%

Average Disposable Income $72,815 11.0% $103,600 11.6%

Aggregate Disposable Income $4.0 billion 11.3% $2.2 B 15.3%

Source: ESRI Business Analyst Online (2014)

668

646

676

THOUSANDS


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1 mile

3 miles

.5 miles

BETHESDA

CHEVY CHASE

Washington, DC

Maryland

Virginia

ARLINGTON

BAILEYS CROSSROADS

PETWORTH

ROSSLYN

CLARENDON

BALLSTON

COLUMBIA

HEIGHTS

CHINATOWNDUPONT CIRCLE

CLEVELAND

PARK

DISTANCES FROM WISCONSIN AVENUE

AND M STREET


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GEORGETOWN DEMOGRAPHIC PROFILE, 2013

FROM WISCONSIN AVENUE AND M STREET, NW DC

0-0.5 mi 0-1 mi 0-3 mi

Total Population 9,263 41,394 318,199 646,449

Households

Total Number 4,187 18,453 158,388

Average Household Size 1.95 1.66 1.85 2.17*

Owner Occupied 47% 36% 36% 41%*

Median Home Value $960,556 $695,398 $585,037 $441,574

Household Income

Median Household Income $126,961 $100,905 $84,478 $63,342

Average Household Income $180,575 $138,610 $121,221 $101,735

Share of households with $100,000 or more 64% 51% 43% 34%

Share of households with $200,000 or more 33% 20% 15% 11%

Source: ESRI Business Analyst Online (2014) and US Census Bureau (2014) *Imputed from 2012 data

PhotoCredit:CadeMartinforGeorgetownBID


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COMMERCIAL

BUILDINGS


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As Georgetown approaches the constraints of full build-out, it

will become essential to find innovative ways to balance a variety

of space and programming needs: the growing share of office

tenants that value efficient, high quality space; an increasinglyyouthful workforce and residential population that enjoys dense,

urban amenities, and; retailers and restaurateurs seeking new opportunities

in Georgetown.

Finding ways to induce investment in the renovation and renewal of buildings is

likely to be a determining factor in Georgetowns office sector performance in both

the short and medium terms. Continuing to retain businesses that are attracted to

Georgetowns many small and unique buildings is, too. And experiments to find

the highest and best use of spaces in the Canal & Waterfront District will become

increasingly important.

BUILDING IMPROVEMENTSGeorgetown will face increasing pressure to renew and

refurbish its commercial buildings. While the office market is

sluggish across the region, the market is tightest around high

quality properties. Between 2011 and 2013 there was net

absorption of 8.1 million SF of Class A office space across the

Washington Region. In the same period, there was negative

absorption of 8.1 million SF of Class B/C office space.15

A similar pattern is observed in Georgetown. A flight

to quality is clearly underwayand its important for

Georgetown to consider how to stimulate the renovation of

its building stock. Interestingly, however, Class B/C rental

rates in Georgetown have been rising over the last three

years. This feature of the market, in the absence of other

incentives, will likely reduce owner motivation to renew

buildings in the short term.


PhotoCredit:JStreetCompanies


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130

65

0

-65

-130

9,000

4,500

0

-4,500

-9,000

OFFICE NET ABSORPTION BY CLASS

OF SPACE, 2011-2013

Source: Costar (2014) and Delta Associates/Transwestern Trendlines2014 (2014)

Note: In Georgetown, negative absorption of 63,000 SF B/C space was recorded

in 2011 when 1051 31stStreet was closed as an office building. Today, the site is the

Capella Hotel and is not included in current office vacancy calculations.

GEORGETOWN

DC REGION

CLASS OF SPACE

A

B/C

CLASS OF SPACE

A

B/C

THOUSANDSOFSF

THOUSANDSO

FSF

2009

2010

2011

2012

2013

$44

$40

$36

$32

BID AREA GROSS RENTAL RATE ($ PER SF),BY CLASS OF SPACE

Source: CoStar (2014)

$39

$42

Another indicator of the state of Georgetowns buildings is

the relative paucity of LEED certified spaces. Though LEED

certified space in the rest of DC is proliferating, there are only

five LEED certified spaces comprising 214,000 SF in

Georgetown. In comparison, 19.5 million SF were certified

across DC in 2013. Data from the US Green Building Council

suggests that Georgetowns share of LEED space is decliningdisproportionate to Georgetowns share of total commercial

space.

121,000121,000 SF OF CLASS AOFFICE SPACEABSORBED BETWEEN

2011 AND 2013


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MILLIONSOFSF

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

100

75

50

25

0

CUMULATIVE DC LEED CERTIFICATIONS (SF)

Source: U.S. Green Building Council (2014) LEED Project Directory.

Note: Excludes LEED for Homes and LEED ND. Properties that are recertified at a different standard may be double counted.

89M

GEORGETOWN SHARE OF CUMULATIVE LEED CERTIFICATIONS

2007

2008

2009

2010

2011

2012

2013

1.60%

1.20%

0.80%

0.40%

0.00%

Source: U.S. Green Building Council (2014) LEED Project Directory.

Note: Excludes LEED for Homes and LEED ND. Properties that are recertified at a different standard may be double counted.

0.24%


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Rentable Building Area (Group)

Properties


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CANAL & WATERFRONT DISTRICTThe Georgetown 2028 Plan* recommends fostering new

retail, restaurant, and programming opportunities as well as

transportation/streetscape improvements in the Canal &

Waterfront District between the Potomac River and M Street.

A cornerstone action in this set of recommendations is the

conversion of ground floor office space into restaurant space,

which would simultaneously create new retail and restaurant

amenities for visitors and office workers as well as decrease

overall vacancy in the office market.

All parcels south of M Street in Georgetown are zoned W

(waterfront), permitting commercial and light industrial

uses as a matter of right. There are currently about 110

existing commercial properties south of M Street, 2.8 million

SF of which are classified as officenearly 78 percent of the

BIDs total office space.17 The five-year average vacancy rate

of office spaces in the Canal & Waterfront District is 12.8

percent, although vacancy has decreased to 9.5 percent in

recent periods. As of Q1 2014 twenty-one office properties

currently have 267,000 SF of vacant space.18Back of the

envelope calculation suggests that converting and leasing

only half of the ground floor spaces in these properties to

retail has the potential to absorb 67 percent of current

vacant space.19

*Read the full plan at

www.georgetowndc.com/georgetown2028

PhotoCredit:SamKittnerforGe

orgetownBID


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NOTABLE GEORGETOWN TECH OFFICES

Year Georgetown

Company Industry Founded Office Headquarters

Cogent Telecommunications 1999 1999 Georgetown

Parchment Education Technology 2003 2013 Arizona

EverFi Education Technology 2008 2014 GeorgetownPersonal Data Security 2009 2011 Georgetown

Audax Health Health Care 2010 2010 Georgetown

Exhilarator Startup Excelerator 2011 2011 Georgetown

SmartThings Consumer Electronics 2012 2013 Georgetown

Source: Georgetown BID and company websites

Source: DC Office of the Chief Technology Officer (2014)

FIBER BROADBAND COVERAGE, WASHINGTON, DC

GEORGETOWN

FIBER BROADBAND

AVAILABLE

DENTPL

R

D

MAP OF GEORGETOWN


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NST

NST

DUMBAR

TONST

OST

OST

PST

PST

VOLTAS

T

QST

CAMBRID

GEPL

QST

DENTPL

RESERV

OIRRD

PROSPE

CTST

MST

MST

CADYSA

LLEY

BLUESALLEY

WISCONSINAVE

THOMASJEFFERSONST

34THST

37THST

33RDST

POTOMACST

B

ANKST

31STST

30THST

29T

HST

28THST

27THST

32NDST

35THST

36THST

WISCONSINAVE

POTOMAC RIVER

ROCKCREEK

PARKWAY


WHITEHURSTFWY

KST

C&O CANAL

MAP OF GEORGETOWNBID COMMERCIALPROPERTIES, BY TYPE

Rentable Building Area

25,000

100,000

200,000

300,000

400,000

482,223

Property Type

Retail

Hospitality

Office

Flex

Industrial

Land

Specialty

Source: Costar (2013)

Canal & Waterfront District


RETAIL MARKET


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RETAIL MARKET

One of Georgetowns defining features is its vibrant retail districtP


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One of Georgetowns defining features is its vibrant retail district.

With more than two miles of retail store frontage and over 450

stores, restaurants, spas, and salons, Georgetown remains a premier

shopping destination in the Washington region. Demand for

Georgetown retail space remains very high, as evidenced by the

40 retail trade and amenity businesses that opened in the BID area, a net gain of 18

in 2013. Rents are also rising at a rate of 6 percent per year, and can exceed $165 per SF

triple net for prime locations.20

New retail stores included region-exclusive locations of Billy

Reid, Frye, Goorin Bros. Hat Shop, and Steven Alan. There

were new local/independent stores, too, including American

Holiday, Lovely Bride, and Sabun Home. And Cadys Alley

successfully experimented with a pop-up brick and mortar

incubator for emerging internet retailers.

The Shops at Georgetown Park re-opened in 2013, rebranded

as Georgetown Park. At 256,000 SF, it was the largest retaildevelopment delivery in DC of the year. As of Q1 2014 it is 94

percent leased: anchor tenants include J. Crew, Anthropologie,

H&M, TJMaxx/HomeGoods, and Pinstripes. DSW, and the DC

DMV also opened in early 2014.

GEORGETOWN BID AREARETAILERS BY TYPE, 2013

Type Number % of Total

Fashion and Apparel 118 26%

Full Service Restaurants 68 15%

Home Decor 60 13%

Spas and Salons 49 11%

Limited Service Eating Places 34 7%

Other Retail Goods 25 5%

Coffee, Cupcakes, and Gourmet 18 4%

Eye Glasses / Health 14 3%

Banks 11 2%

Specialty services 10 2%

Drycleaning and Laundry Services 10 2%

Sporting Goods and Hobbies 10 2%

Consignment and Used Goods 9 2%

Gyms / Yoga Studios 8 2%

Beer, Wine, and Liquor Stores 4 1%

Gasoline Stations 4 1%

Book Stores and News Dealers 2 0%

Lounges 2 0%

Movie Theaters 1 0%

Grand Total 457 100%


RETAIL CHANGE SUMMARY, 2013

Openings Closings Net Gain (Loss)

Retail Trade 25 18 7

Full Service Restaurants 10 1 9

Limited Service Eating Places 3 2 1

Retail Services 1 (1)

Arts, Entertainment and Recreation 2 2

TOTAL 40 22 18


PhotoCredit:SamKittne

rforGeorgetownBID


28/60


To estimate how well BID-area merchants serve neighborhoodneeds, retail demand potential for several industries can be

estimated based on demographic characteristics of the

population residing one-half mile from the intersection of

Wisconsin Avenue and M Street. These figures can then be

compared to how many stores in the BID area fall within each

industry. Opportunities where spending levels are relatively

high compared to the concentration of BID retailers seem to

be present in a number of sectors, including garden supply,

hardware and building materials, florists, wine and spirits, andfull service grocery stores.

MARKET HIGH RENT ($/SF)

2012 2013

High rent High Rent % growth

($/psf/year) ($psf/year)

Downtown East $95 - $105 $100 - $110 12%

East End $100 $110 10%

Mt. Vernon Triangle $50 $55 10%

14th Street-Logan Circle $75 $90 20%

Penn Quarter-Chinatown $200 $215 8%

NoMa-H Street NE $55 $65 18%

Georgetown $155 $165 6%

Dupont Circle $110 $110 0%

Chevy Chase $100 $100 0%

Source: Cushman and Wakefield, District Retail, May 2014.

GEORGETOWN RESIDENT RETAIL POTENTIAL,

SELECT INDUSTRIES

Retail Demand Stores in

Potential ($) Georgetown

BID

Gardening Supplies 314,445 0

Used Merchandise Stores 452,489 9

Florists 2,123,899 2

Book and Music Stores 2,246,430 3

Specialty Food Stores 3,145,793 23

Beer, Wine & Liquor Stores 6,043,891 4

Hardware and Building Materials 5,541,105 2

Sporting Goods/Hobby/Musical Instr Stores 6,562,719 10

Furniture & Home Furnishings Stores 7,272,098 60

Limited-Service Eating Places 7,122,251 34

Full-Service Restaurants 19,521,633 68

Clothing & Clothing Accessories Stores 22,639,774 118

Gasoline Stations 24,639,839 4

Auto Dealers 34,840,699 0

Grocery Stores 43,196,184 0

Source: ESRI Business Analyst Online (2014) and Georgetown BID. Residents located 0.5 miles

from the intersection of Wisconsin Ave and M Street.

450+450+ SHOPS, RESTAURANTS,AND SALONS WITHIN0.25 SQUARE MILES


29/60


GEORGETOWN BID AREA RETAIL OPENINGS AND CLOSING, 2013

2013 OPENINGS 2013 CLOSINGS

RETAIL TRADE Alex and Ani 2bebe

American Holiday Adidas

Artists Proof Aerosoles

Billy Reid Ann SacksBloomers Bobbie Medlin

Bonobos Cannons Seafood Market

Britt Ryan Chic Boutique

Buffalo Exchange COOGI

Cadys Alley Pop-up Bazaar J. Chocolatier

Capital Consignment Jennifer Convertibles

Coterie MOCA DC

Dr. Martens Monarc Antique Rug

EGG by Susan Lazar P&C Art

Frye Parish GalleryGNC Riccardi

Goorin Bros. Hat Shop Sassanova

La Musa Streets of Georgetown

Lovely Bride Yves Delorme

Matt Cameron Tapestry

Reebok

Reddz Trading

Sabun Home

Steven Alan

TJ Maxx / Home Goods*

Tory Burch

FULL SERVICE RESTAURANTS AGB/Observatory (at the Graham) Third Edition

Capitol Prague

El Centro D.F.

Eno Wine Bar

Gypsy Sallys (music venue and restaurant)

The Grill Room and Rye Bar (at the Capella)

Kintaro

Malmaison

Pho Viet and Grille

Rialto

LIMITED SERVICE EATING PLACE Good Stuff Eatery Redfire Grill Kabob

Olivia Macaron* Iceberry

ShopHouse

RETAIL SERVICES Salon Rafik

ARTS, ENTERTAINMENT Corepower Yoga

AND RECREATION Washington Sports Club*

*Georgetown Park


Georgetown retailers will nevertheless face rapidly


30/60


2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

6

4

2

0

DC RETAIL DELIVERIES, 2001-2015 AND PIPELINE

Source: Costar (2014) and WDCEP (2014) Development Report

2013 delivery figure does not include Georgetown Park

Nearterm

Pipeline

Med.term

Lon

gterm

Retail Deliveries

Cumulative Deliveries

Total Georgetown Retail SF, as of 2013

MILLIONSOFSF

5.4

increasing competition in the coming years. Between

2001 and 2013 developers delivered 5.4 million SF

of retail space in DC, nearly 2.5 times the total retail

space in Georgetown. More than 7 million additional

SF are in the pipeline.21Retailers and consumers will

have an unprecedented level of choice about where

to locate and shop.

PhotoCredit:SamKittnerforGeorgetow

nBID


31/60

RETAIL LOCATIONS BY TYPE

N STNST

DUMBARTON ST

O ST

O ST

P S T

P ST

VOLTAST

QST

CAMBRIDGE PL

DEN TPL

RST

Q ST

DENT PL

RESE RVOIR RD

PROSPECTST

M STM ST

CADYS ALLEY

WHITEHURSTFWY

BLUES ALLEY

WIS CONS INAVE

THOMAS

JEFFE

RSON

ST

34TH

ST

37T

H

ST

33RD

ST

POTOMA

C

ST

BAN

K

ST

31STS

T

30

TH

ST

29TH

ST

28TH

ST

27TH

ST

32NDST

35TH

ST

36

TH

ST

WIS CONS INAVE

NSTNST

DUMBARTON ST

O ST

O ST

P ST

P ST

VOLTAST

QST

CAMBRID GE PL

DEN TPL

RST

Q ST

R S

DENT PL

RESE RVOIR RD

PROSPECT ST

M STM ST

CADYS ALLEY

WHITEHURSTFWY

BLUES ALLEY

THOMAS

JEFFE

RSON

ST

34TH

ST

37T

H

ST

3

3RD

ST

POTOMA

C

ST

BAN

K

ST

31STS

T

30

THST

29T

HST

28T

H ST

27TH

ST

32NDST

3 5TH

ST

36TH

ST

WIS CONS

INAVE

N STN ST

DU MBARTON ST

O ST

OST

PST

PST

VOLTA ST

Q ST

CAMBRIDG E PL

DENT PL

RST

QST

DEN T PL

RESERVO IR RD

PROSPECT ST

MSTMST

CADYS ALLEY

WHITEHURSTFWY

BLUES ALLEY

TH

OMAS

JEFFER

SON

ST

34

TH

ST

37TH

ST

33RD

ST

PO

TOMA

C

ST

BANK

ST

31STST

30T

H

ST

29TH

ST

28TH

ST

27TH

ST

32

NDST

35

TH

ST

36T

HST

WIS CONS INAVE

N STNST

DUMBARTON ST

O ST

O ST

P ST

P ST

VOLTA ST

QST

CAMBRIDGE PL

DEN TPL

RST

Q ST

DENT PL

RESE RVOIR RD

PROSPECTST

M STM ST

CADYS ALLEY

WHITEHURSTFWY

BLUES ALLEY

TH

OMAS

JEFFER

SON

ST

34

TH

ST

37TH

ST

33RD

ST

PO

TOMA

C

ST

BANK

ST

31STST

30T

H

ST

29TH

ST

28TH

ST

27TH

ST

32NDST

35

TH

ST

36T

H

ST

WIS CONS INAVE

NSTNST

DUMBARTON ST

O ST

O ST

P ST

P ST

VOLTAST

QST

CAMBRIDGE PL

DEN TPL

RST

Q ST

R S

DENT PL

RESE RVOIR RD

PROSPECTST

M STM ST

CADYS ALLEY

WHITEHURSTFWY

BLUES ALLEY

TH

OMAS

JEFFER

SON

ST

34 T

H

ST

37TH

ST

3

3RD

ST

PO

TOMA

C

ST

BANK

ST

31STST

30T

HST

29T

HST

28T

H ST

27TH

ST

32NDST

35TH

ST

36T

H

ST

WIS CONS

INAVE

N STN ST

DU MBARTON ST

O ST

O ST

PST

PST

VOLTA ST

Q ST

CAMB RIDG E PL

DEN T PL

RST

QST

DEN T PL

RESERVOIR RD

PROSPECT ST

MSTMST

CADYS ALLEY

WHITEHURSTFWY

BLU ES A LLEY

THOM

ASJEF

FERSO

N

ST

34TH

ST

37THS

T

33

RD

ST

POTO

MACS

T

BANKS

T

31S

TST

30TH

ST

29TH

ST

28TH

ST

27T

H

ST

32

NDST

35TH

ST

36TH

ST

WIS CONS IN AVE

Fashion Retail Salons & Spas Retail

Gourmet Retail Services Retail

Home Dcor

National Retailers Local/Regional Retailers

Specialty Retail



Pho


32/60


2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

18

12

6

0

TOTAL STARS OF BID AREA RESTAURANTS,WASHINGTONIAN MAGAZINE 100 VERY BEST LIST

Source: Washingtonian Magazine(2000-2014)

After a net loss of five full service restaurants in 2012, a net

gain of nine restaurants helped rebound restaurant numbers

in 2013. New establishments included El Centro D.F., Eno

Wine Bar, and Rialto. Though several restaurant spaces on

M Street converted to retail trade uses, restaurateurs began

building out new spaces south of M Street in 2013: The Grill

Room and Rye Bar (at the Capella Hotel), Malmaison, and

music venue/restaurant Gypsy Sallys. Good Stuff Eatery,

Olivia Macaron, and ShopHouse were new limited-serviceeateries in 2013.

There are 68 full service restaurants in the Georgetown BID

area as of Q1 2014. Bourbon Steak, 1789, and Unum garnered

coveted spots on the Washingtonian Magazine100 Very Best

Restaurants list in 2013; in 2014 Bourbon Steak and 1789

made this list again.17Since 2000 the number of restaurants

on this list (and their collective stars) has declined.22As new,

buzz-worthy concepts (e.g. Fiola Mare, which opened in early2014 at Washington Harbour) arrive in Georgetown, however,

there may be some upward movement in this measure over

the next few years.

otoCredit:SamKittnerforGeorgetownBID

Source: Cushman and Wakefield, District Retail, May 2014 and Georgetown BID

DUPO

NT

CIRC

LE

GEOR

GETO

WN

14TH

STR

EET

-

LOGAN

CIRC

LE

EAST

END

-

PENN

QUA

RTER

-CHINA

TOWN

OTHE

R

DOWNT

OWN

EAST

2013 FOODSERVICE AND BEVERAGE SALES(IN MILLIONS)

$61.6

$37.7

$68.5

$35.2$33.2

Q ST

CAMBRIDG

QST

GEORGETOWN FULLPho Viet


33/60


NSTNST

DUMBARTONST

OST

OST

PST

PST

VOLTAST

QST

PROSPECTST

MSTMST

CADYSALLEY

WHITEHURSTFWY

E

BLUESALLEY

THOMAS

J EFFERS O

N

S T

3 4TH

S T

3 3 RD

S T

POTOMAC

S T

BANK

S T

3 1 S T

S T

3 0TH

S T

2 9TH

S T

2 8 TH

S T

2 7 TH

S T

32NDST

3 5 TH

S T

W

ISCONSINAVE

C&OCANAL

K ST

POTOMACRIVER

GEORGETOWN FULLSERVICE RESTAURANTS

New for 2013/Q1 2014


Fiola Mare

The Grill Room& Rye BarGypsy Sallys

Malmaison

Kintaro

CapitolPrague

Pinstripes

El Centro D.F.

AGB/Observatory

Eno Wine Bar

RialtoI-ThaiRi-Ra Irish Pub

OFFICE MARKET


34/60


OFFICE MARKET

The Georgetown BID area contains about 2.8 million SF of officePhoto


35/60


space. The total vacancy rate at the end of 2012 was 9.1 percent

(269,000 SF), down 3 percentage points from last year. Much of

this decrease is accounted for by leasing activity at Waterfront

Center (1010 Wisconsin Avenue; moved in 69,000 SF), the Foundry

Building (1055 Thomas Jefferson Street; moved in 50,000 SF), and Jefferson Court

(1025 Thomas Jefferson Street; moved in 25,000 SF).23 The net absorption of

88,000 square feet in 2013 accompanied a net increase of about 700 jobs in

office-using sectors.

The BID areas vacancy rate was 1.6 percentage points lower

than the citywide figure at years end. This figure placed

the Georgetown BID area among leading performers in

2013: of the major downtown submarkets, the BID compared

favorably to the Central Business District (CBD), 10.4 percent

vacancy) and East End (9.0 percent vacancy) but was

outperformed by the West End (4.7 percent vacancy).24

Despite stronger leasing performance, average rental

rates edged up only 1 percent year-on-year, suggesting

that observed vacancy rates are near the market-clearing

equilibrium in Georgetown. Average Georgetown gross

office rents remain among the lowest of the regional submar-

kets at $41.85 per SF.25In other words, at the end of 2013,

the average rent in Georgetown was 20.1 percent less than

in East End, where some of the regions highest office rents

are found (this gap is slightly smaller than in 2012, when thefigure stood at 22.1 percent). Georgetowns tenant mix for

office space is composed of non-profit, political communica-

tion and lobbying, architectural, design, and mid-size law

firms. Interviews with brokers suggest that firms that locate

in Georgetown tend to stay in Georgetownoften renewing

their leases or moving to another space in Georgetown.

oCredit:SamKittnerforGeorgetownBID

PhotoCredit:SamKittnerfor

GeorgetownBID

With the renovation of Jefferson Court, the ratio of Class A

to Class B space in Georgetown improved slightly in 2013

How this space is marketed for reabsorption may have a

significant impact on Georgetown. If CBD office space is


36/60


to Class B space in Georgetown improved slightly in 2013

to 1.5:1 (from 1:1 in 2012). This is an important indication that

Georgetown property owners are reacting to the general

flight to quality that has played out across DC: even as

office tenants demand less and less space, the performance

of Class A property remains strong, especially compared to

Class B and C spaces. In Georgetown, between 2011 and 2013

net absorption of Class A office space was 121,000 SF

compared to -124,000 SF of Class B/C space.26

Since Georgetown is not eligible for federal Government

Services Administration (GSA) leases due to its distance

from Metro and other factors, it has been relatively insulated

from the impacts that are being felt in the CBD and East End

which, together, host about 50 million square feet of GSA

leasing. As GSA carries out a program of densification (using

fewer square feet for each employee) there will be a com-

mensurate reduction in the amount of space leased by GSA

over the coming years.

g p g p

repurposed for residential or hotel uses, there may be

impacts on Georgetowns hospitality and retail sectors.

If conversions do not occur, there will likely be downward

movement in both Downtown and Georgetown rents, and

more persistent vacancy as the market adjusts to less total

demand.

Falling office rents combined with rising residential values

might signal that some office buildings with convertible floor

plates will convert to residential in coming years. Studying the

impacts of such conversion is an emerging research priority

for the BID.

PhotoCr

edit:RBProperties

SUBMARKET TOTAL VACANCY SUBMARKET GROSS RENTAL


37/60


COMPARISON 2013

(AT YEAR-END)

DC - Citywide 10.7%

DC SUBMARKETS

Capitol Riverfront 16.5%

NOMA 16.4%

Southwest 11.0%

CBD 10.4%

Capitol Hill 9.4%

Georgetown BID 9.1%

East End 9.0%

Uptown 7.7%

Southeast 6.0%

West End 4.7%

MD/VA SUBMARKETS

Rosslyn-Bal lston Corridor 17.9%

Silver Spring 10.7%

Bethesda-Chevy Chase 9.1%


0K

B

BA C

C

500K 1,000K 1,500K 2,000K 2,500K 3,000K

RENTABLE BUILDING AREA (RBA)

PROPERTIES

25,000 SF

PROPERTIES


38/60



20%

15%

10%

5%

0%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2000

Rosslyn-Ballston Corridor

Bethesda/Chevy Chase

CBD

DC (Citywide)

Georgetown BID

10.7%

9.1%

AVERAGE OFFICE GROSS RENTAL RATE ($ PER SF),

2000-2013 (AT YEAR-END)

$55

$45

$35

$25

2001 2002

2003

2004

2005

2006

2007

2008

2009 2010 2011 2012 201320

00

$41.35

$48.97

17%IN GEORGETOWN,THE AVERAGE OFFICE

RENT IS 17% LOWER

THAN IN THE CBD

IDGEPL

DENTPL

RST

RST

RESERV

OIRRD

OFFICE PROPERTIES IN


39/60

Source: Costar (2013) and Georgetown BID

NST

NST

DUMBAR

TONST

OST

OST

PST

PST

VOLTAS

T

QST

CAMBRID

GEP

QST

DENTPL

PROSPE

CTST

MST

MST

CADYS

ALLEY

WHITEHURSTFWY

BLUESALLEY

THOMASJEFFERSONST

34THST

37THST

33RDST

POTOMACST

B

ANKST

31STST

3

0THST

29T

HST

28TH

ST

27THST

32NDST

35THST

36THST

WISCONSINAVE

POTOMAC RIVER

ROC

KCREEK

PARKWAY

C&O CANAL

GEORGETOWNWATERFRONTPARK K

ST

THE GEORGETOWN BID


25,000

100,000

200,000

300,000

Building Class

A

B

C


HOSPITALITY


40/60


HOSPITALITY

AND VISITORS

With the opening of the Capella hotel in 2013, nearly half of

Georgeto ns 727 hotel rooms fall ithin the l r class categor

PhotoCre


41/60


Georgetowns 727 hotel rooms fall within the luxury class category.

This figure means that Georgetown comprises 21 percent of

the luxury class rooms in DC. Despite a dip in occupancy rates

and total supply of hotel rooms, 2013 total revenues grew almost

7 percent from 2012, generating $9.4 million in hotel sales taxes.27

HOTELS

In addition to the Capella, the Graham Hotel also openedin the former Monticello space. These two projects

brought 49 and 57 rooms online, respectively. In Q4 2013

developers announced, however, that the Latham Hotel

would likely be renovated into a mixed-use, micro-apart-

ment complex. With this announcement, Georgetowns

hotel room supply (as well as its collection of hotel

operators) will stabilize at 727down approximately

60 rooms from the 2009-2011 period.

Over the past five years, occupancy rates in Georgetown

have averaged 72 percent; this is on par with the DC

average and compares favorably to other large cities.

However, there is some evidence that Georgetowns

current collection of hotels has a slightly different

dynamic than the collection present in the 2009-2011

period. As luxury class hotels have become predominate,

the average daily rate has risen from an average of $297

in the 2009-2011 period to $343 in the 2012-2013 period(and an astounding $370 in 2013). Between the same

periods, occupancy dipped slightly from 73 percent to

70 percent.28

Of course, occupancy also varies month-to-month. In

Georgetown, there are two distinct high seasons, one

peaking in April and one peaking in October. In these

months, occupancy regularly exceeds 80 percent,

compared to the December to January low season,where occupancy hovers near 52 percent.29

DATE

AVERAGEOCCUPANCY%

JANU

ARY

FEBR

UARY

MARC

H

APRIL

MAY

JUNE

JULY

AUGU

ST

SEPT

EMBE

R

OCTO

BER

NOVE

MBER

DECEMB

ER

80

60

40

20

0

5-YEAR AVERAGE HOTEL OCCUPANCY BY

MONTH, 2009-2013

Source: Smith Travel Research (2014)

ANNUALAVERAGE

edit:CapellaWashington,D.C.Georgetown

OCCUPANCY RATE

$

AVERAGE DAILY RATE$371


42/60


75%

70%

65%

60%

Source: Smith Travel Research (2014)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$400

$350

$300

$250

$200

$27

$225

$175

$125

REVENUE PER AVAILABLE ROOM

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$64

$56

$48

$40

TOTAL REVENUE

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

MILLIONS

$64M

$251

67%

QST

CAMBRID

GEPL

DENTPL

RESER

VOIR

GEORGETOWN HOTELS


43/60


NST

NST

DUMBAR

TONST

OST

OST

PST

PST

VOLTAS

T

QST

PROSPE

CTST

MST

MST

CADYSA

LLEY

WHITEHURSTFWY

BLUESA

LLEY

34THST

33RDST

POTOMACST

BANKST

31STST

30THST

29THST

28THST

27THST

32

NDST

35THST

36THST

WISCO

NSINAVE

POTOMAC RIVER

C&O CANAL

ROCKCREEK

PARKWAY


GEORGETOWN HOTELS


25,000

100,000

200,000

300,000

400,000

Source: Costar (2013) and Georgetown BID

20

TOTAL VISITORS TO DC OLD STONE HOUSE VISITORS67K


44/60


2001

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

20

11

2012

20

18

16

14

Source: Destination DC (2013)

THOUSANDS

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1,400

900

400

VISITORS TO DC REGION OF C&O CANAL

Source: National Park Service, IRMA Portal, Park Visitor Use Statistics (2014)

THOUSANDS

MILLIONS

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

21

14

7

0

CANAL BOAT AND C&O VISITOR CENTER VISITS


CANAL BOAT

VISITOR CENTER

1.4M

18.5M

THOUSANDS

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

65

50

35

20


2K

VISITOR AMENITIESParks are important recreational and cultural amenities

PhotoCred


45/60


2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

14

12

10

8

6

4

2

0

NATIONAL PARK SERVICE DEFERRED

MAINTENANCE BACKLOG

Source: Coburn, Tom (2013). Parked! Oversight Report. Office of Senator Tom Coburn.

NATIONAL PARKS MAINTENANCE BACKLOG, FY2012

Maintenance Backlog Total Operating Budget

C&O Canal Park $116,727,982 $10,152,000

Rock Creek Park $37,018,292 $8,814,000

National Mall $530,000,000 $33,877,000

Source: Coburn, Tom (2013). Parked! Oversight Report. Office of Senator Tom Coburn.

BILLIONS

Parks are important recreational and cultural amenities

of Georgetown. The Chesapeake and Ohio Canal National

Historical Park and Rock Creek Park converge in Georgetown.

Both parks are administered by the National Park Service, and

include management of Meigs Park, Francis Scott Key Park,

and the Old Stone House (all located on M Street) as well as

the Georgetown Waterfront Park. Adjacent to the waterfront,

Theodore Roosevelt Island is also managed by the National

Park Service. These parks have the potential to draw tens of

thousands of tourists to Georgetowns commercial corridor.

And as DC becomes more densely populated, urban parks

will play an increasingly important role as common recre-

ation rooms for locals and visitors.

Though Georgetown is home to a wealth of parks and historic

sites, federal budget shortfalls have limited the National Park

Services ability to leverage the full potential of Georgetowns

most esteemed public spaces. The deferred maintenance

backlogs for the C&O Canal Park and Rock Creek Park totaled

$117 million and $37 million, respectively, in FY2012. In

contrast, the entire, nation-wide allocation for the National

Park Services construction program, which funds deferred

maintenance activities, was $77 million.30

In 2013, limited federal funding allocations for Georgetowns

parks continued. The C&O Visitor Center opened for just 26

days in 2013, and the number of visitors continued an 11 year

decline to 1,583a 93 percent decrease from 2002 when the

visitor center saw over 22,000 people.31Equally disruptive

was the federal government shutdown, which closed parks

to the public and to basic maintenance operations. In

Georgetown, the shutdown meant that commercial traffic(including water taxis and tourist launches) was prohibited

at Washington Habour, signs urged visitors away from the

C&O Canal, and over two tons of trash accumulated in the

NPS-managed Waterfront Park before the BID stepped in to

haul it away. The situation underscored Georgetowns parks

vulnerability to federal funding uncertainty and NPS

management policies.

dit:SamKittner

forGeorgetownBID


46/60

Increasing access to Georgetown has the potential to produce

many upsides: more convenient commutes for workers and

PhotoCredi


47/60


residents, office rental rates more comparable to Downtown

properties, and more foot traffic for retailers. The Georgetown

community understands these imperatives, identifying 43

transportation related action items in the Georgetown 2028 Plan. Interventions that

will take place over the next 15 years include organized advocacy for a Georgetown

Metro station and a Georgetown Streetcar connection, the transformation of K Street

into a multi-modal gateway, establishing Georgetown as a bicycle friendly destination,

and better roadway and parking management.

it:SamKittnerforGeorgetownBID

MID-DAY TRAVEL TIMES FROM GEORGETOWN

VS. FARRAGUT SQUARE

Minutes travel from:

Destination Georgetown Farragut Square

Dupont Circle Car 6 5

Bike 10 7

Rosslyn Car 8 9

Bike 9 16

US Capitol Car 16 16

Bike 34 18

Tysons Corner Car 22 23

Bike ... ...

Bethesda Car 22 35

Bike 45 47

Union Station Car 27 17

Bike 31 18

Source: Georgetown BID and Capital Bikeshare

Bikeshare is one of many modes of transport that provide

convenient access to and from Georgetown. During the

business day, easy access to the GW Parkway, Rock Creek

Parkway, Route 66, and Interstate 395 make traveling by

car equally convenient despite the congestion that limits

traffic flow on Georgetowns thoroughfares at peak hours.

For example, travel times from Georgetown via car to

Capitol Hill, the SW Waterfront/Ballpark, Arlington County,

Montgomery County and Fairfax County are the same or

faster compared to trips starting in the CBD.


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Capital Bikeshare is rapidly growing as an important transpor-

tation alternative for Georgetown for commuters (especially

Monday through Friday) and tourists (especially on the

weekends) Between 2012 and 2013 trips ending in


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GEORGETOWN BIKESHARE STATIONS, 2012-13

Total Trips

Bikeshare Station 2012 2013

37th & O St NW / Georgetown University 25,249 26,788

C & O Canal & Wisconsin Ave NW 44,078 40,691

Georgetown Harbor / 30th St NW 31,041 36,481

M St & Pennsylvania Ave NW 37,812 50,968

Wisconsin Ave & O St NW* -- 18,279

Total 138,180 173,207

*Installed April 25, 2013

Source: Capital Bikeshare Trip History Data (2014) and Georgetown BID

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

20,000

15,000

10,000

5,000

0

BIKESHARE TRIPS TO GEORGETOWN, 2013


weekends). Between 2012 and 2013, trips ending in

Georgetown grew from 76,989 to 95,516 (24 percent) and

trips originating in Georgetown grew from 61,191 to 77,691

(27 percent). Growth occurred at most existing stations

and also from the immediate and strong adoption of the

Wisconsin Ave and O Street station, installed in April 2013.

This station accounted for an incremental increase of 13,000-

18,000 new trips to and from Georgetown, providing strong

evidence that there is latent demand in Georgetown for

additional Bikeshare stations.32


Bikeshare Member

Casual/Tourist

173,000173,000 BIKESHARE TRIPS

TO AND FROM GEORGETOWN

TOP 10 BIKESHARE STATIONS, TRIPS TERMINATING IN GEORGETOWN

BY SUBSCRIPTION TYPE, (2013)


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BIKESHARE TRIPS TO/FROM GEORGETOWN, 2013

End Station

Start Station Georgetown Elsewhere Total

Georgetown 10,829 66,862 77,691

Elsewhere 84,687

Total 95,516 173,207

Source: Capital Bikeshare Trip History Data (2014) and Georgetown BIDNote: Bikeshare reported 2.6 million trips system wide in 2013.

Number of Trips

1,941

3,000

4,000

5,000

6,000

6,522

Bikeshare Member

Casual/Tourist

Subscription Type


23RDS

TNW

22NDS

TNW

17THSTNW

K ST NW K ST NW

L ST NW

Q ST NW

CONSTITUTION AVE NW

INDEPENDENCE AVE SW

LYNNST

CANALROADNORTHWEST

VIRGINIAAVENW

19THSTNW

M ST NW

DUPONT CIRCLE

LINCOLN MEMORIAL

ROSSLYN

PhotoCredit:Georgetow

nBID

MODE SPLIT, BY SELECT CHARACTERISTICSThe relative importance of private cars will likely diminish

over the medium and long term, as young workers

become the dominant demographic. Householders aged

15 to 34 are 1 3 times more likely to be living car-free


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Public Transportation

WalkedOther

Worked at Home

Carpooled

Drove Alone

100%

80%

60%

40%

20%

0%

20007

DC

DC,W

ORKE

RS

AGED

20-24

Source: US Census (2014) Journey to Work ACS Survey Table B08101. Data for 20007 is 5-yearestimate (2008-2012). DC data is 2012 estimate.

source: US Census (2014), ACS Survey Table B25045.

15 to 34 are 1.3 times more likely to be living car free

now than they were in 2005 and 1.6 times more likely

than householders aged 35-64.34DCs younger residents

are learning to live without private cars, relying instead

on public transportation, walking, and other forms of

transportation like bicycles, taxis, and car-sharing. If

Georgetowns transportation management strategies

are to be far-sighted, taking this trend into account will

be necessary.

The degree to which a neighborhood is walkable is an

increasingly important consideration of potential residents,

businesses, retail and restaurant patrons, and tourists.

Initial pedestrian studies confirm that Georgetown

experiences substantial increases in pedestrian traffic on

Friday, Saturday, on Sunday; the density of businesses in

Georgetown makes it an extremely attractive destination.

Pedestrian traffic is as much as 2.7 times greater on an

average Saturday than a typical weekday. Making sure

Georgetowns pedestrians feel comfortable and safe at

peak and off-peak times is a significant interest of the BID.

100%

75%

50%

25%

0%

2005

15-34

YEARS OLD

35-64

YEARS OLD

2012 2005 2012

1 or More Car

Car-FreeSHAREOFHOUSEHOLDS

CAR-FREE HOUSEHOLDS, BY AGE AND YEAR

45

34

67%67% OF DC WORKERS

AGED 20-24 WALKOR TAKE PUBLIC

TRANSPORTATION

TO WORK

AVERAGE WEEKDAY VEHICLE VOLUMES, 2010-13

2010 2012 Change

Key Bridge 47,800 47,600 -0.4%

FOOT TRAFFIC INDEXREFERENCE DAY = WED = 1.0

3 0


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Canal Road 42,600 42,400 -0.5%

Whitehurst and K St 42,900 41,500 -3.3%

Pennsylvania and M St 27,600 25,500 -7.6%

Reservoir and 39th 19,500 19,400 -0.5%

Wisconsin and R St 17,400 18,000 3.4%

Q and 28th St 8,300 8,200 -1.2%

Source: DC Department of Transportation

Source: Georgetown BID, composite measure of Wisconsin Avenue, M Street, and Thomas

Jefferson Street. Data collected Q1 2014.

Monday

Tue

sday

Wedne

sday

Thursd

ay

Frid

ay

Satu

rday

Sunday

3.0

2.5

2.0

1.5

1.0

-1.5

-2.0 GEORGETOWN CAR2GO AT A GLANCE

Q1 2013 Q4 2013

Georgetown share of membership 2% 2%

Trips originating in Georgetown 7% 5%

Georgetown car turnover percentile 85th 65th

Source: Car2Go

Note: Turnover precentile rank indicates the percentage of cars that will be idle/unused for a

longer amount of time than an average car in Georgetown. In Q4 2013, cars in Georgetown sat

unused for less time than 65 percent of cars elsewhere in DC.

Photo

Credit:SamKittnerforGeorgetownBID

45%45% OF DC HOUSEHOLDS

ARE CAR-FREE IN THE15-34 YEAR OLD

AGE BRACKET

WHERE GEORGETOWN BID WORKERS LIVE WHERE GEORGETOWN RESIDENTS WORK

SILVER SPRING

PhotoCredit:S


54/60


Source: US Census Bureau (2014) OnTheMap Application, 2011 data

516 Jobs/Sq. Mile

1752 Jobs/Sq. Mile

53111 Jobs/Sq. Mile

112193 Jobs/Sq. Mile


Source: US Census Bureau (2014) OnTheMap Application, 2011 data

542 Jobs/Sq. Mile

43155 Jobs/Sq.


343605 Jobs/Sq.

606943 Jobs/Sq.

BETHESDA

CHEVY CHASE

SILVER SPRING

Washington, DC

ARLINGTON

BAILEYS CROSSROADS

MERIDIAN HILL PARK

WHITE HOUSE

CHEVY CHASE

SILVER SPRING

Washington, DC

ARLINGTON

BETHESDA CHEVY CHASE

SILVER SPRING

Washington, DC

ARLINGTON

BAILEYS CROSSROADS

MERIDIAN HILL PARK

WHITE HOUSE

COMMUTING PATTERNSConsidering where workers who are employed by busi-

nesses within the BID live, it is important to understanding

the areas transportation needs. Thirty percent of workers

in the BID area are DC residents. Unlike suburban-based

workers, who are distributed across the region, DC-based

workers are clustered in a few dense pockets, primarily

along the 14th and 16th Street corridors which run through

= Georgetown = Georgetown

the Dupont Circle, Mount Pleasant, and Columbia Heights

neighborhoods.

The correlate to where workers live, is where Georgetown

residents work. Fifty-nine percent of Georgetown residents

work within DC, with the highest densities in the central

business district along the K Street corridor and within

Georgetown itself.

amKittnerforGeorgetownBID


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BID Staff:

Joshua Hermias, Lead Author

Joseph Sternlieb, CEO

Jamin Bell, Zeina Davis, Maggie Downing, Sherman

Endnotes

1 Delta Associates and Transwestern (2014). Trendlines2014.

2 Washington DC Economic Partnership (2013). DC


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Gardner, Will Handsfield, Nancy Miyahira, John

Wiebenson, Theodore Williford

Special thanks to Gerry Widdicombe and MatthewWatkins (Downtown DC BID), Kermit Kaleba and John

Kangethe (DC DOES), Kevin Brandt and Danny Filer

(National Park Service), Jenny DeMeo (MRP Realty),

Topher Matthews (Georgetown Metropolitan), Abigail

Jones (Climate Advisers), Bill Potapchuk (Community

Building Institute), John Asadoorian (Asadoorian

Retail Solutions), Barry Greenberg (EastBanc), Wright

Sigmund (Vornado), and Josh Moskowitz (Car2Go).

Design:Fuszion

Development Report2013/2014.

3 Metropolitan Washington Council of Governments (2013).

Round 8.2 Cooperative Forecasting (July 2013).

4 Destination DC (2013), website accessed 12-12-13.

5 National Park Service (2014). IRMA Portal, Park Visitor

Use Statistics.

6 Coburn, Tom (2013). Parked!Oversight Report. Office of

Senator Tom Coburn.

7 National Park Service (2014).

8 U.S. Bureau of Labor Statistics (2014).

9 DC Department of Employment Services (2014), personal

communication.

10 Georgetown University, personal communication (2013).

11 DC Department of Employment Services (2014).

12 Metropolitan Washington Council of Governments (2013).

13 ESRI (2014) Business Analyst Online (BAO).

14 Ibid.

15 Delta Associates and Transwestern (2014).

16 CoStar (2014)

17 Ibid.

18 Ibid.

19 The reported typical floor square footage is aggregated

across all buildings with vacant space, which sums to

421,000 SF. Assuming that 85% of a typical floor square

footage is a reasonable proxy for ground floor area,

0.5(0.85*421,000)=178,925. 178,925/267,000=0.67

20 Cushman and Wakefield (2014), District Retail, May 2014.

21 Washington DC Economic Partnership (2013).

22 Washingtonian Magazine, various issues, 2000-2014.

23 CoStar (2014)

24 Ibid.

25 Ibid.

26 Ibid.

27 Smith Travel Research (2014) and TripAdvisor.com (2014)

28 Smith Travel Research (2014)

29 Ibid.

30 National Park Service (2014).

31 Ibid.

Ph

otoCredit:SamKittnerforGeorgeto

wnBID

32 Captial Bikeshare Trip History Data (2014). Available:

http://www.capitalbikeshare.com/trip-history-data

Additional photo credits:

Page 11 (Clockwise, from top left): EastBanc; MMG

I t t /O t b id H A hit t G t BID


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33 Washington Metropolitan Area Transportation Authority

(2014), personal communication.

34 US Census (2014), ACS Survey Table B25045 and

Georgetown BID.

Investments/Outerbridge Horsey Architects; Georgetown BID;

Dale Overmyer Architects.

Cover panorama and photos: Sam Kittner for the Georgetown BID



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Notes

Unless otherwise noted, Georgetown is defined for statistical

purposes as 2010 DC Census Tracts 1, 2.01, and 2.02. These tracts

cover the area south of Whitehaven Street to the Potomac River.

To the west, the area is bounded by 35th Street until Reservoir Road,

and then by the western border of Georgetown University (which is

This is the second State of Georgetown report undertaken by the

Georgetown BID. The BID intends to publish this report annually, using

data from each volume as benchmarks and monitors of progress

against which the future health of the neighborhood economy will

be measured. The staff welcomes comments and suggestions on how

PhotoCredit:Sam


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included). To the east, the area is bounded by Rock Creek. For a

detailed map, refer to: http://www.census.gov/geo/www/maps/

pl10_map_suite/tract.html.

The Georgetown BID area is comprised of the commercial corridors

along Wisconsin Avenue (between M Street and R Street) and M

Street (between 27th Street and 37th Street, and inclusive of the

commercial areas of Prospect Street) as well as the commercial areas

south of M Street to the Potomac River. For the statistical analysis

in this report, BID staff used a contiguous geo-spatial boundary

derived from GIS shape files available from the DC Office of the

Chief Technology Officer (data.octo.dc.gov).

to improve and expand this report to be most useful to its readers.

Please direct comments to Joshua Hermias, economic development

director, at [email protected].

While all data in this publication was produced by the BID or obtained

from the sources cited, the BID does not guarantee the accuracy of

the data included in this publication; the staff welcomes opportunities

and partnerships to refine available data.

mKittnerforGeorgetownBID


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GEORGETOWN BUSINESS IMPROVEMENT DISTRICT1000 Potomac St., NW |Suite 122Washington, DC 20007T: 202.298.9222 x208 |F: 202.298.9223georgetowndc.com

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State of Georgetown 2014

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