DC Development Report 2020/2021 by WDCEP

DEVELOPMENT REPORT 801 NEW JERSEY AVE NW | DESIGNED BY WDG | DEVELOPED BY WOOD PARTNERS

2020 / 2021 EDITION

In Public-Private Partnership with

The Washington DC Economic Partnership would like to acknowledge our public and private sector board members whose continued financial support and guidance has made the Washington, DC Development Report 2020/2021 Edition possible. PUBLIC SECTOR PARTNERS

OFFICE OF THE CHIEF TECHNOLOGY OFFICER

PRIVATE SECTOR PARTNERS

BOARD MEMBERS EXECUTIVE COMMITTEE

Anitra Androh

John Falcicchio / Co-Chair

Joseph Askew

Director, DC Office of Cable Television, Film, Music & Entertainment (OCTFME)

Jack Boarman

Executive Director, National Building Museum

Deputy Mayor, Office of the Deputy Mayor for Planning and Economic Development

Donna Cooper / Co-Chair Region President, Pepco

Richard Lake / Co-Chair Emeritus

Partner, Nelson Mullins Vice President, Government Relations, Verizon Managing Partner, BKV Group

Steven Boyle

Chief Development Officer, EDENS

Managing Principal, Roadside Development

Jean-Luc Brami

Omar McIntosh / Vice Chair

Anita Butani

Principal, Gelberg Signs

Regional Executive, Senior Vice President, Smoot Construction

Project Executive, HRGM Corporation

Kenneth Brewer / Secretary

President & CEO, Motir Services

Executive Director, H Street Community Development Corporation

Timothy F. Veith / Treasurer

Regional President, United Bank

Olivia Byrne / General Counsel Partner, K&L Gates

Keith J. Sellars / President

Emmanuel Irono

Ernest Chrappah

Director, Department of Consumer & Regulatory Affairs (DCRA)

Brunson Cooper

Managing Director, Corenic Construction Group

Colette Dafoe

DC Office Managing Partner, Nixon Peabody

President & CEO, Washington DC Economic Partnership

Josh Etter

Sybongile Cook / DMPED Representative

Jennifer Eugene

Director of Business Development & Strategy, Office of the Deputy Mayor for Planning and Economic Development

Director, Development, Foulger Pratt Manager, Utility Sales, Washington Gas

Kim Dreux-Kelly

Executive Director, Think Local First

Angie Gates

Dr. Brent Glass

Roslyn Hopkins-Fernandes

Director of Account Management, Major Accounts & Public Sector Markets, UnitedHealthcare

Emmanuel Irono

President & CEO, Motir Services

Stanley Jackson

President & CEO, Anacostia Economic Development Corporation (AEDC)

Caroline Kenney

Managing Director for Public-Private Ventures, Urban Atlantic

W. Wolfgang Lewis

Senior Director, Enterprise Services for the Beltway Region, Comcast Business

Lisa Mallory

CEO, DC Building Industry Association (DCBIA)

Thomas Nida

Executive Vice President, City First Bank

Kristina Noell

Executive Director, Anacostia BID

Greg O'Dell

President and CEO, Events DC

Mike O'Hara

Partner, Bohler DC

Lindsey Parker

Chief Technology Officer, Office of the Chief Technology Officer (OCTO)

William Rich

President, Delta Associates

Tara Scanlon

Partner, Practice Group Leader, Holland & Knight

Shawn Seaman

President, Hoffman & Associates

Joseph Torraca

Vice President of Sales & Business Development, RCN

Andrew Trueblood

Director, DC Office of Planning

Mitch Weintraub

Managing Partner, Cordia Partners

Kristi Whitfield

Director, Department of Small & Local Business Development (DSLBD)

Donna Woodall

Director of Citizenship & Public Affairs, Microsoft

Karima Woods

Commissioner, DC Department of Insurance, Securities and Banking (DISB)

WASHINGTON, DC

DEVELOPMENT REPORT 2020 / 2021 EDITION

801 NEW JERSEY AVENUE DESIGNED BY WDG ARCHITECTURE | DEVELOPED BY WOOD PARTNERS

A publication of the

In partnership with

WDCEP The Washington DC Economic Partnership (WDCEP) is a non-profit, public-private organization whose core purpose is to actively position, promote, and support economic development and business opportunities in Washington, DC. Our mission is to promote DC’s economic and business opportunities and support business retention and attraction activities. Through historical knowledge of the city’s business and economic climate; accurate analytics, data, and research; and community partners and access, WDCEP is the central organization in Washington, DC that connects public and private sectors, neighborhoods, and communities to local, national, and international audiences. WDCEP works with its partners in the city: to facilitate dynamic relationships with technology visionaries, artists, real estate entrepreneurs, non-profits, and global enterprise leaders

based on independent thinking and objective insights. We stay one step ahead of the vibrant and evolving economic landscape by monitoring the pulse of DC’s developers, startups, entrepreneurs, and large and small businesses. WDCEP Real Estate Services • DC Real Estate Search tool (search.wdcep.com) • Development Data (wdcep.co/dcdr) • Local Market Intelligence (wdcep.co/neighborhoods) • Maps (wdcep.co/maps) • Site Location Assistance Learn more at wdcep.com or engage with us @WDCEP.

THE DC DEVELOPMENT REPORT 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 300 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 2020. 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.

DEVELOPMENT OVERVIEW 4 12 14 16

ECONOMIC OVERVIEW DEVELOPMENT OVERVIEW 20 YEARS OF GROWTH MOST ACTIVE DEVELOPERS, ARCHITECTS & CONTRACTORS

DEVELOPMENT SECTOR 21 OFFICE 35 RETAIL 49 RESIDENTIAL 63 HOSPITALITY 75 QUALITY OF LIFE

NEIGHBORHOOD DEVELOPMENT 88 BUZZARD POINT 89 SAINT ELIZABETHS EAST

APPENDIX 92 METHODOLOGY 93 ACKNOWLEDGMENTS

DEVELOPMENT

OVER

ECONOMIC OVERVIEW DEVELOPMENT OVERVIEW MOST ACTIVE

VIEW

ECONOMIC OVERVIEW

By: Jonathan Chambers, Vice President, Delta Associates

U.S. ECONOMIC RECOVERY The COVID-19 pandemic has wreaked havoc on the nation’s economy since spring 2020. In perhaps the most economically volatile year in American history, real GDP plunged by -31.4% in the second quarter, but recovered by 33.1% in the third quarter, closing the year with annual growth of -3.5%—the weakest GDP growth since 1946. Economic growth was initially dragged down by a precipitous decline in economic activity triggered by widespread “stay-at-home” orders related to the COVID-19 pandemic but rebounded during the summer as businesses reopened and new virus cases declined.

growth in the third quarter. Personal consumption, which has been the backbone of the nation’s economic growth over the last decade, was somewhat more stable, falling by -33.2% in the second quarter and rebounding by 41.0% in the third quarter. For all of 2020, personal consumption decreased -3.9%, while business investment decreased -5.3%. The only positive growth sector during the year was federal spending, increasing 4.4%. The pandemic-triggered recession ended the longest economic expansion in U.S. history, but the current focus is the strength of the economic recovery, which has waned in the fall.

Business investment has been on a wild see-saw ride, plunging by -46.6% in the second quarter before recovering to 86.3%

However, the economic fallout and subsequent pace of recovery have been stronger than many economists had expected. Despite

THE DISTRICT’S GDP YEAR-OVER-YEAR GROWTH RATE 8.0% 6.0% 4.0%

3.2%

2.0% 0.0%

-0.9% -2.0%

2008 2009

2010

2011

DC Total

2012

DC Public

Source: Bureau of Economic Analysis, Delta Associates; December 2020. *Q3 2019–Q3 2020 growth..

2013

2014

2015

2016

DC Private

2017

2018

-2.8% -2.9% 2019 2020* U.S. Total

ECONOMIC OVERVIEW

some economic recovery over the summer, it appears that both economic output and employment could hit a ceiling and stabilize at lower levels than they would have remained in the absence of the pandemic. That gap could take several years to close, especially in more vulnerable industry sectors such as leisure/hospitality. Consumer spending was the primary and most consistent driver of economic expansion during the last recovery period but fell precipitously during the initial stages of the pandemic. The good news is that this critical pillar of the economy has bounced back. Although consumer sentiment remains about 20% lower than a year ago as of December, outstanding consumer credit has rapidly expanded over the summer and home and auto sales are booming thanks to lower interest rates. The bad news is that stimulus policies that included checks issued to every household and significantly increased unemployment benefits have long been exhausted in most cases and there is serious concern of the cycle restarting absent additional federal government intervention (which has not been forthcoming as of early December). Economic growth in 2021 and beyond, including whether the ideal “V-shaped” recovery can be sustained, will continue to depend heavily on two factors: 1. The Federal Government and 2. Control of the COVID-19 pandemic (via vaccination and social distancing policy). The former inaction of the federal government in the provision of additional financial relief to residents and businesses last fall threatened to deal a significant blow to the economic recovery. However, as economic conditions worsened Congress finally passed a stimulus package in December, with additional economic assistance likely under the Biden administration. As of mid-December, distribution was underway of highly effective COVID-19 vaccines developed by Pfizer and Moderna, while three other vaccines developed by AstraZeneca/Oxford University, Johnson & Johnson, and Novavax were also contenders for securing emergency FDA approval. Realistically, a slow return to “normal” is unlikely to begin until at least

mid-2021. Even after the vaccines become widely available at pharmacies and supermarkets, the majority of Americans will likely not be inoculated until summer.

DISTRICT OF COLUMBIA ECONOMIC RECOVERY Following a year of renewed economic growth, the Washington metro area economy was upended by the COVID-19 pandemic in March, when most private business in the region came to a virtual standstill. Many area businesses were forced to dramatically reduce the size of their active workforce, to closer match costs to the drop in revenue, although service firms were able to continue operating remotely. While much of the businesses initially affected have reopened or switched to remote operations, there is still a long way to go before the regional economy returns to full output. The decline in local business transactions can be directly traced to pandemic social distancing efforts, including stay-at-home orders in the spring. In April and May, the amount of time that District residents stayed at home increased over 20% compared to January, but the time difference has steadily shrunk to just 16% as of November. Retailers, restaurants, transit stations, and workplaces saw foot traffic reduced by over -60% in April, although the deficit has shrunk to about -50% for retailers/ restaurants and workplaces and -65% for transit stations as of November. The decrease in foot traffic has caused the number of open businesses in the District to decline by -45% as of November compared to January. Total business revenue has also fallen by -44% in the District since February as of December. In the second quarter of 2020, at the onset of the pandemic, total economic output in the District of Columbia plunged at an annual rate of -20.4%. This was significantly better than the national economic nosedive of -31.4%, but well short of the District’s 1.6% annual rate of growth in 2019. Leisure/ Hospitality was hit hardest of all major economic sectors, both in the Washington region and the nation. The sector’s two main

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

ECONOMIC OVERVIEW

UNEMPLOYMENT RATE 15.0%

12.0%

9.0%

6.0%

3.0%

0.0%

2015

2016

2017

District of Columbia

U.S. Boston MSA

2018

2019

Washington MSA

Los Angeles MSA

2020 Chicago MSA

New York MSA

San Francisco MSA

Dallas/Fort-Worth MSA

Source: Bureau of Labor Statistics, Delta Associates; December 2020.

industry components—Arts/Entertainment/Recreation and Accommodation/Food Services—both saw economic output in the District plunge by over -90% in the second quarter. Unsurprisingly, the Federal Government is the only local economic sector that has maintained positive growth through the pandemic. Between Q3 2019 and Q3 2020, the District ‘s GDP declined -0.9%, but this outperformed the national GDP decline of -2.8% over the same period.

PROJECTED JOB GROWTH (THOUSANDS) WASHINGTON MSA TOTAL:

130.0

47.0

150

120

35.0

There is still a great deal of uncertainty on what the “new normal” will even look like when the pandemic is over and the dust settles, in terms of how many businesses will remain, how many jobs will return, and what permanent behavioral and spending patterns will persist in the workplace and at home. The good news is that the Washington metro area remains better positioned than virtually every other region to weather the current economic downturn.

55.0

15.0 30

40.0

25.0

2021

2022

7.0

District of Columbia Source: Delta Associates; December 2020.

Northern Virginia

Suburban Maryland

ECONOMIC OVERVIEW

ANNUAL JOB GROWTH (THOUSANDS) 2020

Education/Health Services

DISTRICT OF COLUMBIA

WASHINGTON MSA

-9.6

-31.2

ANNUAL AVERAGE (2010–2019) U.S.

DISTRICT OF COLUMBIA

WASHINGTON MSA

-1,198.0

2.2

9.0

U.S.

465.9

Federal Government

4.6

9.2

52.0

-0.7

-0.1

3.1

Financial Activities

-2.2

-4.8

-51.0

0.3

1.6

106.2

Information

-2.0

-4.5

-241.0

0.2

-0.5

14.0

-29.4

-83.5

-3,616.0

2.2

8.1

381.9

Professional/Business Services

-8.9

-11.1

-876.0

2.6

10.7

497.8

Retail Trade

-0.8

-6.6

-347.1

0.6

1.8

129.6

0.2

-26.8

-1,298.0

0.6

3.3

14.0

Leisure/Hospitality

State/Local Government other

-4.0

-18.5

-1,570.9

2.0

7.1

613.1

Total

-52.1

-177.8

-9,146.0

9.9

41.0

2,225.6

Source: Bureau of Labor Statistics, Delta Associates; December 2020.

While economic growth during the boom period lagged many high-growth metros in the South and West, the Washington area ranked second in GDP growth and fourth in payroll job growth among the 30 largest metro areas in the nation during the Great Recession. The region again looks to be better prepared than its peers for the gloomy days ahead. As of December 2020, the Washington metro area’s unemployment rate was 5.6%, 300 basis points higher than a year prior, but significantly lower than most every other major metro areas.

WASHINGTON METROPOLITAN AREA’S LABOR MARKET Positive monthly job growth through the summer and fall brought back much of the Washington region’s jobs that were initially lost in the spring, but job growth for all of 2020 remained sharply negative at -177,800. This compares to the all-time low figure of -315,700 for the 12 months ending May 2020. The District accounted for about a quarter of job losses in the region, with 52,100 positions shed in 2020. Unfortunately, the bulk of job losses occurred in lower-wage sectors, including Leisure/Hospitality and Transportation/Utilities. Among large metro areas, Washington remained in the middle in terms of both absolute and employment growth. However,

more regionally, the metro area is outperforming its Northeastern peers by a wide margin, particularly New York and Boston which have seen total employment shrink by over 10%. While no sector of the region’s economy (except Federal Government) has fully recovered from the initial job losses caused by the pandemic, most have recorded at least some positive job growth in recent months. Despite the strong job growth in the summer, there was some deceleration in the fall, and most sectors remained in the red for all of 2020. The Federal Government will continue to provide a strong positive boost to the region’s workforce, which will offset some of the private sector declines. We anticipate that job growth in the rebound will rebound in 2021, with approximately 130,000 net additions through the year. The economic cornerstones of each substate: tech and federal contracting in Northern Virginia, life sciences in Suburban Maryland, and the Federal Government in the District will continue to be well insulated from negative shocks in the period ahead.

Leisure/Hospitality The Washington area’s Leisure/Hospitality sector experienced the largest net loss of jobs in 2020 at -83,500. Although Leisure/ Hospitality has also been the worst performer nationally, the Washington region has a relatively high exposure to shocks in the sector. The District is one of the top 10 tourist destinations

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

ECONOMIC OVERVIEW

in the country and the metro area boasts the nation’s largest concentration of hospitality headquarters. Many large local hotel properties have had to wind down operations or shutter entirely, including the Washington Four Seasons and Hay-Adams Hotel in the District. Although leisure travel picked up nationally through the summer, economically lucrative business travel has continued to be virtually nonexistent. In addition, targeted self-quarantine restrictions have placed a damper on travel to the region. Tourist destinations such as museums, stadiums, parks, and theaters were prohibited from opening or required to operate at very low capacity. Restaurants in the region (particularly in the District and Maryland) that were forced to close their seating areas for months during the spring, were allowed to re-open in the summer with very limited indoor seating or outdoor dining only. Many restaurants and bars have attempted to adapt to the restrictions with new or enhanced carry-out and delivery options. In response to a local rise in COVID-19 cases, new restrictions lowering indoor dining capacity from 50% to 25% were put in place in early December.

Federal Government Unlike every other economic sector, the federal government has maintained positive employment growth through most of the pandemic, as expected. In fact, the 4,900 positions added in August was the highest monthly total in just over 10 years. However, monthly job growth trended slightly negative in the fall, as temporary census workers left the workforce. Nevertheless, for all of 2020 the Federal Government sector has the highest 12-month employment tally at 9,200. The strong performance in the sector is obviously good news for the Washington metro area as the federal government is the region’s largest employer and economic bread and butter, despite recent diversification efforts.

A new presidential administration and Congress is mostly good news for the Washington region heading into 2021, especially in the midst of the current pandemic. A new set of spending priorities, initiatives, and new residents at the beginning of a new administration provides a boost to the region’s economy. With Democratic in control of both the House and the Senate (the latter by a tie-breaker), the region has likely avoided being in the midst of a political tug-of-war that could have resulted in budget sequestration, debt ceiling battles, government shutdowns and even mass layoffs.

Professional and Business Services The Professional/Business Services sector was the strongest performing sector in the last economic cycle and we expect that trend to continue in the current recovery. Net job growth in the sector in 2020 was -11,000, but we expect growth to quickly turn positive in 2021. Demand for services remains high and the white-collar office using nature of the sector has allowed most firms to continue operating remotely. The sector will bounce back much quicker than others and continue to be the primary private job creation source in the region in the long term. The tech industry has ballooned in the Washington region in recent years, primarily in Northern Virginia, but also in the District and Suburban Maryland. Amazon’s growing HQ2 presence in Arlington County is the obvious regional juggernaut, but many other tech companies have planted stakes or expanded in the region in 2020 including NGP VAN and EveryAction in the District and Microsoft in Northern Virginia. Nationally, the tech industry has been largely insulated from the negative economic effects of the pandemic, and some industry sectors such as videoconferencing and cloud services has seen demand swell. However, not every business is immune. Commercial clients have shrunk IT budgets, which has weighed on tech revenue. Smaller, undercapitalized companies (particularly startups) have been especially vulnerable to cash-flow challenges. In addition, IT companies have to contend with the same supply chain, travel, and workforce disruptions as every other industry.

ECONOMIC OVERVIEW POPULATION GROWTH Retail Trade Job growth in the beleaguered Retail Trade sector remains in the red, but the sector has experienced a remarkably strong resurgence in recent months, especially compared to most other sectors. Net employment growth in 2020 was -6,600 in the metro area and -700 in the District. This was a dramatic improvement from the -31,900 (metro area) and -2,700 (District) 12-month job growth figures recorded in May. Many nationwide and regional retailers have been repositioning for survival amid online shopping by belt-tightening, closing low-performing stores, and increasing efficiency overall, so they happened to be better situated in advance of the pandemic compared to businesses in other sectors. The grocery store industry has been a major bright spot in the sector as most food retailers have recorded very strong sales through the pandemic and have accordingly increased their workforces to meet demand. The COVID-19 recession has unfortunately claimed multiple victims in the sector, particularly higher-end national chains. Most recently IT’SUGAR, Tailored Brands (Jos. A. Bank/ Men’s Wearhouse), and Lord & Taylor have declared bankruptcy.

The District’s population grew by more than 3,000 or 0.5% in 2019 to 705,749, extending its positive growth streak to 19 straight years. Population growth in the District was due to a net natural increase of about 3,800 and international migration of approximately 2,600. However, net domestic migration remained negative at approximately 2,200. The District’s median age, which has been steadily but very slowly trending upwards for nearly a decade, accelerated in 2019 to 34.3. Younger households, especially those seeking to buy homes, have been increasingly priced out of the District in recent years. The COVID-19 pandemic has triggered unplanned relocations nationwide for several reasons including perceived safety, school closures, and loss of employment. One of the purported relocation trends that has dominated headlines since March is a supposed mass migration from large cities and dense urban areas to more suburban and rural areas. With the majority of white-collar workers working remotely from home, square footage has become more important while proximity to the workplace has become less important. While much of the discussion is based on speculation and anecdotal evidence, there has been some data that would indicate the trend could be existent at some level in certain areas.

WASHINGTON METRO CRE INVESTMENT VOLUME (2019 vs. 2020) Office Industrial Retail Apartment Land/Dev. Site -100%

-80%

-60%

-40%

-20%

Source: Real Capital Analytics, Delta Associates; December 2020.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

ECONOMIC OVERVIEW

any major city in the nation (according to C2ER’s Cost of Living Index), the data is not surprising. That said, comprehensive, hard evidence of any migration still won’t be available until Census population figures are released in 2021.

According to a Pew Research Center survey conducted in June, due to the pandemic: 3% of Americans have relocated, 6% had someone move into their household, and 14% know someone who relocated. Note that this survey does not identify the geographic origin or destination of those who moved. Many people have been forced to relocate within the same community for economic reasons, despite a pause in evictions in most states. The surging housing market—one of the few economic components that has thrived through most of the pandemic—has also been interpreted as evidence of a wave of pandemic-related relocations, but rock-bottom interest rates likely play a major role as well.

Given that the District of Columbia is a coastal city with a high cost of living, there has been speculation on whether the city-tosuburbs trend has manifested here. According to HireaHelper data, this might in fact be the case. The District experienced 58% more move-outs than move-ins between March and June. Interestingly, Alexandria and Arlington County in Northern Virginia experienced an even greater discrepancy at 63% and 78%, respectively.

Data from moving companies do present a more geographically-specific, but still somewhat vague, picture on where out-migrations may be occurring. Two cities in particular, New York and San Francisco, seem to be epicenters of this trend.

MLS data on regional home sales (primarily resales) between March 2020 and October 2020 compared to the same period in 2019 seems to mostly confirm this trend. Home sales during the period in the urban core of the District, Arlington, and Alexandria, as well as the Inner Suburban Ring, were less than 1% higher than a year prior. Meanwhile in the Outer Suburban Ring and Exurban Ring, sales ballooned 11.8% and 20.8%, respectively. It remains to be seen how this trend will play out in the long-term, especially as the pandemic abates and area residents return to the workplace.

According to HireAHelper’s records of its clients, over 80% more people sought help to move out of a home in San Francisco and New York than to move in between mid-March and the end of June. Given that New York City and San Francisco have the highest and third-highest costs of living of

20 THE DISTRICT’S CHANGE IN BUSINESS REVENUE SINCE JANUARY 2020 0 -20

-33% -41% -43% -44%

-40 -60 -80

-88%

-100 February

March

April

May

Total (All Businesses)

June

July Transportation

Education/Health Services Source: Womply via Economic Tracker, Delta Associates; December 2020.

August

September

October

November December

Professional/Business Services Leisure/Hospitality

ECONOMIC OVERVIEW COMMERCIAL REAL ESTATE INVESTMENT The U.S. commercial real estate investment market has been hammered by the COVID-19 pandemic, but the effect has varied considerably among different property types or geographic locations—a key difference from the Great Recession. The total volume of all commercial real estate properties sold in the U.S. was 32% lower than in 2019. Trade volume is deeply negative year-over-year across all sectors. However, the greatest disparity between property types was in pricing. While prices of warehouse, apartment, and suburban office properties increased 7.4%, 8.5%, and 6.6% on average respectively, CBD office, retail, and hotel prices fell -0.2%, -6.7%, and -6.8%, respectively. CRE investors stepped back to await further guidance and certainty on investment risk. Specifically, the lack of comparable transactions and extremely high uncertainty during the global pandemic has made underwriting assets and tracking pricing trends challenging. This is especially true for certain property

types, particularly office and hotel, that could be in store for potentially major market restructurings. Some opportunistic investors are also waiting for the dust to settle before they swoop in and acquire distressed assets. For offshore investors, the U.S. remains the most attractive location to park their capital, primarily due to the relative stability of the market. The District has not been immune to the greater CRE market struggles, despite the stabilizing presence of the federal government. Total CRE trade volume was down -51% in 2020 compared to 2019. Based on the limited number of transactions, office prices in the District declined -10.5% in 2020, while apartment prices declined -3.3%. It’s also worth noting that for most deals sellers are still realizing positive long-term gains on their investments, the obvious exception being distressed asset sales (which are predicted to increase in coming quarters). Cap rates nationally have budged little from a year ago, except for hotel properties.

THE DISTRICT’S POPULATION GROWTH BY AGE (2018–2019) 5,000

4,128

4,000 3,000

1,911

2,000 1,000

687

0 -1,000

-1,070

-2,000 -3,000

-2,362 Under 18 years

18–24 years

25–39 years

40–64 years

65 years and over

Source: Census Bureau, Delta Associates; December 2020.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT OVERVIEW THE DISTRICT'S DEVELOPMENT GROUNDBREAKINGS (DECEMBER 2020, SF IN MILLIONS)1 15

12.7

14.4

13.4

10.4

10.2 9

10.6

2004

2005

9.8

101 80

4.3 45

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Total SF

PROJECTS

ESTIMATED VALUE ($B)

1,573

216,478,505

$72.0

2001 – 2010

803

109,678,947

$31.0

2011 – 2020

770

106,799,558

$41.1

2011

5,489,253

$2.3

2012

7,848,994

$2.5

2013

11,619,129

$4.8

2014

11,533,842

$4.6

2015

6,224,685

$2.6

2016

12,870,149

$4.5

2017

13,276,702

$5.3

2018

11,236,779

$4.1

2019

13,443,702

$6.0

2020

13,256,323

$4.4

110

20,427,917

$10.3

2021 delivery

9,867,709

$4.8

2022 delivery

8,833,673

$3.8

2023+ delivery

1,726,535

$1.7

Pipeline

444

120,394,407

$37.1

Near Term

197

29,633,149

$8.8

Long Term

247

90,761,258

$28.3

Source: Washington DC Economic Partnership

1. Includes new construction and major renovations.

11.9

6.5 69 41

SUMMARY OF PROJECTS (DECEMBER 2020)

Under Construction

11.8

4.3

No. of Projects

Completed

12.0 10.5

10.2

7.5

10.5

13.9

2017

2018

2019

2020

DEVELOPMENT OVERVIEW

PROJECTS COMPLETED (2001–2020) UNITS

ROOMS

¢ Office

# OF PROJECTS

305

65,467,061

SQ. FT.

¢ Retail

478

9,933,705

¢ Residential

785

90,046,217

91,524

¢ Hospitality

141

21,628,536

21,193

¢ Quality of Life

323

24,492,561

216.5 MILLION Square Feet Completed

Total Estimated Value of Projects: $72.0 billion

PROJECTS UNDER CONSTRUCTION (DECEMBER 2020) UNITS

ROOMS

¢ Office

# OF PROJECTS

2,776,597

SQ. FT.

¢ Retail

1,093,947

¢ Residential

12,898,040

13,777

¢ Hospitality

1,910,949

1,414

¢ Quality of Life

1,535,662

UNITS

ROOMS

20.4 MILLION

Square Feet Under Construction

Total Estimated Value of Projects: $10.3 billion

PIPELINE PROJECTS # OF PROJECTS

SQ. FT.

¢ Office

104

31,931,477

¢ Retail

203

4,896,392

¢ Residential

294

59,485,705

66,498

¢ Hospitality

3,515,819

5,867

¢ Quality of Life

5,283,661

120.4 MILLION Square Feet in the Pipeline

Total Estimated Value of Projects: $37.1 billion

Despite the health pandemic more than 4.6 million SF of projects broke ground between March and December 2020. During this time the month of August experienced the most project starts with five, totaling just over one million SF. The vast majority of projects were multifamily residential showing the continued investor interest in this sector.

PROJECTS STARTED DURING COVID-19 (MARCH–DECEMBER 2020)

UNITS

ROOMS

¢ Office

# OF PROJECTS

188,600

SQ. FT.

¢ Retail

183,581

¢ Residential

3,699,686

4,007

¢ Hospitality

418,403

472

¢ Quality of Life

38,215

4.6 MILLION

Square Feet Under Construction

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

YEARS OF GROWTH Over the past 20 years, the District has experienced 216.5 million SF of new development resulting in 65.5 million SF of new and modernized office buildings, 91,500 housing units, 21,200 hotel rooms, and nearly 10 million SF of retail space.1 The two preceding decades have seen similar development levels, with 109.7 million SF of deliveries between 2001–2010 and 106.8 million SF from 2011–2020. Construction in the 2000s was concentrated in the DowntownDC, Mt. Vernon Triangle, Northwest One neighborhood cluster where nearly a quarter of the District’s development took place. However, the 2011–2020 development cycle expanded and intensified into other neighborhoods such as Capitol Riverfront,

Howard University, U Street, Shaw, and Union Market, New York Ave., NE/Ivy City. The neighborhoods that have experienced the largest share of development have also seen the most residential construction during the past 20 years with the Capitol Riverfront (10,770 units), DowntownDC, Mt. Vernon Triangle, Northwest One (10,263), and H Street NE, NoMa, Union Station (7,812) leading the way. As development continues to head east, current hotspots of construction will continue to see growth and new areas such as St. Elizabeths (8 M SF), Anacostia, Barry Farm (4.5 M SF), and Minnesota & Benning (2.6 M SF) anticipated to experience significant investment over the next decade.

SELECT NEIGHBORHOOD DEVELOPMENT (SF IN MILLIONS) COMPLETED 2001–2010

2011–2020

UNDER CONSTRUCTION

PIPELINE

1. DowntownDC, Mt. Vernon Triangle, Northwest One

25.6

13.8

1.6

12.7

2. H Street NE, NoMa, Union Station

8.2

9.1

2.8

15.3

3. Capitol Riverfront

9.2

10.6

2.1

9.9

4. Buzzard Point, Southwest Waterfront, The Wharf

8.0

9.3

2.5

11.6

5. Eckington, North Capitol, Rhode Island Ave., NE/Brentwood

1.6

4.0

1.7

11.2

6. Union Market, New York Ave., NE/Ivy City

0.9

3.8

1.5

6.3

7. Capitol Hill

1.3

2.7

0.1

5.8

8. Congress Heights/St. Elizabeths

0.6

1.9

0.3

8.0

9. Anacostia, Barry Farm

0.9

0.2

4.5

10. Minnesota & Benning

0.6

0.4

0.0

2.6

NEIGHBORHOOD(S)*

*Boundaries are based on the Office of Planning's Neighborhood Clusters. Names are based on WDCEP's Neighborhood Profiles and Office of Planning's Neighborhood Clusters. 1. Includes major renovations

YEARS OF GROWTH

COMPLETED DEVELOPMENT PROJECTS (2001–2010)

TOTAL SF ■ n/a ■ < 2.5 M SF ■ 2.5–5 M SF ■ 5–10 M SF ■ > 10 M SF

DEVELOPMENT PROJECTS UNDER CONSTRUCTION (DECEMBER 2020)

TOTAL SF

■ n/a ■ < 500,000 SF ■ 500,000–1 M SF ■ 1 M–2 M SF ■ > 2 M SF

COMPLETED DEVELOPMENT PROJECTS (2011–2021)

TOTAL SF n/a < 2.5 M SF 2.5–5 M SF 5–10 M SF > 10 M SF

■ ■ ■ ■ ■

DEVELOPMENT PROJECTS IN THE PIPELINE (DECEMBER 2020)

TOTAL SF ■ n/a ■ < 2.5 M SF ■ 2.5–5 M SF ■ 5–10 M SF ■ > 10 M SF

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT OVERVIEW The figures below list the developers, architects, and contractors that have been the most active in contributing to DC’s development activity since 2015.

¢ Completed ¢ Under Construction ¢ Pipeline

MOST ACTIVE DEVELOPERS SINCE 2015 (# OF PROJECTS)4 JBG Smith1

13 31

Douglas Development Corporation

6 26

Brookfield Properties

11 1

11 23

WC Smith

5 19

MRP Realty

6 17

If measured by square feet the most active developers include JBG Smith (11.0M SF), Urban Atlantic (10.3M SF), Brookfield Properties (10.0M SF), Akridge (6.9M SF), and MRP Realty (6.5M SF).

MOST ACTIVE ARCHITECTS SINCE 2015 (# OF PROJECTS)4 Bonstra | Haresign Architects

21 43

Shalom Baranes Associates

13 Torti Gallas + Partners3

16 35

15 35

WDG Architecture

22 Hickok Cole

7 34

12 33

Eric Colbert & Associates

If measured by square feet the most active architects include Shalom Baranes Associates (18.4M SF), WDG Architecture (13.5M SF), Perkins Eastman DC (13.2M SF), Torti Gallas + Partners (12.2M SF), and SK+I Architectural Design Group (11.6M SF).

MOST ACTIVE GENERAL CONTRACTORS SINCE 2015 (# OF PROJECTS) 4 Clark Construction Group

4 46

MCN Build

3 30

James G. Davis Construction Co.

4 24

Gilbane Building Company

16 Hamel Builders

4 22

If measured by square feet the most active contractors include Clark Construction Group (15.5M SF), Balfour Beatty (6.9M SF), Donohoe Construction (6.8M SF), James Davis Construction Corporation (5.6M SF), and CBG Building Company (5.5M SF).

1. Includes projects developed as The JBG Companies. 2. Includes projects developed as Forest City Washington. 3. Includes Torti Gallas Urban projects 4. Projects completed since January 2015, under construction or in the pipeline as of December 2020 (excludes government agencies and colleges/universities). Only companies with 10 or more projects since 2015 are included in SF calculations.

Architecture. Planning. Interiors. AC HOTEL

BOATHOUSE

2100 L

PARC RIVERSIDE II

801 NEW JERSEY

1331 MARYLAND

www.wdgarch.com

Washington DC

Dallas TX

DEVELO

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BY SECTOR OFFICE RETAIL RESIDENTIAL HOSPITALITY QUALITY OF LIFE

Image courtesy of Roadside Development

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OFFICE DEVELOPMENT IN WASHINGTON, DC

Image courtesy of Brookfield

By: Jonathan Chambers, Vice President, Delta Associates

While the long-term nature of leases in the office sector have provided better protection from the COVID-19 shock compared to other sectors such as hospitality and multifamily, it has not escaped unscathed.

OFFICE INVENTORY 1

NET ABSORPTION 1

DIRECT VACANCY RATE 1

SQUARE FEET (Q4 2020)

SQUARE FEET (2020)

(Q4 2020)

111.1 M

430 K

Office vacancy has climbed virtually across the board nationwide and rent growth has turned negative, yet the full impact of the economic dip on the office market remains in flux as the pandemic persists. The current damper in office demand will likely continue in the short-term as most tenants are unlikely to move forward with major moves or expansions until they can

AVERAGE FACE RENT 1

13.9%

$56.69

PER SQUARE FOOT (Q4 2020)

definitively assess their future space needs in the post-COVID world. Renewals and subleases have dominated since the start of the pandemic, while new leases have dwindled. Nationwide, the inventory of sublease space has increased by at least 25% through the year. In the District, sublease space increased by about 20% since February according to Transwestern data.

GROWTH OF OFFICE-USING EMPLOYMENT SECTORS IN THE DISTRICT (2010–2020) TOTAL:

8,300

-600

5,000

-4,900

-1,400

5,600

4,700

-1,100

700

7,100

-9,200

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

8,000 6,000 4,000 2,000 0 -2,000 -4,000 -6,000 -8,000 -10,000

Federal Government

Financial Activities

Source: BLS, Delta Associates; February 2021.

1. REIS, Delta Associates; February 2021 (does not include owner-occupied buildings)

Information

Professional & Business Services

State/Local Government

OFFICE DEVELOPMENT

The District's office market had a solid year of growth in 2019, but the pandemic-triggered recession brought a halt to positive momentum in early 2020. On the surface, net absorption for 2020 remained positive at 430,000 SF, but this figure includes nearly one million SF of pre-leased new construction space that delivered during the year. Removing pre-leased space that delivered in 2020, net absorption totaled -745,000 SF. Office vacancy in the District has steadily trended upward over the year from 12.7% in Q4 2019 to a new record high of 13.9% in Q4 2020. Class A vacancy has also increased from a rate of 13.1% in Q4 2019 to 13.9% as of Q4 2020.

The pandemic’s effect on office asking rents has been adverse but minimal. Average asking rent growth in the District in 2020 was 0.3%. There have also been isolated stories of property owners slashing rents to fill large blocks of vacant space. Lease concessions have skyrocketed, with the average tenant improvement (TI) package for new deals reaching triple digits for the first time in history. TI allowances for new first-generation space have climbed even higher as developers seek to quickly stabilize their assets. Meanwhile, lease terms for new deals have fallen over the past year by roughly 10% to 5.9 years on average— the lowest in nearly a decade. These generous terms could end up weighing on property valuations over the longer term, even in the unlikely event that teleworking doesn’t markedly affect demand.

DISTRICT OFFICE LEASING CONCESSIONS METRICS (CLASS A/B/C BUILDINGS) $102.50

$100.00

8.0

7.0

5.9

$80.00 5.0

4.0

$ PER SQ. FT.

TIME (MONTHS/YEARS)

6.0

3.7

3.0 $60.00 2.0

1.0

0.0 Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Avg. Months of Free Rent

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Avg. Lease Term (years)

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Avg. Tenant Improvement Package/SF

Source: REIS, Delta Associates; February 2021.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

OFFICE DEVELOPMENT

Unlike its suburban neighbors (where most construction has been for pre-leased space), there has been a lot of speculative construction in the District for the greater part of a decade. While a little over two million SF of space delivered over the past year, there is still another 2.8 million SF of space currently being constructed or under extensive renovation/ rebuild. We anticipate that the construction boom has come to a grinding halt, with very few (if any) speculative groundbreakings for at least the duration of the pandemic. With the exception of the Federal Government, job growth among the primary office-using employment sectors have plunged in the District, including the lucrative bread and butter Professional & Business Services sector. The good news is that none of these sectors have been among the worst performers, and all have regained a significant share of the lost positions. Unfortunately for office owners, the bulk of the workforce at most of these tenants are working remotely as their space sits under-utilized. In the District only about one-quarter of workers continue to work on-site.2

If a significant number of current office tenants decide to commit to a telework-heavy operational model, this could heavily crater office demand and trigger a long-term depression in the market. However, there has been no hard evidence of such a major structural change being imminent. None of the largest tenants in the District have yet committed to shedding most or all their physical office presence and pivot to remote operations, although a handful in the suburbs have, as well as smaller tenants in the District. Still, roughly a third of employers in the metro area plan to shift at least a portion of their workforce to permanent telework after the pandemic is over, and more than 80% of employers plan to allow for greater telework flexibility, according to the Capital COVID-19 Snapshot. If employers do follow through with plans to shift workers offsite, it will likely be a slow, gradual change, especially for tenants locked into long-term leases or occupying their own space. Natural demand generated by economic growth will also offset some of the demand deficit. It is also worth noting that dedicated office space provides value to both employers and workers that extend beyond simple productivity measures.

NET ABSORPTION BY QUARTER (2020) TOTAL:

1,364,000

-620,000

1,196,000

-349,000

1,500,000

SQUARE FEET

1,200,000

372,000

900,000

99,000

600,000

468,000

893,000

749,000

300,000

180,000

-125,000 -121,000

-300,000

-21,000

-317,000

-374,000

-600,000

-212,000

-900,000 Q1 2020 District of Columbia

Q2 2020

Q3 2020 Suburban MD

Q4 2020 Northern VA

Source: Delta Associates; February 2021. 2. Capital COVID-19 Snapshot: Safe Return to Work survey sponsored by the Metropolitan Washington Council of Governments (MWCOG) and Greater Washington Partnership, August 2020.

OFFICE DEVELOPMENT

Regardless of future teleworking trends, the pandemic is prompting office developers, owners, managers, and tenants to rethink how they provide, manage, and consume space. In the near-term, the pandemic will likely lead lease agreements and office contracts to incorporate a reassessment of liability under emergency circumstances. In addition, long-term contingency plans will need to be more clearly defined by building managers, who are already, promoting safe and comfortable environments through a variety of measures such as temperature checks, motionsensing hand sanitizer stations, HVAC/air filtration upgrades, operable exterior windows, mandatory mask policies, ultraviolet lighting, elevator and building circulation controls, and robust and frequent cleaning/disinfecting schedules.

Tenants may reconsider densification and open-work spaces, although open floorplans, which foster in-person interaction and collaboration—a key advantage of the physical office environment—will likely persist. The rapid expansion of coworking firms in the Washington region has likely come to an end. Even prior to the pandemic there was concern over the risk that the coworking industry brought to office investors, especially since the industry has not yet proven how well it could weather an economic recession. So far it already appears that these fears were at least partially valid as leasing activity has not only dried up (in concert with the overall market trend), but tenants have been actively reducing their footprints across the nation.

TOP NEW OFFICE LEASES (2020) TENANT

LOCATION

DC Government (Dept. of General Services)

SUBMARKET

322 40 St., NE

River East (Minnesota & Benning)

SQ. FT.

INDUSTRY

TIMEFRAME

250,000

Local Government

Q2 2020

Wiley Rein LLP

2050 M St., NW

Central Business District

166,000

Legal

Q2 2020

National Endowment for Democracy

1201 Pennsyvania Ave., NW

East End

82,000

Non-Governmental Org.

Q2 2020

Wells Fargo

1700 K St., NW

Central Business District

69,000

Finance

Q1 2020

American Trucking Association

80 M St., SE

Capitol Riverfront

60,000

Trade Assoc.

Q1 2020

Mintz

701 Pennsylvania Ave., NW

East End

57,000

Legal

Q4 2020

DC Government (Dept. of Employment Services-Labor Standards Bureau)

400 Virginia Ave., SW

Southwest

56,400

Local Government

Q3 2020

DC Government (Dept. of Housing and Community Dev.)

1909 Martin Luther King Jr. Ave., SE

Q2 2020

River East (Anacostia)

55,000

Local Government

McGuireWoods

888 16 St., NW

Central Business District

50,600

Legal

Q1 2020

Morning Consult

1025 F St., NW

East End

49,000

Tech

Q4 2020

Texas A&M University School of Government Public Sevice

1620 L St., NW

Central Business District

47,400

Education

Q3 2020

GSA (Treasury Inspector General for Tax Admin.)

370 L'Enfant Plz., SW

Southwest

38,000

Federal Government

Q2 2020

The Atlantic

610 Water St., SW

Southwest

35,000

Information

Q4 2020

EveryAction

655 15 St., NW

East End

35,000

Tech

Q1 2020

NGP VAN Inc.

655 15th St., NW

East End

34,000

Tech

Q2 2020

Central Business District

33,900

Legal

Q2 2020

Southwest

31,400

Advocacy/Lobbying

Q2 2020

East End

28,000

Advocacy/Lobbying

Q1 2020

NoMa

25,000

CRE/Architecture

Q2 2020

Axinn, Veltrop & Harkrider LLP

1901 L St., NW

Media Matters for America

800 Maine Ave., SW

NAEYC

1401 H St., NW

Hickok Cole

301 N St., NE

Source: Delta Associates; February 2021.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

OFFICE DEVELOPMENT

Coworking industry giant WeWork was wrestling with its own financial challenges before the year even began, and the pandemic has only compounded its troubles. WeWork is the largest private sector tenant in many coastal gateway cities, including the District, where it occupies over one million SF. In 2020 WeWork placed 56,000 SF of its 100,000 SF Dupont Circle space on the market for sublease and closed three of its oldest locations in the District totaling about 100,000 SF of space. Another three locations in the District totaling over 200,000 SF are slated for closure in 2021. WeWork’s sudden reversal in fortunes hits the District particularly hard in comparison to its suburban neighbors, as WeWork has accounted for more net positive office absorption in the city over the last few years than any other private sector tenant, by a wide margin. WeWork isn’t alone in reducing its footprint, Regus, MakeOffices, and spaces have all closed locations in the District or completely shut down operations altogether.

at weathering a downturn, thanks primarily to its heavy reliance on federal tenants, which are unlikely to drastically decrease their physical presence in the city, whether due to large-scale teleworking or agency relocations to other regions. The longstanding uncertainty surrounded the federal sector has evaporated somewhat following the election of President Joe Biden and unified party control of Congress. The results of the recent elections will almost certainly have an outsized impact on future federal spending, and indirectly the local office market. The growing GSA backlog of leases in extension or holdover status, the large-scale shift from leased space to federally-owned properties, the recent trend of moving federal agencies to other regions, and historically weak federal hiring, could all be resolved or reversed in the District’s favor with a new Democratic government in power.

Despite the somewhat bleak and uncertain overall outlook, the District’s office market is better prepared than most

THE DISTRICT’S AVAILABLE OFFICE SPACE FOR SUBLET (DECEMBER 2019–DECEMBER 2020) 2.0

1.9

1.8

MILLIONS OF SQ.FT.

1.7

1.6

1.5

1.4

1.3

1.2

1.1

1.0 Dec-19

Jan-20

Feb-20

Mar-20

Source: Transwestern, Delta Associates; December 2020.

Apr-20

May-20

Jun-20

July-20

Aug-20

Sept-20

Oct-20

Nov-20

Dec-20

OFFICE DEVELOPMENT OFFICE DEVELOPMENT

GROUNDBREAKINGS

(DECEMBER 2020, OFFICE SF, IN MILLIONS)

PRIVATE 4.9 0.4 5.3

2004 2005

2005

2006

3.8 0.4 4.1

2006

4.7 4.7

2007

3.0

2008

0.9

2009

2012

0.4 1.7

2011

1.3

0.4 1.7

2012

3.0

2015

1.8

0.9 3.9

0.7 2.4 2.7 0.3 3.0

2017

1.2 1.2

0.8

2.0 0.9

2015

0.6 0.1 0.7

2021*

2.1 4.1

1.0 1.9 2.0 0.3 2.2 1.3

0.8 2.1 2.9 0.3 3.1 3.4

2020

2022*

0.7 3.4

1.0 1.8

2019

0.3 0.1 0.3

0.4 6.0

0.8 2.0

2018

1.8 0.2 2.0

2019

1.2 3.2 2.7

1.2

2014

2017

1.5 5.9

0.6 4.3 5.6

2016

2.6 0.2 2.8

2018

2.0

2013

2014

2016

4.4 3.7

2010

1.3

GOVT

3.6 3.6

2008

1.1 0.2 1.2

2013

PRIVATE

2009

2.8 3.4

2011

2020

0.5 3.5

PROJECTED GOVT

1.2 3.2

2007

1.1 2.0

0.7

2010

PRIVATE 2.0

2004

1.4 4.2

2.8

COMPLETED

GOVT

0.5 3.9

1.6 0.2 1.8 1.3 0.2 1.4 1.2 0.1 1.2

*projections based on targeted delivery dates of projects under construction as of December 2020

OFFICE DEVELOPMENT (DECEMBER 2020) PROJECTS

COMPLETED (SINCE 2001) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

OFFICE SF

305 10 8 9 20 11 4 19 11 15 18 7

65,467,061 3,408,455 1,987,719 1,818,359 4,127,439 1,925,674 651,500 2,211,006 2,125,785 3,139,202 3,897,360 1,766,846

20 14 5 1

2,776,597 1,427,435 1,217,162 132,000

PIPELINE NEAR TERM LONG TERM

104 41 63

31,931,477 5,859,577 26,071,900

TOTAL

429

100,175,135

UNDER CONSTRUCTION 2021 DELIVERY 2022 DELIVERY 2023+ DELIVERY

80 M Street, SE addition

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

H UT

SO TA KO DA

UT E AV

14TH ST.

E AV

ROCK CREEK PARK

GEORGIA AVE

TIC EC NN

TT SE U

CH A

SS A

U ST.

VE DA

LAN

E IS

VE KA

OR GE

W AS HI

G TO N

M E

AL RI O M

VIRGINIA 66

29 2

H ST.

UNION STATION

24 E. CAPITOL ST.

NATIONAL MALL

VIRGINIA

U.S. CAPITOL

20 9

FORT DUPONT PARK

M ST.

NATIONALS PARK

30 25

395

LVA N

AV E

JR. AV E.

1 M

M NATIONAL AIRPORT

Alexandria

M A RTIN LUTHER KING

OFFICE

Y W PK

4 3 21 8 6 5 7 12 19 18

23 E

A AV

BAM

ALA

All project locations are approximate.

DEVELOPMENT PIPELINE PROJECT

WARD

LOCATION

DEVELOPER(S)

OFFICE SF

EST. VALUE ($M) 1

DELIVERY2

TOP OFFICE PROJECTS COMPLETED (Q4 2019–Q4 2020) 1

Sentinel Square III

45 L St., NE

Trammell Crow Company

545,000

$250

250 Massachusetts Avenue

250 Massachusetts Ave., NW

Property Group Partners

507,764

$275

2050 M Street

2050 M St., NW

Tishman Speyer

353,200

1900 N

1900 N St., NW

JBG Smith

259,000

1901 L Street

1901 L St., NW

The Meridian Group

202,000

2100 L Street

2100 L St., NW

Akridge / Argos Group

182,000

888 16th Street

888 16 St., NW

Trammell Crow Company / Meadow Partners

150,000

1050 17th Street

1050 17th St., NW

The Lenkin Company

148,610

Q2 20

1 M Street

1 M St., SE

Monument Realty

129,536

Q1 20

Shops at Penn Branch (Phase I)

3200 Pennsylvania Ave., SE

Jair Lynch Real Estate Partners

Q2 20 Q4 19 Q1 20

$230

Q4 19 Q1 20

$47

Q3 20 Q4 19

17,000

$25

Q4 19

TOP OFFICE PROJECTS UNDER CONSTRUCTION 11

The Wharf (Phase II)

Southwest Waterfront

Hoffman & Associates / Madison Marquette

547,000

$1,150

Q3 22

2100 Pennsylvania Avenue

2100 Pennsylvania Ave., NW

Boston Properties / George Washington University

423,562

$360

Q2 22

1275 New Jersey Avenue

1275 New Jersey Ave., SE

Brookfield Properties

296,176

Signal House

1255 Union St., NE

Carr Properties

214,000

$135

Q1 21

250 M at Canal Park

250 M St., SE

WC Smith

180,600

$133

Q1 21

H. Carl Moultrie Courthouse

500 Indiana Ave., NW

DC Superior Court

176,000

$97

2021

City Ridge

3900 Wisconsin Ave., NW

Roadside

170,000

$715

Q2 22

699 14th Street

699 14th St., NW

Lincoln Property Company / Cara Real Estate

149,000

Q1 21

The Milken Center for Advancing the American Dream

1501–1505 Pennsylvania Ave., NW & 730 15th St., NW

Akridge / Milken Family Foundation

132,000

2024

80 M Street

80 M St., SE

Columbia Property Trust

112,000

Q4 21

TOP OFFICE PROJECTS IN THE PIPELINE 21

2100 M Street

2100 M St., NW

Meadow Partners / Network Realty Partners

369,097

600 5th Street

600 5th St., NW

Stonebridge Associates / Rockefeller Group

355,000

$300

Saint Elizabeths East (Parcel 17)

Saint Elizabeths East Campus

Redbrick LMD / Gragg Cardona Partners

267,000

$170

2023

Northeast Heights

Minnesota Ave. & Benning Rd., NE

Cedar Realty Trust / Trammell Crow Company

265,000

$420

2022–28

Reunion Square (Building 4)

Shannon Place & W St., SE

Four Points / Curtis Development

229,859

5 M Street

5 M St., SW

JBG Smith

226,132

Cannon House Office Building Renewal (Ph III)

27 Independence Ave., SE

Architect of the Capitol

206,500

$188

300 7th Street

300 7th St., SW

Jair Lynch Real Estate Partners

203,414

$122

615 H Street

615 H St., NW

Monument Realty

69,000

$55

MLK Gateway II

1909 Martin L King Jr Ave., SE

Menkiti Group

60,000

2022 2025

2023 2022

2022

1) may include non-office components & pipeline values may include additional phases ($ in millions) 2) delivery date may reflect phase I delivery or final phase delivery .

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS Image courtesy of CoStar

WARD 6

1 M STREET

WARD 2

1050 17TH STREET

LOCATION:

1 M Street, SE Monument Realty ARCHITECT(S): HOK CONTRACTOR(S): Lendlease LEED: Gold STATUS: Completed TARGETED DELIVERY: Q2 2020

LOCATION:

DEVELOPER(S):

1050 17th Street, NW The Lenkin Company ARCHITECT(S): Gensler CONTRACTOR(S): Clark Construction Group LEED: Gold STATUS: Completed TARGETED DELIVERY: Q2 2020

SPECS: 1 M Street is an 11-story, 131,000 SF office building with 4,100 SF of ground-floor retail space. It is the new headquarters for the 150-employee National Association of Broadcasters (NAB). NAB purchased the building for $63 million in 2019.

SPECS: 1050 17th Street is a new 12-story, 153,000 SF office building with 4,300 SF

2100 L STREET

Image courtesy of Boston Properties

Photo by Alan Schindler (courtesy of WDG Architecture)

WARD 2

of retail space. The building features a 3,600 SF fitness center, a 4,700 SF rooftop lounge, 200 parking spaces in four below-grade levels, and a "triple-scrubbed" fresh air delivered to each occupied space via a Dedicated Outdoor Air System, exchanging 100% of the air every 55 minutes.

WARD 2

2100 PENNSYLVANIA AVENUE

LOCATION:

2100 L Street, NW Akridge / Argos Group ARCHITECT(S): WDG Architecture / Martinez & Johnson CONTRACTOR(S): James G. Davis Construction Corporation LEED: Platinum STATUS: Completed TARGETED DELIVERY: Q3 2020

LOCATION:

DEVELOPER(S):

SPECS: 2100 L Street is a 10-story, 190,000 SF trophy office building with 8,000 SF of retail space. The building offers floor-to-ceiling glass, a two-story lobby, an art gallery with private outdoor terraces, a penthouse conference center, and an outdoor pocket park.

SPECS: 2100 Pennsylvania Avenue will be an 11-story, 454,000 SF trophy office building with up to 30,000 SF of neighborhood-serving retail. The building will have two wings interconnected by a central atrium space and about 325 parking spaces. WilmerHale is the anchor tenant, leasing about 288,000 SF of office space.

2100 Pennsylvania Avenue, NW Boston Properties / George Washington University ARCHITECT(S): Pelli Clarke Pelli Architects / WDG Architects CONTRACTOR(S): Balfour Beatty LEED: Gold EST. VALUE: $360 million STATUS: Under Construction TARGETED DELIVERY: Q2 2022

DEVELOPMENT HIGHLIGHTS

250 M AT CANAL PARK

Image courtesy of CoStar

Image courtesy of WC Smith

WARD 6

WARD 2

699 14TH STREET

LOCATION:

250 M Street, SE WC Smith ARCHITECT(S): Hickok Cole Architects CONTRACTOR(S): HITT LEED: Silver/Gold EST. VALUE: $133 million STATUS: Under Construction TARGETED DELIVERY: Q1 2021

LOCATION:

DEVELOPER(S):

699 14th Street, NW Lincoln Property Company / Pearlmark Real Estate ARCHITECT(S): Shalom Baranes Associates CONTRACTOR(S): Manhattan Construction Company LEED: Gold STATUS: Under Construction TARGETED DELIVERY: Q1 2021

SPECS: 250 M at Canal Park will be a 189,000 SF Class A office building with 6,700 SF of ground floor retail and 177 parking spaces across three levels of underground parking. It will be the new headquarters for the District Department of Transportation (DDOT) and designed to meet LEED Silver for base building and Gold for tenant improvements.

SPECS: The historic National Bank of Washington building will be restored and renovated, and a new 11-story Class A office building addition will be constructed on the adjacent lot. The entire development will offer 157,000 SF of office space and up to 25,000 SF of retail uses.

Photo by Ron Blunt (courtesy of Hickok Cole)

WARD 2

ANTHEM ROW 700 K & 800 K Streets, NW The Meridian Group ARCHITECT(S): Hickok Cole CONTRACTOR(S): Clark Construction Group LEED: Silver EST. VALUE: $142 million STATUS: Completed TARGETED DELIVERY: Q3 2019

WARD 2

2100 M STREET

LOCATION:

DEVELOPER(S):

SPECS: Anthem Row was the result of an extensive renovation of an existing

SPECS: The redevelopment plan for 2100 M Street calls for a full building renovation and the addition of three floors (87,800 SF) and a penthouse (8,600 SF). The new 388,500 SF office building will offer 19,440 SF (with potential for up to 46,440 SF) of retail space.

office building into a 12-story, 420,000 SF office building with up to 70,000 SF of retail space. The new mixed-use development provides double-height retail space and an enhanced 8th Street pedestrian plaza.

2100 M Street, NW Meadow Partners / Network Realty Partners ARCHITECT(S): Morris Adjmi Architects CONTRACTOR(S): Grunley Construction STATUS: Pipeline (Near Term) TARGETED DELIVERY: 2022

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS

MLK GATEWAY I

Image courtesy of Brookfield

Image courtesy of Menkiti Group

WARD 8

WARD 6

1275 NEW JERSEY AVENUE

LOCATION:

1205–1215 Good Hope Road, SE The Menkiti Group ARCHITECT(S): Cunningham + Quill Architects CONTRACTOR(S): Consigli Construction EST. VALUE: $23 million STATUS: Under Construction TARGETED DELIVERY: Q2 2021

LOCATION:

DEVELOPER(S):

1275 New Jersey Avenue, SE Brookfield Properties ARCHITECT(S): Gensler CONTRACTOR(S): James G. Davis Construction Corporation LEED: Gold STATUS: Under Construction TARGETED DELIVERY: Q4 2021

SPECS: Five DC government-owned parcels are being redeveloped into 20,000 SF of office space (anchored by Enlightened’s new HQ & tech incubator) and approximately 14,000 SF of retail uses. The retail space will be home to a Capital One Café and is also expected to have a sit-down restaurant and other neighborhood-serving tenants.

SPECS: The Yards (Parcel G) is being redeveloped into an 11-story, 310,000 SF office building with 13,400 SF of retail space. The building will have a doublestory ground-level podium with a nine-story, dual-axis tower above. Chemonics International is expected to occupy the entire building (1,200-1,400 employees).

Image courtesy of Four Points, LLC

WARD 8

REUNION SQUARE (BUILDING 4)

WARD 8

SAINT ELIZABETHS EAST (PARCEL 17)

LOCATION:

Shannon Place & W Street, SE Four Points, LLC / Curtis Development ARCHITECT(S): Hickok Cole Architects LEED: Gold STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q2 2023

LOCATION:

DEVELOPER(S):

SPECS: Building 4 is part of the 1.57 million SF Reunion Square development located in Anacostia. It will consist of 236,000 SF of office space, 6,640 SF of retail space, and 241 parking spaces. The DC Department of Health will relocate its headquarters to Building 4.

SPECS: As part of the 15.8-acre Phase I redevelopment of the historic St. Elizabeths East Campus, a new 120,000 SF, six-story office building to be occupied by Whitman-Walker Health and Whitman-Walker Health System will be constructed adjacent to the Congress Heights Metrorail Station. There is the potential for up to 18,000 SF of retail uses in the building. A second 160,000 SF office building, designed by Hickok Cole, with 23,000 SF of retail space is also planned on the site.

Saint Elizabeths East Campus Redbrick LMD / Gragg Cardona Partners / DMPED ARCHITECT(S): Winstanley Architects & Planners LEED: Gold STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q1 2023

DEVELOPMENT HIGHLIGHTS Signal House/Carr Properties, courtesy of Gensler

WARD 6

SENTINEL SQUARE III

WARD 5

SIGNAL HOUSE

LOCATION:

45 L Street, NE Trammell Crow Company ARCHITECT(S): SmithGroup CONTRACTOR(S): Clark Construction Group / Rand Construction LEED: Silver EST. VALUE: $250 million STATUS: Completed TARGETED DELIVERY: Q2 2020

LOCATION:

DEVELOPER(S):

1255 Union Street, NE Carr Properties ARCHITECT(S): Gensler CONTRACTOR(S): John Moriarty & Associates LEED: Gold EST. VALUE: $135 million STATUS: Under Construction TARGETED DELIVERY: Q1 2021

SPECS: The third building of the 1.3 million SF Sentinel Square development is an 11-story, 556,000 SF office building, anchored by the Federal Communications Commission (473,000 SF), with 11,000 SF of retail space. Phases I and II were delivered in 2010 and 2013, respectively.

SPECS: Signal House will be a 10-story, 227,000 SF office building with 12,000 SF of retail space. The building will feature ceiling heights of 11’ 11” (slab-to-slab) and wide column spacing (30’x38’). Signal House is part of the 1.4 million SF mixeduse Market Terminal development located in the Union Market neighborhood.

THE WHARF (PHASE II) Southwest Waterfront Hoffman & Associates / Madison Marquette ARCHITECT(S): ODA Architecture / WDG Architecture / Rafael Vinoly Architects / Morris Adjmi Architects / Studios Architecture / Hollwich Kushner / Perkins Eastman DC / SHoP / S9 Architecture CONTRACTOR(S): Balfour Beatty Construction / Donohoe Construction / DPR Construction / Cianbro LEED: Gold EST. VALUE: $1.2 billion STATUS: Under Construction TARGETED DELIVERY: Q3 2022

Image courtesy of Brookfield

Image courtesy of Hoffman & Associates

WARD 6

THE YARDS (PARCEL F)

LOCATION:

DEVELOPER(S):

SPECS: Phase II of The Wharf will deliver 547,000 SF of office space in three buildings, 95,000 SF of retail space, a 131-room Pendry hotel, 351 residential units (apartments & condos), two below-grade parking garages, a 200+ slip marina, and four acres of public park/open space. Williams & Connolly LLP will be the anchor office tenant.

1st & N Streets, NE Brookfield Properties ARCHITECT(S): Selldorf Architects LEED: Gold STATUS: Pipeline (Near Term) TARGETED DELIVERY: 2023 SPECS: Parcel F will be developed into a nine-story mixed-use building containing approximately 267,500 SF of office space, 22,800 SF of ground-floor retail, an 8,350 SF habitable penthouse, and two levels of underground parking. The building will contain several levels of outdoor terrace/amenity space and have a two-story ground-level podium.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

The Wharf Phase 2

Coming 2022

wharfdc.com

RETAIL DEVELOPMENT IN WASHINGTON, DC

By: Jonathan Chambers, Vice President, Delta Associates

2020 has been a tumultuous year for the District of Columbia’s retail and restaurant market as the COVID-19 pandemic has heavily curtailed demand, with the notable exception of grocery stores. Prior to the pandemic, the retail landscape in the District was robust and recorded strong growth in 2019 into the first quarter of 2020.

2019 TAXABLE RETAIL & RESTAURANT SALES1

RETAIL DELIVERIES IN 20202

DC'S POPULATION GROWTH3

NEW GROCERY STORES4

5.3% INCREASE FROM 2018

SQUARE FEET

2010–2020

SINCE 2010— 7 MORE IN THE PIPELINE

$16.4 B

~665 K

Taxable retail and restaurant sales totaled $16.4 billion in fiscal year (FY) 2019, a solid 6.3% increase over FY 2018. Notably, restaurant sales grew 8.1% in FY 2019 after experiencing a decline in FY 2018, the first time in six years. The District was one of the first jurisdictions in the country to require the closure of retailers and restaurants to customers (in addition to schools, entertainment venues, and hotels) in response to the community spread of COVID-19 beginning in mid-March 2020. Notably, grocery stores and other essential food retailers were exempt from the order. Under District's Phase 2 reopening plan that commenced in June, all restaurants and retailers were allowed to re-open with strict social distancing measures in place, including capacity capped at 50% and a minimum six-foot distance between tables in indoor dining rooms. Bars (where much of the District’s restaurants generate a considerable share of their revenue) were limited to seated guests only six feet apart, with no bartender service. The District’s Phase 2 restrictions remained in place as of December 2020.5 Retailers and restaurants in both the District and around the world have adopted different methods to adapt to the current reality with varying degrees of success. Primarily, restaurants, including those that were dine-in only pre-COVID, swiftly

17.8%

pivoted to delivery and carry-out business models in March and April by leveraging a variety of services and platforms. However, delivery platforms—specifically Grubhub, DoorDash, Uber Eats and Postmates—have exploited the skyrocketing food delivery demand by charging elevated fees and commissions (up to 30% in the spring), which has drastically cut into restaurant profit margins, with some making losses on delivery orders. Typical profit margins for full-service restaurants ranges between three and five percent. In response, the District Council passed legislation, signed into law by Mayor Bowser in May, capping delivery fees at 15% of the bill. The pandemic has been especially tough for independent retailers, many of whom lack sustained capital to lean on in the near-term. Service oriented retailers which require physical interaction, such as barbershops and salons, were forced to shut down for months during the spring. Craft alcohol producers have had to shut down tasting rooms, although some have shifted to direct-to-consumer sales models (which was heavily regulated pre-COVID) and some distilleries augmented their revenue streams by producing hand sanitizer. In sum, approximately 40% of restaurants in the District ceased operations at least temporarily during the early stages of the pandemic, while the remaining 60% saw sales fall by at least

1. Office of the Chief Financial Officer (FY 2021 Proposed Budget & Financial Plan). Year denotes fiscal year (October–September). Taxable retail & restaurant sales include retail, liquor & restaurant sales (categories are based on tax rates and may include other categories). 2. Washington DC Economic Partnership (December 2020, projections based on projects under construction). 3. Census Bureau, Population Division 4. Washington DC Economic Partnership (November 2020) 5. For the most up-to-date information please visit coronavirus.dc.gov/.

RETAIL DEVELOPMENT

SELECT RETAIL AND RESTAURANT OPENINGS DURING COVID-19 (MARCH 2020–DECEMBER 2020) TENANT

LOCATION

NEIGHBORHOOD

Atlas Brew Works

1201 Half St., SE

Capitol Riverfront

Baan Siam

425 I St., NW

Mt. Vernon Triangle

Baker's Daughter

1402 Okie St., NE

Ivy City

Bammy's

301 Water St., SE

Capitol Riverfront

Bar & Lounge 54

1207 19 th St., NW

Dupont Circle

BeauTea

1073 Wisconsin Ave., NW

Georgetown

Brine

1359 H St., NE

H Street

Call Your Mother

3428 O St., NW

Georgetown

Colada Shop

10 Pearl St., SW

Southwest

El Cielo Restaurant

1280 4th St., NE

Union Market

Fight Club

623 Pennsylvania Ave., SE

Capitol Hill

Georgetown Social

2920 M St., NW

Georgetown

Ghostline

2340 Wisconsin Ave., NW

Cathedral Heights

Gypsy Kitchen

1825 14 St., NW

14th Street

KitchenCray

1301 H St., NE

H Street

La Famosa

1300 4th St., SE

Capitol Riverfront

Levain Bakery

3131 M St., NW

Georgetown

Lulu's Winegarden

1940 11th St., NW

U Street

Lupo Pizzeria

1908 14 St., NW

14th & U Streets

Mah-Ze-Dahr Bakery

1201 Half St., SE

Navy Yard

Martha Dear

3110 Mt. Pleasant St., NW

Mount Pleasant

Melange

449 K St., NW

Mt. Vernon Triangle

Menya Hosaki

845 Upshur St., NW

Petworth

Mercy Me

1143 New Hampshire Ave., NW West End

Momo Chicken & Grill

1001 4th St., SW

Southwest

Muchas Gracias

5029 Connecticut Ave., NW

Chevy Chase

Other Half Brewing: DC

1401 Okie St., NE

Ivy City

Oyster Oyster

1440 8 th St., NW

Shaw

Proper 21

2033 K St., NW

Golden Triangle

Pupatella

1801 18 St., NW

Dupont Circle

RASA

485 K St., NW

Mt. Vernon Triangle

Roaming Rooster

1301 U St., NW

14th & U Streets

Rumi’s Kitchen

640 L St., NW

Mt. Vernon Square

Saint-Vincent

3212 Georgia Ave., NW

Petworth/Park View

Shelter

1401 Pennsylvania Ave., SE

Capitol Hill

Shibuya Eatery

2321 18 th St., NW

Adams Morgan

Smokin’ Pig

1208 H St., NE

H Street

Tabla

3227 Georgia Ave., NW

Parkview

Taïm Dupont Circle

1514 Connecticut Ave., NW

Dupont Circle

The Roost

1401 Pennsylvania Ave., SE

Capitol Hill

70% according to ReOpenDC.5 This resulted in net Retail job growth of -3,500 between March and May in the District, and net Leisure/Hospitality job growth (including restaurant positions) of -45,000. Following the Phase 2 re-opening, 2,000 Retail jobs and 12,600 Leisure/Hospitality jobs have returned to the city. Unfortunately, many retailers and restaurants in the District have shut their doors permanently because of the pandemic. In June, the Restaurant Association of Metropolitan Washington predicted that the metro area could lose between 25% and 30% of independently owned restaurants. Notable closures since the beginning of the pandemic include the 14th Street NW location of Matchbox, Momofuku, Post Pub, Eighteenth Street Lounge, Ghibelina, Naf Naf Grill, Firehook Bakery, and Fado Irish Pub. Meanwhile, retailers and restaurants have engaged in intense negotiations with property owners to stay afloat. In October 2020 the District Council passed a law mandating that rent payment plans be available for retail tenants that lease under 6,500 SF during the public health emergency and for one year after. Retail rent collection rates nationally have generally improved from a low of just 57% in May to 80% in September according to Datex Property Solutions. Locally, property owners have been offering deep rent concessions (up to 50%) or deferrals to tenants. Despite the grim situation, a number of new retail leases have commenced since the start of the pandemic, indicating confidence in the long-term prospects of the sector in the District. One of the most notable leases executed was signed by Whole Foods for 40,000 SF at the Parks at Walter Reed mixed-use development in Q4 2019. Additionally, renovations are commencing at the Glover Park Whole Foods which has been shuttered for over three years. Amazon has also committed to occupy about 8,000 SF on 14th Street NW for a retail presence under a yet-to-be-determined brand with a second location on H Street NE.

5. ReOpenDC Advisory Group Recommendations to the Mayor, May 2020 Source: Delta Associates, Yelp, Washington Business Journal, Eater Washington DC; December 2020.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

RETAIL DEVELOPMENT

NOTABLE RETAIL LEASES IN THE DISTRICT (2020) TENANT

PROPERTY ADDRESS

NEIGHBORHOOD

City-State Brewing Co.

705 Edgewood St., NE

Brookland

SIZE (SF)

DATE

13,000

Q1 2020

Love, Makoto

200 Massachusetts Ave., NW

Downtown DC

9,000

Q3 2020

Blu Dot

3333 M St., NW

Georgetown

8,950

Q1 2020

Amazon

1701 14th St., NW

14th & U Streets

8,000

Q1 2020

Lolita Cocina & Tequila Bar

2201 14 St., NW

14 & U Streets

7,200

Q1 2020

Handle19

319 Pennsylvania Ave., SE

Capitol Hill

6,000

Q2 2020

Ilili

100 District Sq., SW

Southwest Waterfront

5,000

Q1 2020

Capital One Café

1909 Martin Luther King Jr. Ave, SE

Anacostia

3,700

Q3 2020

Bistrow du Jour

99 District Sq., SW

Southwest Waterfront

1,770

Q4 2020

Source: Bisnow, Eater, Washington Business Journal, Delta Associates; December 2020.

Across the metro region, no single community has suffered more from the pandemic’s effects on brick-and-mortar retail than the urban village of Friendship Heights on the DistrictMaryland border. Once billed as the “Rodeo Drive of the East” and boasting one of the wealthiest demographics in the nation, the mixed-use hub had struggled to retain retailers even before the pandemic arrived. Over the last few years, luxury boutique tenants in Friendship Heights such as Saks Jandel, Gucci, Bulgari, Louis Vuitton, Dior, and Cartier closed altogether or moved to CityCenterDC. However, the pandemic ushered in a wave of larger tenant closures, such as P.F. Chang’s, Lord & Taylor, Neiman Marcus, and Brooks Brothers. Notably, nearly all the recent closures are the product of a national crisis among luxury brick and mortar retailers. Elsewhere in the District, Brook Brothers closed its Georgetown store, J. Crew closed in Logan Circle, and Jos A. Bank closed in Union Station. While consumer spending is still far below pre-pandemic levels, it has improved dramatically since the spring. As of December, total spending by District residents (as measured by credit card transaction volume tracked by Affinity Solutions) was down -25% compared to January. This includes a -57% decrease in Restaurant/Hotel spending, -63% decrease in

6. Office of the Chief Financial Officer September 2020 District of Columbia Revised Revenue Estimates, December 2020.

Entertainment/Recreation spending, and -66% decrease in Transportation spending. Notably, spending for all retail purchases was only down -2% compared to January, thanks primarily to a transition to online shopping. In addition, grocery expenditures have actually increased in the District through the pandemic, with sales ballooning 40% in March compared to January and up 7% in December. The increase in sales came despite a jump in prices for produce triggered by supply constraints. The near future looks somewhat bleak for retailers and restaurateurs in the District. While we expect demand to return eventually, the timing remains very uncertain. Even after vaccine distribution commences it will likely be months before shoppers feel entirely safe again in stores. In the immediate future, the struggle for survival of restaurants in the District and other temperate climate cities will only intensify as cold weather arrives, removing the option of outdoor seating. The Office of the Chief Financial Officer reported a sales tax revenue declined of -23.5% in FY 2020 (including a -46% decline in hotel and restaurant tax receipts) and gross sales tax revenue in FY 2021 is forecasted to decline -9% before rebounding by 27% in FY 2022.6

RETAIL DEVELOPMENT

THE DISTRICT’S CHANGE IN CONSUMER SPENDING SINCE JANUARY 2020 40% 30% 20%

10% 0%

Dec

Feb

Dec

Feb

Dec

Dec Feb

-10% -20%

Dec

Feb

-2%

-22%

-30% -40% -50% -60%

-57% -65%

-70% -80% Restaurants/Hotels

Entertainment/Recreation

Apparel & General Merchandise

Grocery

All Retail Spending

Source: Affinity Solutions via Economic Tracker, Delta Associates; December 2020.

The retail landscape will likely be permanently affected by the pandemic, even when demand does return. Unfortunately for small retailers, the rise of the one-stop-shop megaretailers will likely accelerate. While smaller mall and in-line retailers have seen sales plummet, big-box stores such as Home Depot and Best Buy, and especially discount stores like Walmart and Target, have seen sales increase. This trend will likely continue after the pandemic, even in urban areas like the District. The pandemic has also accelerated consumers’ shift to e-commerce, requiring brick-and-mortar retailers to adapt and move business online. In a somewhat ironic twist of fortunes, high-end grocer and Amazon subsidiary Whole Foods hasn’t been experiencing the same level of sales as its mainstream and discount competitors, as discussed

in an October article from Bloomberg. Many of these competitors have adopted Whole Foods’ successful strategy of accommodating pickup and delivery of online grocery orders. Other reasons for the grocer’s struggles are its infamously high prices which are less tenable with customers during a recession, as well as the lack of lunchtime crowds for its large selection of prepared food options. Online retail orders and take-out, curbside pickup, and delivery options are likely here to stay, although customers will also return to restaurants to enjoy the dining experience once the pandemic abates. In the near-term, social distancing and enhanced sanitary protocols will certainly persist, as will improved restaurant kitchen efficiency measures, including the continued proliferation of “ghost kitchens” as a lean service model without customer seating.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

WDCEP NEIGHBORHOOD PROFILES

2020 EDITION

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2020 / 2021 EDITION

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RETAIL DEVELOPMENT

RETAIL DEVELOPMENT (SF IN THOUSANDS, DECEMBER 2020) 1,200 1,000

473

600

611

665

800

318

400 200 0

2004

2005

2006

2007

2008

2009

2010

2011

GROUNDBREAKING

2012

2013

2014

2015

COMPLETED

2016

2017

2018

2019

2020

2021*

2022*

PROJECTED DELIVERIES*

*projections based on targeted delivery dates of projects under construction as of December 2020

RETAIL DEVELOPMENT (DECEMBER 2020) PROJECTS

COMPLETED (SINCE 2001)

RETAIL SF

478

9,933,705

2010

330,700

2011

312,345

2012

314,324

2013

1,041,942

2014

690,259

2015

473,626

2016

749,671

2017

637,469

2018

330,439

2019

673,434

2020

664,811

UNDER CONSTRUCTION

1,093,947

2021 DELIVERY

473,110

2022 DELIVERY

610,715

2023 DELIVERY

10,122

PIPELINE

203

4,896,392

NEAR TERM

1,366,700

LONG TERM

112

3,529,692

TOTAL

727

15,924,044

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

22 SO H UT TA KO DA

UT E AV

14TH ST.

E AV

ROCK CREEK PARK

GEORGIA AVE

TIC EC NN

TT SE U

CH A

SS A

7 U ST.

LAN

E IS

VE DA VE KA

W AS HI

M E

AL RI O M

RETAIL

Y W PK

26 16 20 19

VIRGINIA 66

UNION STATION

H ST.

21 E. CAPITOL ST.

NATIONAL MALL

VIRGINIA

U.S. CAPITOL

3 13 28

10 5 29

FORT DUPONT PARK

M ST.

NATIONALS PARK

395

2 1 M

M NATIONAL AIRPORT

Alexandria

LVA N

AV E

A BAM

ALA

12 23

JR. AV E.

M A RTIN LUTHER KING

G TO N

AVE

All project locations are approximate.

DEVELOPMENT PIPELINE PROJECT

WARD

LOCATION

DEVELOPER(S)

RETAIL SF

EST. VALUE ($M) 1

EST. DELIVERY2

TOP RETAIL PROJECTS COMPLETED (Q4 2019–Q4 2020) 1

Hecht Warehouse (1515 New York Avenue)

1515 New York Ave., NE

Douglas Development Corporation

93,000

$27

Q4 19

Riverpoint

2100 2nd St., SW

Akridge / Western Development / Orr Partners / Jefferson Apartment Group

70,400

$220

Q4 20

Beckert’s Park

415 14th St., SE

Foulger-Pratt / Safeway

68,000

$138

Q3 20

Shops at Penn Branch (Phase I)

3200 Pennsylvania Ave., SE

Jair Lynch Real Estate Partners

65,000

$25

Q4 19

The Kelvin

1250 Half St., SE

Jair Lynch Real Estate Partners

59,000

$155

Q3 20

250 Massachusetts Avenue

250 Massachusetts Ave., NW

Property Group Partners

58,400

$275

Q4 19

The Wren

965 Florida Ave., NW

MRP Realty / JBG Smith / Ellis Development Group

49,200

$153

Q3 20

Hecht Warehouse District (Pappas Building)

1401 Okie St., NE

Douglas Development Corporation

46,800

9 10

Q4 19

AVEC

901 H St., NE

Rappaport / Lustine Family / WC Smith

43,700

$200

Q2 20

West Half

1201 Half St., SE

JBG Smith

42,000

$228

Q3 20

TOP RETAIL PROJECTS UNDER CONSTRUCTION 11

City Ridge

3900 Wisconsin Ave., NW

Roadside Development / North America Sekisui House

196,000

$715

Q2 22

Crest at Skyland Town Center

Alabama Ave. & Naylor Rd., SE

Rappaport / WC Smith / Washington East

117,000

$199

Q1 21

The Wharf (Phase II)

Southwest Waterfront

Hoffman & Associates / Madison Marquette

95,000

$1,150

ART Place at Fort Totten (Phase II)

5300 South Dakota Ave., NE

Morris & Gwendolyn Cafritz Foundation

95,000

Eckington Yards

1625 Eckington Pl. & 1500 Harry Thomas Way, NE

The JBG Companies / LCOR

67,300

$265

Q2 21

Armature Works

1200 3rd St., NE

Trammell Crow Company / High Street Residential / MetLife

60,000

$400

Q2 22

The Hartley

6900 Georgia Ave., NW

Hines / Urban Atlantic / Triden Development / Bridge Investment Group

60,000

Bryant Street (Phase I)

680 Rhode Island Ave., NE

MRP Realty / FRP Development Corp

40,400

NoMa CNTR

1005 1st St., NE

Perseus TDC / Four Points / Buccini Pollin Group / Sunwater Management

39,900

$330

Q4 22

Press House at Union District

301–331 N St., NE

Foulger-Pratt

27,282

$180

Q2 21

$420

2022-28

42,400

$17

2022

Q3 22 Q4 22

Q1 22 Q3 21

TOP RETAIL PROJECTS IN THE PIPELINE 21

Northeast Heights

3924–3968 Minnesota Ave., NE

Cedar Realty Trust / Trammell Crow Company

194,600

Upton Place

4000 Wisconsin Ave. NW

Donohoe Companies

100,000

Skyland Town Center (Block 3)

Alabama Ave. & Naylor Rd., SE

Rappaport / WC Smith

113 Potomac Avenue

113 Potomac Ave., SW

Toll Brothers

41,000

$250

2023

Saint Elizabeths East (Parcel 17)

Saint Elizabeths East Campus

Redbrick LMD / Gragg Cardona Partners / DMPED

31,000

$170

2023

North Building

1329 5th St., NE

EDENS / Gables Residential

23,100

$140

2023

Saint Elizabeths East (Parcel 13)

Saint Elizabeths East Campus

Neighborhood Development Company / MCG Capital / DMPED

21,000

Waterfront Station II

1000 4th St., SW

Hoffman & Associates / CityPartners / Affordable Housing Developers / Paramount Development Corp. / DMPED

19,700

The Yards (Parcel I)

Canal & N Sts., SE

Brookfield Properties

16,000

The Clara on Martin Luther King, Jr. Ave

2313 Martin Luther King Jr. Ave, SE

Banneker Ventures / Masjid Muhammad

14,000

2024

2024 $165

2023

$43

2022

2023

1) may include non-retail components & pipeline values may include additional phases ($ in millions) 2) delivery date may reflect phase I delivery or final phase delivery.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS Image courtesy of Perkins Eastman

WARD 5

WARD 6

ART PLACE AT FORT TOTTEN (PHASE II)

AVEC

LOCATION:

DEVELOPER(S):

Fort Totten Metrorail Station Morris and Gwendolyn Cafritz Foundation ARCHITECT(S): Perkins Eastman DC / Studio Shanghai CONTRACTOR(S): L.F. Jennings STATUS: Under Construction TARGETED DELIVERY: Q4 2022

DEVELOPER(S):

SPECS: The second phase of the 2.0 million SF ART Place at Fort Totten mixeduse development, located on the 5.1-acre Block B, will consist of two buildings totaling 270 multifamily units, the Explore! Children's Museum, a family entertainment zone (anticipated to be anchored by Meow Wolf ), an Aldi grocery store (25,000 SF), 30 units of artist housing/workspace, additional retail, and 930 parking spaces.

SPECS: AVEC is a two-block redevelopment project with multiple facades. The 419-unit multifamily residential building offers 44,000 SF of retail space and a three-level underground garage that provides off-street parking for residents (309 spaces) and retail patrons (126 spaces). Retail tenants include [Solidcore], Urban Nail Lounge, AT&T, Heart & Paw, and a grocery store.

BECKERT’S PARK 415 14th Street, SE Foulger-Pratt / Safeway ARCHITECT(S): BKV Group CONTRACTOR(S): Foulger-Pratt LEED: Silver EST. VALUE: $138 million STATUS: Completed TARGETED DELIVERY: Q3 2020

Image courtesy of Neighborhood Development Company

Courtesy of BKV Group

WARD 6

901 H Street, NE Rappaport / WC Smith / Lustine Family ARCHITECT(S): Torti Gallas and Partners CONTRACTOR(S): WCS Construction LEED: Silver EST. VALUE: $200 million STATUS: Completed TARGETED DELIVERY: Q2 2020

WARD 7

BENNING MARKET

LOCATION:

DEVELOPER(S):

SPECS: Beckert's Park consists of 325 residential apartment units and 68,000 SF

SPECS: This mixed-use project will provide 12,400 SF of innovative office space and a 7,000 SF food-focused, neighborhood-serving retail, anchored by Market 7 (food hall/market), in the River Terrace neighborhood of Northeast Washington, DC.

of ground floor retail, anchored by a new 60,000 SF Safeway grocery store. The site was formerly home to a standalone Safeway with surface parking.

3451 Benning Road, NE Neighborhood Development Company ARCHITECT(S): 2-POV EST. VALUE: $5.2 million STATUS: Under Construction TARGETED DELIVERY: 2021

DEVELOPMENT HIGHLIGHTS Conceptual image courtesy of EDENS

WARD 6

BLACKBIRD LOCATION:

WARD 1

BOND BREAD 1401 Pennsylvania Avenue, SE

LOCATION:

DEVELOPER(S): May | Riegler Properties

2114 Georgia Avenue, NW

DEVELOPER(S): Edens / Menkiti Group / Fivesquares Development /

Howard University Studios Architecture EST. VALUE: $275 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: 2025

ARCHITECT(S):

Antunovich Associates Tishman Construction / AECOM LEED: Gold EST. VALUE: $80 million STATUS: Completed TARGETED DELIVERY: Q3 2020 CONTRACTOR(S):

ARCHITECT(S):

SPECS: Blackbird is a mixed-use project with 167 residential units (346–1,220 SF) and 25,700 SF of retail. The retail space offers ceiling heights up to 17 feet and is anchored by The Roost, a culinary clubhouse, a food hall, and a neighborhood gathering place. There is one level of underground parking with 59 spaces.

SPECS: Howard University selected the Bond Partnership to redevelop the 2.2-acre site. Plans include 450 residential units, 55,000 SF of retail, up to 300 parking spaces, and potentially a 180-room hotel. The two historic industrial buildings onsite will be incorporated into the development.

BRYANT STREET (PHASE I) 680 Rhode Island Avenue, NE MRP Realty / FRP Development Corp. ARCHITECT(S): SK+I Architectural Design Group LEED: Gold STATUS: Under Construction TARGETED DELIVERY: Q3 2021

Image courtesy of Roadside Development

WARD 5

WARD 3

CITY RIDGE

LOCATION:

DEVELOPER(S):

SPECS: The 13-acre Rhode Island Avenue Shopping Center will be redeveloped into a mixed-use project with up to 1,600 residential units and 275,000 SF of retail/entertainment space. Phase I will consist of three buildings totaling 487 residential units, an anticipated nine-screen Alamo Draft Cinema, and approximately 40,400 SF of additional retail space.

3900 Wisconsin Avenue, NW Roadside Development / North America Sekisui House ARCHITECT(S): Shalom Baranes Associates CONTRACTOR(S): Whiting-Turner Contracting Co. LEED: Gold EST. VALUE: $715 million STATUS: Under Construction TARGETED DELIVERY: Q2 2022 SPECS: The former headquarters for Fannie Mae (~10 acres) will be redeveloped into 1.15 million SF of mixed-use development. The plan calls for nine mixed-use buildings totaling 690 residential units, 196,000 SF of retail space (anchored by an 82,000 SF Wegmans grocery store), and 170,000 SF of office/ cultural uses. Portions of the original building will be incorporated into the overall development plan to house the International Baccalaureate’s Global Centre for the Americas. The grand front lawn will be heavily programmed with events and cultural activities.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS

COLLECTION14 LOCATION:

Image courtesy of WC Smith

Image courtesy of Perkins Eastman DC

WARD 1

WARD 7

CREST AT SKYLAND TOWN CENTER

2122 14th Street, NW

LOCATION:

Alabama Avenue & Naylor Road, SE

DEVELOPER(S): Madison Investments

DEVELOPER(S): Rappaport / WC Smith / Washington East

ARCHITECT(S):

Perkins Eastman DC

Torti Gallas and Partners WCS Construction / L.F. Jennings LEED: Silver EST. VALUE: $199 million STATUS: Under Construction TARGETED DELIVERY: Q1 2021

CONTRACTOR(S): McCullough Construction LLC

CONTRACTOR(S):

LEED:

Silver EST. VALUE: $100 million Under Construction TARGETED DELIVERY: Q3 2021 STATUS:

SPECS: The 2100 block of 14th Street will be redeveloped into a seven-story, 233-

unit residential building with up to 29,800 SF of commercial space (5,300 SF office, 20,500 SF retail, 4,000 SF for arts uses), 70 parking spaces, and at least 105 bicycle spaces. The existing structure at 2100 14th Street will be incorporated into the development.

SPECS: The redevelopment of the 18.5-acre Skyland Shopping Center could result in up to 320,000 SF of commercial space and 500 residential units. The Crest at Skyland will deliver roads and infrastructure, in addition to 263 apartments, over 117,000 gross SF of retail (84,000 SF net rentable). Future phases include 41,000 SF of retail anchored by DC’s first Lidl grocery store on Block 3 in 2022. A video of the project can be found at wdcep.co/skyland-video.

Mary Parker Photography (courtesy of Hickok Cole)

WARD 1

J LINEA 2009 8th Street, NW Jefferson Apartment Group / Stars Investment Management ARCHITECT(S): Hickok Cole CONTRACTOR(S): CBG Building Company LEED: Silver EST. VALUE: $75 million STATUS: Completed TARGETED DELIVERY: Q2 2020

WARD 6

NOMA CNTR

LOCATION:

DEVELOPER(S):

DEVELOPER(S): Four Points / Perseus TDC / Buccini Pollin Group /

SPECS: The new 132-unit mixed-use residential building sits above 16,400 SF of street-level retail and 57 parking spaces. The avant-garde boutique residence has a unique angular geometry and a cascading gold fins series, while preserving the pedestrian scale of the narrow side street.

1005 1st Street, NE Sunwater Management

ARCHITECT(S): HKS PC CONTRACTOR(S): John Moriarty & Associates LEED:

Silver EST. VALUE: $330 million Under Construction TARGETED DELIVERY: Q4 2022 STATUS:

SPECS: NoMa CNTR will be a mixed-use development with 500 residential units, a 235-room Marriott hotel, and up to 40,000 SF of retail space. The building's west wing will be residential, while the east wing will include residential and hotel uses.

DEVELOPMENT HIGHLIGHTS Courtesy of Foulger-Pratt Companies

WARD 7

NORTHEAST HEIGHTS LOCATION:

PRESS HOUSE AT UNION DISTRICT

Minnesota Avenue & Benning Road, NE

LOCATION:

301 N Street, NE Foulger-Pratt ARCHITECT(S): Torti Gallas Urban / AA Studio CONTRACTOR(S): Foulger-Pratt LEED: Gold EST. VALUE: $180 million STATUS: Under Construction TARGETED DELIVERY: Q2 2021

DEVELOPER(S): Cedar Realty Trust / Trammell Crow Company

DEVELOPER(S):

ARCHITECT(S): Perkins Eastman DC / Moya Design Partners /

SK+I Architectural Design Group $420 million STATUS: Pipeline (Near-Long Term) TARGETED DELIVERY: 2022–28 EST. VALUE:

SPECS: The 13.2-acre site, bisected by Minnesota Avenue, involves the redevelopment of two distinct existing shopping centers. Total build-out could result in 265,000 SF of office space (anchored by the 700-employee DC Department of General Services), 1,355 residential units, 194,600 SF of retail uses, 1,127 parking spaces, and 706 bicycle spaces.

RIVERPOINT

SPECS: This project will deliver 356 residential apartment units, 25,700 SF of office space, and 27,300 SF of retail space. The project will rehabilitate and incorporate the historical structure onsite to serve as the new home for Hickok Cole. A future phase may include a hotel/condo building.

Image courtesy of Bonstra | Haresign ARCHITECTS

WARD 6

LOCATION:

WARD 6

WARD 8

SAINT ELIZABETHS EAST (PARCEL 13) 2100 2nd Street, SW

LOCATION:

Saint Elizabeths East Campus

DEVELOPER(S): Akridge / Western Development Corporation /

DEVELOPER(S): Neighborhood Development Company / MCG Capital /

ARCHITECT(S):

Jefferson Apartment Group / Orr Partners Antunovich Associates CONTRACTOR(S): CBG Building Company LEED: Silver EST. VALUE: $220 million STATUS: Completed TARGETED DELIVERY: Q4 2020

SPECS: RiverPoint is an adaptive reuse of the former U.S. Coast Guard

headquarters at Buzzard Point into 481 residential apartments and up to 70,400 SF of restaurant and retail space, anchored by a seafood restaurant by Greg Casten, and a waterfront restaurant, a food hall by Spike Gjerde, and DC Central Kitchen's new HQ.

DMPED Bonstra | Haresign Architects CONTRACTOR(S): GCS-Sigal LLC STATUS: Pipeline (Near Term) TARGETED DELIVERY: 2024

SPECS: Redevelopment plans for the 2.9-acre site call for a seven-story, 421-unit residential rental building with 126 affordable units, 21,000 SF of commercial space, and 240 underground parking spaces. The retail will be anchored by the restaurant Halfsmoke and social services organization A Wider Circle. The project will also include pedestrian access to the Congress Heights Metrorail Station.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS

STRAND THEATER LOCATION:

Image courtesy of Urban Atlantic

WARD 7

WARD 4

THE PARKS AT WALTER REED (THE HARTLEY)

5119–5127 Nannie Helen Burroughs Avenue, NE

LOCATION:

DEVELOPER(S): The Warrenton Group / Washington Metropolitan CDC /

NHP Foundation PGN Architects PLLC CONTRACTOR(S): WCS Construction LEED: Gold EST. VALUE: $38 million STATUS: Under Construction TARGETED DELIVERY: Q3 2021 ARCHITECT(S):

SPECS: The Strand Residences will be built adjacent to the historic Strand Theater and will feature approximately 1,400 SF of retail space on the groundlevel, 1,200 SF of community/business incubator space, and 86 affordable residential units. The historic theatre will be renovated and become home to Deanwood Smokehouse, from the owners of Ivy City Smokehouse.

6900 Georgia Avenue, NW Urban Atlantic / Hines / Triden Development Group ARCHITECT(S): Torti Gallas Urban, Inc. CONTRACTOR(S): CBG Building Company STATUS: Under Construction TARGETED DELIVERY: Q1 2022 DEVELOPER(S):

SPECS: The Hartley (Building I/J) is a mixed-use project located on the former Walter Reed medical campus. The building will include 323 rental apartments and 60,000 SF of retail space, anchored by a 40,000 SF Whole Foods grocery store. The Hartley is the first component of the "town center" portion of the 3.1 million SF Walter Reed redevelopment master plan and is being constructed on the site of the former 2.6 million SF hospital building.

WARD 1

THE WREN

WARD 6

WEST HALF

LOCATION:

965 Florida Avenue, NW MRP Realty / Ellis Development Group / JBG Smith ARCHITECT(S): Hord Coplan Macht / PGN Architects CONTRACTOR(S): John Moriarty & Associates LEED: Silver EST. VALUE: $153 million STATUS: Completed TARGETED DELIVERY: Q3 2020

LOCATION:

DEVELOPER(S):

DEVELOPER(S): JBG Smith

SPECS: MRP and Ellis Development Group won the RFP from the DC government (July 2013) to redevelop the site into a 400,000 SF mixed-use project. The Wren features 433 residential rental apartments (130 affordable), a 44,000 SF Whole Foods grocery store, and 344 parking spaces on three levels of below-grade parking.

SPECS: West Half is an 11-story mixed-use building featuring 465 residential rental apartment units (some with large terraces facing Nationals Park) and 42,000 SF of retail space on two levels.

1201 Half Street, SE

ARCHITECT(S):

Eric Colbert & Associates / ODA Architecture HITT LEED: Gold EST. VALUE: $228 million STATUS: Completed TARGETED DELIVERY: Q3 2020 CONTRACTOR(S):

RESIDENTIAL DEVELOPMENT IN WASHINGTON, DC

Image courtesy of Bonstra | Haresign Architects

By: Nick DuBose, Real Estate Analyst, Delta Associates

The Washington metro area is the seventh largest apartment market in the U.S., with the Census Bureau approximating its multifamily supply at 561,000 units.

TOTAL DC HOUSEHOLDS 1

RENTAL UNIT INVENTORY 2

STABILIZED APARTMENT VACANCY 2

RESIDENTIAL UNITS UNDER CONSTRUCTION 3

Q4 2020 (CLASS A+B MARKET-RATE)

~83% MARKET-RATE UNITS (DECEMBER 2020)

52,387

313,459

17.5% INCREASE FROM 2010

In 2020, 10,842 Class A market-rate apartment units were delivered in the Washington metro area, with 5,559 of those units located in the District. Over the same period, 3,692 Class A and B market-rate apartments were absorbed in the Washington metro area on a net basis. The District contributed just 469 units (net) to that total, which was a massive drop from the 4,314 units absorbed in 2019.

9.6%

13,777

Most recent apartment deliveries have been concentrated in the Capitol Riverfront and Southwest, with a total of 12 projects with over 4,000 units completed in the two neighborhoods during the year, and another nine projects with over 2,500 units currently under construction. Additional concentrations of construction activity are in the NoMa/Union Market, Columbia Heights, and Shaw submarkets. The 17 projects that began leasing in

THE DISTRICT’S CLASS A + B APARTMENT MARKET 20%

4,000 15.5%

15% 10%

3,000

2,000

0% -5%

NUMBER OF UNITS

1,000

-10% 469

-15% -20% Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

2015

2016 ANNUAL ABSORPTION

-18.5% Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20

2017

2018 ANNUAL RENT GROWTH

2019

2020

OVERALL VACANCY

Source: Delta Associates; December 2020

1. Esri forecasts for 2020 2. Delta Associates, December 2020. “Stabilized Vacancy” is the rate of “available units” in properties that have achieved 95% occupancy. The building stays in the pool of stabilized properties even if it falls below 95% occupancy at a subsequent date. 3. Washington DC Economic Partnership, December 2020. Includes rental & ownership units (market-rate & non-market rate) in new construction & major renovation projects

RESIDENTIAL DEVELOPMENT

the District in 2020 have seen an average lease-up pace of approximately 12 units per month. Over the next two years, about 10,700 new market-rate units are expected to enter the District’s apartment market. During the same timeframe, a total of 26,200 new apartment unit deliveries are projected metro-wide.

than double the 4.9% rate a year prior. The greater metro area had a stabilized vacancy rate of 6.1% for all classes of apartments at the end of 2020, compared to 4.6% at year-end 2019. Nevertheless, multifamily vacancy in the Washington region remains lower than other major metropolitan areas like Boston, Atlanta, Dallas/Fort Worth, South Florida, Houston, and Chicago. Multifamily demand in Washington is relatively strong, although it has been tempered due to the pandemic. Hyper-supply in the region is the most significant threat to healthy vacancy rates in the coming years, and the apartment market in the District is under even greater pressure due to outmigration to the suburbs.

A substantial number of deliveries over the past five years, combined with the current crisis surrounding COVID-19, have caused vacancy rates in the District and Washington metro area to rise significantly in 2020. The District had a stabilized vacancy rate of 10.3% for Class A apartments as of the end 2020, more

WASHINGTON METRO AREA CLASS A + B APARTMENT MARKET 6.6% 6.0% 15,000 4.0% 2.0%

-2.0% -4.0%

5,000

NUMBER OF UNITS

10,000

0.0%

3,692

-6.0% -8.0% -10.0% Q4-15

2015

Q1-16

Q2-16

Q3-16

2016

Q4-16

Q1-17

Q2-17

Q3-17

Q4-17

Q1-18

2017 ANNUAL ABSORPTION

Q2-18

Q3-18

Q4-18

Q1-19

2018 ANNUAL RENT GROWTH

Q2-19

Q3-19

Q4-19

Q1-20

2019

-10.1% Q2-20 Q3-20 Q4-20

2020 OVERALL VACANCY

Source: Delta Associates; December 2020

Since the COVID-19 pandemic hit the U.S. at the end of Q1 2020, concessions have skyrocketed in the District. Over the past two quarters, as a percentage of face rent, average concessions have increased from 2.2% in Q1 2020 to a whopping 10.7% in Q4 2020—the highest rate of lease concessions in recent history. So far, these efforts have done little to temper the rise in vacancy caused by the pandemic.

The multitude of deliveries and lack of absorption over the past year have worsened the crisis. With a rapidly increasing supply of units and renters seeking more affordable options during economic volatility, the District multifamily market will continue to be highly vulnerable to fluctuating demand and heightened competition in the short-term, but prospects remain positive over the long-term for the city.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

RESIDENTIAL DEVELOPMENT

SINGLE-FAMILY, CONDO, AND TOWNHOME MARKET

MULTIFAMILY UNITS AND VACANCY SELECTED U.S. METROPOLITAN AREAS (Q4 2020) Q4 2020 VACANCY

LOCATION

In stark contrast to the rental apartment market, the District’s for-sale market performed relatively well in 2020. There were a total of 9,549 condo, townhome, and single-family existing home sales recorded in the District during 2020, a 6.0% increase in volume over 2019. Existing condo sales grew 9.8% during 2020, while existing rowhome sales increased 6.8%. However, sales volume for detached single-family homes in the District decreased 6.5%. The median price for all existing home types as of Q4 2020 was $664,200, a nearly 10% increase from a year prior. The median sales prices for these types of units in 2020 through October were $505,500 and $780,000, respectively. New condo sales in the District were down in 2020 at 408 total units compared to 543 units in 2019. However, “same-store” prices increased 2.5% District-wide, with positive gains in every submarket except Central DC (-1.6% price change). Low interest rates coupled with mortgage payments comparable to many Class A apartment rents helped increase condo demand in 2020. Upper Northwest (where all sales are in high-end luxury buildings) remained the new condo price leader in 2020 at an average of $1,319 in effective price per SF. In contrast to apartments, concessions remained low for new condos averaging 0.5% as a percentage of asking price as of Q4 2020.

COVID-19’S IMPACT ON THE DC RESIDENTIAL MARKET COVID-19 has devastated the District’s multifamily market, while the city’s for-sale market remains relatively unaffected. The -18.5% annual rent growth for all apartments in the District in 2020 is unprecedented, and ongoing construction continues to threaten market stability going forward. Declining rents may help curb the rise in vacancy, but not enough to return the market to pre-pandemic performance. Tenant rent payment rates have declined as households struggle financially and eviction moratoriums were put in place. Nationally, the rate of rent collection fell to a new all-time low of 75.4% in December 2020, compared to 83.2% a year prior.4

4. National Multifamily Housing Council, December 2020.

Atlanta

5.5%

Boston

6.0%

Chicago

5.9%

Dallas/Fort Worth

6.1%

Houston

6.0%

Los Angeles Basin

4.3%

New York

4.7%

San Francisco Bay

4.8%

South Florida

6.8%

Washington

4.7%

Note: Vacancy includes Class A and Class B. Source: REIS, Delta Associates; December 2020

CLASS A APARTMENT EFFECTIVE RENT AND ANNUAL RENT GROWTH (Q4 2020) SUBMARKET

EFFECTIVE RENT

RENT CHANGE

VACANCY

Brookland/Fort Totten

$1,859

-10.1%

8.4%

Capitol Hill

$2,898

-6.5%

11.5%

Capitol Riverfront

$2,138

-21.4%

11.4%

Columbia Heights

$1,950

-17.2%

10.2%

Dupont/Logan Circle

$2,451

-21.0%

6.9%

East End

$2,184

-23.4%

10.6%

H Street

$2,153

-15.4%

8.6%

Mount Vernon Triangle

$1,986

-23.9%

8.2%

NoMa/Union Market

$2,052

-15.7%

9.2%

Shaw

$2,069

-24.0%

10.5%

Southwest

$2,091

-21.0%

14.4%

U Street

$2,455

-17.6%

10.3%

West End

$3,021

-19.2%

8.5%

District Average

$2,185

-17.9%

10.3%

Source: Delta Associates; December 2020

RESIDENTIAL DEVELOPMENT

DISTRICT CONCESSIONS AS A PERCENTAGE OF FACE RENT (Q1 2018–Q4 2020) 10.7% 10%

0% Q1

2018

2019

2020

Source: Transwestern, Delta Associates; December 2020.

Although the for-sale market has so far prospered despite economic concerns arising from the pandemic, it may too be in for a correction as mortgage forgiveness policies expire in summer 2021. The District’s multifamily market already has excess supply and owner-occupied housing may experience a similar trajectory as elevated unemployment and expiring federal aid may cause an increase in mortgage defaults in the latter half of next year. Most indicators, particularly the arrival of proven COVID-19 vaccines, point to a potentially robust rebound in the local residential market in 2021. Specifically, the recovery from the current downturn in the apartment market and an aversion of a similar dip in the for-sale market is highly dependent on the following factors:

• Cohesive and effective public policy from the new presidential administration and unified Congress to soften the blow to the U.S. economy, especially the provision of financial assistance to individual households. • Adaptation to the current market reality by property managers, owners, and developers to remain competitive in the marketplace by: – Designing/renovating units and common areas with work-from-home in mind. – Promoting healthy and sanitary environments. – Continuing to offer generous concessions and rent relief.

• Postponement of some of the multifamily construction pipeline in supply-burdened submarkets to avoid further weighing down the market.

– Including as much outdoor space as possible in new development, including courtyards, balconies, and rooftop decks.

• The rapid and broad distribution of an effective COVID-19 vaccine to all communities in the District.

– Leverage technology to carry-out management responsibilities including socially-distanced self-guided and virtual tours.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

RESIDENTIAL DEVELOPMENT

NEW CONDO SALES VOLUME AND PRICE PER SQUARE FOOT 200

$799

$800

$700

NO. OF CONDO SALES

150

$600

$500 $400

100

$300

55 50

$200

$100

$0 Q4-15

Q1-16

Q2-16

2015

Q3-16

2016

Q4-16

Q1-17

Q2-17

Q3-17

Q4-17

2017 SALES VOLUME FOR QUARTER

Source: Delta Associates; December 2020.

Q1-18

Q2-18

Q3-18

2018

Q4-18

Q1-19

Q2-19

Q3-19

Q4-19

2019 EFFECTIVE PRICE PSF

Q1-20

Q2-20 Q3-20 Q4-20

2020

RESIDENTIAL DEVELOPMENT RESIDENTIAL UNITS (DECEMBER 2020) 2004

1,004

2,531 3,535 3,020 5,837

3,155

2006 2007

2,817

2008

1,460 246 1,706

2005

1,256 4,411

2006

758 3,575

2007 2008

753 173 926

2010

2009

3,539 446 3,985 5,023 499 5,522

2011

5,542 556 6,098

2012 2013

2010

4,194

2014

679 4,873 4,981

2015

5,210

2016

2013

1,014 5,995

2014

614 5,824

2015

6,654

2017

2012

1,011 7,665

6,230 584 6,814

2018

6,458 291 6,749 6,666

2019

1,040 7,706

5,037 246 5,283

2020

COMPLETED RENTAL HO 2,666

2004

2,817

2005

2009

GROUNDBREAKINGS RENTAL HO

PROJECTED RENTAL HO

1,837 4,503

1,828

2,128 3,956

1,399

2,584 3,983 2,547

2,586 5,133

3,121 2,721

1,161 4,282

912 3,633

1,385 524 1,909 1,574 369 1,943 3,443 482 3,925 3,932 613 4,545 5,991 318 6,309 2,595 760 3,355 4,991 691 5,682

2016

6,165 870 7,035

2017

5,367 768 6,135

2018 2019

5,776 268 6,044

2020

8,264 886 9,150 5,657 1,067 6,724

2021* 2022*

6,410 186 6,596

Note: HO = Home ownership *projections based on targeted delivery dates of projects under construction as of December 2020.

RESIDENTIAL DEVELOPMENT (DECEMBER 2020) PROJECTS

UNITS

RENTAL

CONDOS

785

90,046,217

91,524

71,621

19,903

15,591

2010

2,186,187

1,909

1,385

524

146

2011

1,899,277

1,943

1,574

369

269

COMPLETED (SINCE 2001)

2012

4,010,523

3,925

3,443

482

173

2013

4,040,803

4,545

3,932

613

463

2014

5,836,063

6,309

5,991

318

139

2015

3,006,007

3,355

2,595

760

607

2016

5,432,938

5,682

4,991

691

314

2017

6,924,549

7,035

6,165

870

827

2018

5,359,891

6,135

5,367

768

622

2019

5,821,828

6,044

5,776

268

150

2020

8,586,406

9,150

8,264

886

824

UNDER CONSTRUCTION

12,898,040

13,777

12,524

1,253

1,121

2021 DELIVERY

6,317,202

6,724

5,657

1,067

1,025

2022 DELIVERY

6,253,425

6,596

6,410

186

2023 DELIVERY

327,413

457

0 3,296

PIPELINE

294

59,485,705

66,498

37,957

4,149

NEAR TERM

134

17,418,466

19,417

16,295

1,692

1,288

LONG TERM

160

42,067,239

47,081

21,662

2,457

2,008

1,149

162,429,962

171,799

122,102

25,305

20,008

TOTAL

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

H UT

SO TA KO DA

26 5

18 LAN

E IS

VE DA

RESIDENTIAL

E AV

14TH ST.

U ST.

E AV

ROCK CREEK PARK

GEORGIA AVE

TIC EC NN

TT SE U

CH A

SS A

24 12

VE KA

G TO N

M E

AL RI O M

Y W PK

VIRGINIA

20 19 14 16

UNION STATION

H ST.

21 E. CAPITOL ST.

NATIONAL MALL

VIRGINIA

U.S. CAPITOL

30 27

10 7 3 1 9 28

FORT DUPONT PARK

M ST.

NATIONALS PARK

395

22 M

LVA N

AV E

M NATIONAL AIRPORT

M A RTIN LUTHER KING

JR. AV E.

Alexandria

A AV

BAM

ALA

All project locations are approximate.

DEVELOPMENT PIPELINE PROJECT

WARD

LOCATION

DEVELOPER(S)

UNITS

TYPE1

EST. VALUE ($M)2

DELIVERY3

TOP RESIDENTIAL PROJECTS COMPLETED (Q1 2020–Q4 2020) 1

Crossing DC (Phase I)

949 1st St., SE

Tishman Speyer

512

Riverpoint

2100 2nd St., SW

Akridge / Western Development / Orr Partners / Jefferson Apartment Group

481

$220

Q4 20 Q4 20

West Half

1201 Half St., SE

JBG Smith

465

$228

Q3 20

Watermark

1900 Half St., SW

Douglas Development Corporation

453

$190

Q3 20

The Wren

965 Florida Ave., NW

MRP Realty / JBG Smith / Ellis Development Group

433

$153

Q3 20

AVEC

901 H St., NE

Rappaport / Lustine Family / WC Smith

419

$200

Q2 20

The Garrett

150 Eye St., SE

WC Smith

373

$170

Q4 20

Beckert’s Park

415 14th St., SE

Foulger-Pratt / Safeway

325

$138

Q3 20

The Kelvin

1250 Half St., SE

Jair Lynch Real Estate Partners

312

$155

Q3 20

Parc Riverside (Phase II)

1010 Half St., SE

Toll Brothers

308

$103

Q2 20

TOP RESIDENTIAL PROJECTS UNDER CONSTRUCTION 11

Illume (Phase I & II)

809 & 853 New Jersey Ave., SE

Greystar Development / J.P. Morgan Asset Management / Oxford Properties Group

756

Q2 22

City Ridge

3900 Wisconsin Ave., NW

Roadside / North America Sekisui House

690

$715

Q2 22

Eckington Yards

1625 Eckington Pl. & 1500 Harry Thomas Way, NE

The JBG Companies / LCOR

681

R/O

$265

Q2 21

Armature Works

1200 3rd St., NE

Trammell Crow Company / High Street Residential / MetLife

635

$400

Q2 22

Sursum Corda Redevelopment (Phase I)

North Capitol St., M St., 1st St., L St., NW

Toll Brothers

562

$226

Q2 22

NoMa CNTR

1005 1st St., NE

Perseus TDC / Four Points / Buccini Pollin Group / Sunwater Management

500

$330

Q4 22

Museum Place

65 I St., SW

Lowe

492

$200

Q4 22

Bryant Street (Phase I)

680 Rhode Island Ave., NE

MRP Realty / FRP Development Corp

487

300 M

300 M St., NE

LCOR

457

$212

Q4 22

The Gantry (Building A-1)

300 Morse St., NE

Kettler / Carmel Partners

450

Q3 21

2022-28

Q3 21

TOP RESIDENTIAL PROJECTS IN THE PIPELINE 21

Northeast Heights

3924–3968 Minnesota Ave., NE

Cedar Realty Trust / Trammell Crow Company

1355

100 V Street (Phase I)

1st, 2nd, T & V Sts., SW

Akridge

1100

Columbian Quarter (Phase I)

Suitland Parkway & Howard Rd., SE

Redbrick LMD

725

2023 $260

2023

Upton Place

4000 Wisconsin Ave. NW

Donohoe Companies

689

113 Potomac Avenue

113 Potomac Ave., SW

Toll Brothers

520

$250

2023

2024

Bond Bread

2114 Georgia Ave., NW

EDENS / Menkiti Group / Fivesquares Development / Howard University

450

$275

2025

Waterfront Station II

1000 4th St., SW

Hoffman & Associates / CityPartners / Affordable Housing Developers / Paramount Development Corp. / DMPED

449

$165

2023

The Yards (Parcel I)

Canal & N Sts., SE

Brookfield Properties

379

2023

1313 L Street

1313 L St., NW

Lincoln Property Company

222

2023

400 I Street

400 Eye St., SW

Bozzuto / Dantes Partners / Westminster Presbyterian Church

222

2024

1) R = rental; O = ownership 2) may include non-residential components 3) delivery date may reflect phase I delivery or final phase delivery.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS Image courtesy of Jefferson Apartment Group

WARD 6

WARD 5

1319 SOUTH CAPITOL STREET LOCATION:

1400 MONTANA AVENUE

1319 South Capitol Street, SW

LOCATION:

1400 Montana Avenue, NE MidCity ARCHITECT(S): Maurice Walters CONTRACTOR(S): L.F. Jennings EST. VALUE: $33 million STATUS: Under Construction TARGETED DELIVERY: Q2 2022

DEVELOPER(S): Jefferson Apartment Group / Fortis

DEVELOPER(S):

ARCHITECT(S):

Beyer Blinder Belle Architects & Planners Gold EST. VALUE: $130 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2023 LEED:

SPECS: Plans call for an 11-story, 320-unit residential apartment building on a site across South Capitol Street from Nationals Park. The eight rowhouses on the site will be incorporated into the development as live/work space or commercial uses.

ALTA 801 801 New Jersey Avenue, NW Wood Partners ARCHITECT(S): WDG Architecture LEED: Silver STATUS: Pipeline

Image courtesy of Neighborhood Development Company

Image courtesy of WDG Architecture

WARD 6

SPECS: The site of a former drive-through bank building will be redeveloped into 108 residential apartments and 33 surface parking spaces. The project is targeted LEED for Homes v4: Multifamily and started construction in December 2020.

WARD 4

THE ARBOR AT TAKOMA

LOCATION:

DEVELOPER(S):

DEVELOPER(S): Neighborhood Development Company

SPECS: The existing site is bounded by New Jersey Avenue, 1st Street and H Streets, NW. The redevelopment plan for the current gravel parking lot calls for 327 residential rental units and 2,000 SF of retail space.

218 Cedar Street, NW

CONTRACTOR(S):

Square 134 Architects $20 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: 2023 EST. VALUE:

SPECS: The Arbor at Takoma is a four-story (plus penthouse), ground-up development comprised of 8,400 SF of office/retail space and 36 residential condominiums (four will be dedicated as affordable units). Neighborhood Development Company plans to relocate its headquarters to the development once completed.

DEVELOPMENT HIGHLIGHTS

BOATHOUSE

Image courtesy of Smoot Construction

Image courtesy of WDG Architecture

WARD 2

WARD 3

THE BROOKS

LOCATION:

2601 Virginia Avenue, NW Urban Investment Partners ARCHITECT(S): WDG Architecture CONTRACTOR(S): UIP General Contracting LEED: Silver EST. VALUE: $84 million STATUS: Completed TARGETED DELIVERY: Q1 2020

LOCATION:

DEVELOPER(S):

DEVELOPER(S): Department of General Services

3320 Idaho Avenue, NW

SPECS: Boathouse is the conversion and expansion of a former 110,000 SF dormitory (and former hotel) into a 145,000 SF residential building with 250 apartments and 5,000 SF of ground-floor retail. The building features a rooftop pool, amenity space, and covered parking.

SPECS: The Ward 3 Short Term Family Housing project is a new six-story, 42,000 SF housing facility for the Department of Human Services that provides 50 short term family housing units for families coming out of homelessness. The structure consists of a one-story conventional concrete podium, with five stories of composite structural slab supported with prefabricated metal stud bearing walls.

ARCHITECT(S):

Ayers Saint Gross Smoot Construction DC LEED: Gold EST. VALUE: $30 million STATUS: Completed TARGETED DELIVERY: Q2 2020 CONTRACTOR(S):

Image courtesy of Banneker Ventures, LLC

WARD 8

THE CLARA ON MARTIN LUTHER KING, JR. AVE

WARD 5

ECKINGTON YARDS

LOCATION: 2313 Martin Luther King Jr. Ave, SE

LOCATION:

DEVELOPER(S): Banneker Ventures, LLC / Masjid Muhammad

DEVELOPER(S):

ARCHITECT(S): dp+partners CONTRACTOR(S):

Hamel Builders / Banneker Ventures, LLC $43 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2022 EST. VALUE:

SPECS: The Clara on Martin Luther King Jr. Avenue will be a six-story building spanning half of a city block and comprised of 81 affordable rental housing units with 14,000 SF of neighborhood-serving retail space, along with community space, and underground and surface parking.

1611–1625 Eckington Place, NE & 1500 Harry Thomas Way, NE JBG Smith / LCOR ARCHITECT(S): Eric Colbert & Associates CONTRACTOR(S): CBG Building Company LEED: Silver EST. VALUE: $265 million STATUS: Under Construction TARGETED DELIVERY: Q2 2021 SPECS: The 3.1-acre site was redeveloped into four connected buildings totaling 681 residential units (457 apartments, 179 condos, 45 stacked duplexes), 67,300 SF of retail/commercial/maker space, and 331 underground parking spaces (on two levels). The commercial space will be located along a woonerf (shared street) and include Union Kitchen Grocery and Brooklyn Boulders.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS WARD 6

THE GARRETT LOCATION:

WARD 5

LEDGER UNION MARKET 150 Eye Street, SE

LOCATION:

1300 4th Street, NE EDENS / Great Gulf ARCHITECT(S): Shalom Baranes Associates CONTRACTOR(S): James G. Davis Construction Corporation LEED: Gold STATUS: Completed TARGETED DELIVERY: Q4 2020

DEVELOPER(S): WC Smith

DEVELOPER(S):

ARCHITECT(S):

SK+I Architectural Design Group WCS Construction LEED: Silver EST. VALUE: $170 million STATUS: Completed TARGETED DELIVERY: Q4 2020 CONTRACTOR(S):

SPECS: The Garrett is a 13-story, 373-unit residential rental property with 13,200 SF of retail space. The building features an indoor basketball court, racquetball court, and tennis court, as well as an enclosed garden and a 5,000 SF memberonly co-working space.

SPECS: As part of EDEN’s Union Market District, the second phase of the 4th

Street development includes a 134-unit residential building with 12,000 SF of retail space and 118 parking spaces (in three underground levels) with 61 bike spaces. This is Great Gulf’s first project in the Washington, DC market.

Image courtesy of H Street CDC

WARD 8

LIVING PLACE AT SOUTHERN LOCATION:

306 Southern Avenue, SE

DEVELOPER(S): Dantes Partners / Gilbane Building Company /

H Street CDC / Carding Group Gilbane Building Company EST. VALUE: $67 million STATUS: Under Construction TARGETED DELIVERY: Q3 2021 CONTRACTOR(S):

SPECS: Living Place at Southern will be a five-story, 152-unit affordable senior assisted living facility. All tenants will have access to support services including medical, dental, rehabilitative, and counseling services. Eleven percent of the apartments are designed to be fully accessible.

WARD 5

EVERTON LOCATION:

7th & Monroe Streets, NE

DEVELOPER(S): Bozzuto / Pritzker Realty Group ARCHITECT(S):

Maurice Walters Bozzuto Construction LEED: Silver EST. VALUE: $58 million STATUS: Under Construction TARGETED DELIVERY: Q4 2020 CONTRACTOR(S):

SPECS: The Everton (Block E) was the final phase of the 8.9-acre Monroe Street Market project and consists of 156 multifamily residential units above 20,200 SF of ground-floor retail space.

DEVELOPMENT HIGHLIGHTS

MUSEUM PLACE LOCATION:

Image courtesy of SK+I Architecture

WARD 6

NORTHWEST ONE (PHASE I)

65 I Street, SW

LOCATION:

North Capitol & L Streets, NW

DEVELOPER(S): Lowe

DEVELOPER(S): MRP Realty / CSG Urban Partners / Taylor Adams Associates

ARCHITECT(S):

Beyer Blinder Belle Architects & Planners LLP Balfour Beatty / Christman LEED: Gold EST. VALUE: $200 million STATUS: Under Construction TARGETED DELIVERY: Q4 2022

ARCHITECT(S):

CONTRACTOR(S):

SPECS: The historic Randall School will be renovated and become the new home for a 31,800 SF contemporary art museum and 18,600 SF of commercial space with retail, service, office (including co-working), and education uses. A 12-story, 489-unit (20% affordable) multifamily building will be constructed adjacent to the school. Approximately 19 of the units will be two-level “townhouse-style” units located on the ground floor.

SPECS: The first phase of the 740-unit, three-building, three-phased Northwest One redevelopment will be a seven-story, 220-unit residential building. The building will feature 150 affordable units and 56 three- or four-bedroom units.

SK+I Architectural Design Group McCullough Construction LEED: Silver EST. VALUE: $81 million STATUS: Under Construction TARGETED DELIVERY: Q3 2022

Hoachlander Davis Photography (courtesy of Bonstra | Haresign Architects)

WARD 2

ORA

WARD 6

PARC RIVERSIDE (PHASE II)

LOCATION:

2144 California Street, NW Bedrock Real Estate Partners ARCHITECT(S): Bonstra | Haresign Architects CONTRACTOR(S): Grunley Construction EST. VALUE: $66 million STATUS: Completed TARGETED DELIVERY: Q3 2019

LOCATION:

DEVELOPER(S):

1010 Half Street, SE Toll Brothers ARCHITECT(S): WDG Architecture CONTRACTOR(S): Toll Brothers LEED: Certified EST. VALUE: $103 million STATUS: Completed TARGETED DELIVERY: Q2 2020

SPECS: The existing nine-story, 113-unit multifamily building was built in 1959 and underwent a gut rehabilitation that included renovating the building’s exterior facades, grounds, entry area, ground floor lobby with leasing and amenity areas, and public corridors. The existing rooftop terrace was expanded, and existing exterior windows and doors were replaced.

SPECS: Parc Riverside (Phase II) is a 308-unit apartment building on 28,200 SF of land located at Half, K, and L Streets, SE. The first phase (a 287-unit apartment building) delivered in Q1 2015.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS Image courtesy of DMPED and Flaherty & Collins

Image courtesy of Torti Gallas Urban

WARD 7

PROVIDENCE PLACE LOCATION:

RESIDENCES AT ST. ELIZABETHS EAST

50th & Fitch Street, NE

LOCATION:

DEVELOPER(S): Urban Matters Development Partners /

Flaherty & Collins Cunningham + Quill Architects, PLLC CONTRACTOR(S): Flaherty & Collins EST. VALUE: $100 million STATUS: Completed TARGETED DELIVERY: Q4 2020 ARCHITECT(S):

SPECS: Residences at St. Elizabeths East (RSEE), located on Parcel 11, were the result of adaptive reuse of seven historic, former hospital buildings into apartments (80% affordable / 20% market-rate) and started to deliver units in November 2019 (Phase I) through November 2020 (Phase II).

SPECS: Providence Place will be a four-story, 93-unit affordable housing

development with 35 units as replacement homes for Lincoln Heights & Richardson Dwellings communities. Solar panels will cover 6,000 SF of the roof.

SEVEN | H

Image courtesy of WDG Architecture

Image courtesy of Rock Creek Property Group

WARD 6

SURSUM CORDA REDEVELOPMENT (PHASE I) 646–654 H Street, NE

DEVELOPER(S): Rock Creek Property Group /

Cornerstone Development Group

ARCHITECT(S): PGN Architects CONTRACTOR(S):

Eichberg Construction Certified STATUS: Completed TARGETED DELIVERY: Q1 2020 LEED:

SPECS: 7|H is a new six-story, 23-unit mixed-use condominium building with up to 14,000 SF of retail space. Residences feature nine-foot ceilings and the retail space offers 12-14-foot ceiling heights. Portions of the existing one- and twostory buildings previously on the site were incorporated into the project.

1201 Oak Drive, SE

DEVELOPER(S): Anacostia Economic Development Corporation /

Atlantic Pacific Communities / Progressive National Baptist Convention CDC ARCHITECT(S): Torti Gallas Urban CONTRACTOR(S): Hamel Builders EST. VALUE: $39 million STATUS: Under Construction TARGETED DELIVERY: Q3 2021

LOCATION:

WARD 8

LOCATION:

North Capitol Street, M Street, 1st Street, L Street, NW Toll Brothers ARCHITECT(S): WDG Architecture CONTRACTOR(S): Harvey Cleary Builders / Ellisdale Construction & Development LEED: Silver EST. VALUE: $226 million STATUS: Under Construction TARGETED DELIVERY: Q2 2022 DEVELOPER(S):

SPECS: Phase I is located on 2.44 acres on the southern parcel between Pierce & L Streets, NW and will consist of a nine-story, 216-unit residential building and an eight- to ten- story, 346-unit residential building. The overall development calls for 122 of the 199 affordable units to be reserved for Sursum Corda residents.

HOSPITALITY DEVELOPMENT IN WASHINGTON, DC

Image courtesy of The Smithsonian

By Nick DuBose, Real Estate Analyst, Delta Associates

After years of consistent occupancy and RevPAR rates, despite thousands of new hotel rooms being added to the market, the COVID-19 pandemic has made a major impact on the hospitality sector. 2020 PROJECTED DOMESTIC VISITORS1

2022 PROJECTED DOMESTIC VISITORS1

~50% DECREASE FROM 2019

SIMILAR TO 2016 VISITATION LEVELS

11 M

NEW HOTEL ROOMS DELIVERED IN 20202

20 M

1,275

Hotel occupancy in the District plunged to a record low of 10.9% in April 2020 (75.8% below April 2019 levels), but has since slowly improved, albeit still trending below 50% of last year's occupancy rates. For the 12-months ending October 2020, the District's occupancy rate stood at 40%, compared to 76.5% for 2019.

HOTEL ROOMS UNDER CONSTRUCTION2

1,414

AS OF DECEMBER 2020

Between 2018 and 2019, the average daily rate (ADR) and revenue per available room (RevPAR) in the city increased by 2.1% and 0.7%, respectively, with minimal gains resulting from a growing short-term lodging supply. These gains were wiped away in 2020, with a -24.6% decline in ADR and -68.3%

HOTEL OCCUPANCY, ADR, REVPAR, ROOM SUPPLY AND DEMAND $250

$200

$181.90

$100

50 $72.58

$50

39.9%

30 2016

2017 District ADR

2018 District RevPAR

Source: Office of the Chief Financial Officer, Office of Revenue Analysis, DC Economic & Revenue Trends. *12 months ending October 2020.

1. DestinationDC/MMGY Travel Intelligence/Tourism Economics, August 2020 2. Washington DC Economic Partnership (includes major renovations)

2019 District Occupancy

2020*

OCCUPANCY %

$150

HOSPITALITY DEVELOPMENT

HOTEL OCCUPANCY & RATES YEAR-OVER-YEAR CHANGE 10% 0% -10% -20% -30%

-33.8%

-40% -50%

-54.2%

-60% -70% -80% Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20

District Occupancy

District ADR

Source: Office of the Chief Financial Officer, Office of Revenue Analysis, DC Economic & Revenue Trends.

drop in RevPAR through October compared to the same period in 2019. District hotel demand continues to be influenced by home-sharing services (Airbnb, VRBO, FlipKey, etc.), despite active home-sharing rentals in the city decreasing by an average of -2.2% each quarter over the past three years. Most of these lodging options (76%) offer entire home rentals. As of mid-October, at least 115 hotels welcomed guests in the city. Mayor Muriel Browser deemed hotels to be essential businesses, though some have closed temporarily in light of drastic reductions in visitation this year. At the same time, at least four new hotels opened in the District in 2020: CitizenM, Riggs Washington DC, AC

Hotel DC Convention Center, and Thompson Washington DC. The NoMa area will see a substantial amount of hotel growth in the coming years, with the Meininger, Mob Hotel, and CitizenM expected to deliver in the next couple of years. Capitol Riverfront and the Southwest Waterfront are also projected to see an increase in hotel supply, with the Cambria and Pendry Hotels delivering over the same time frame. Continued hotel construction suggests that developers are confident in the District’s tourism market, despite recent fluctuations during COVID-19. The prevalence of hotel deliveries this year and those projected in the years ahead show faith in the V-shaped recovery forecasted by DestinationDC earlier this year.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

HOSPITALITY DEVELOPMENT

DOMESTIC VISITATION TO WASHINGTON, DC 25

16.8

16.1

15.5

18.3

17.4

20.8

20.0

19.3

20.0 17.0

40%

20%

11.0 10

-20% 5

ANNUAL GROWTH

MILLIONS OF VISITORS

60%

22.8

21.9

-40%

-60%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020*

2021*

2022*

Y-o-Y Growth

Domestic Visitors Source: DestinationDC (*projections)

The District received 24.6 million domestic and international visitors in 2019—a 3.4% increase from 2018. Domestic and international tourists accounted for $8.2 billion in spending throughout the year, contributing $896 million to local tax revenue, a 5.3% year-over-year gain.3 These numbers do not reflect the drastic downturn of visitation

to the city in the wake of the COVID-19 pandemic. After years of growth in tourism, visitation to the city halted as international and domestic travel was restricted or completely barred for most of 2020. A baseline forecast for domestic visitor volume shows at least a 50% drop this year, before a V-shaped recovery commencing between 2021 and 2022—

SMITHSONIAN VISITATION (DC MUSEUMS ONLY) 22.1 M

20,000,000 4.2 M

MILLIONS OF VISITORS

4,000,000 3.3 M

3.2 M

3,000,000

2.8 M

2.0 M

2,000,000

1.7 M

1,000,000 387k

Total Visits

American Art*

321k

Portrait Gallery 2019

Source: Smithsonian. *Includes Renwick Gallery.

3. DestinationDC 4. DestinationDC

572k

368k

African American History & Culture

267k

Air & Space 2020

310k

American History

Natural History

HOSPITALITY DEVELOPMENT

The metro area’s primary driver for room-night demand is the Federal Government. Steady tourism and travel related to government activity have historically sustained hotel demand, even in the worst economic downturns. This fact is reflected in the tight connection of the area’s ADR growth and the federal annual per-diem rate. However, the pandemic has upended the conventional market assumptions. The Federal Government’s travel per-diem rates increased from $94 to $96 in 2020, suggesting an additional 2.1 percent ADR growth in the metro area between 2019 and this year. However, this is extremely unlikely, and ADR growth for the full calendar year will likely be deeply negative as it has been since spring.

assuming no additional lockdowns occur and widespread vaccination in 2021.4 An increase in federal jobs in 2020 is a relative bright spot for the future recovery of visitation to the District, as employment in the sector is critical to the long-term viability of the city’s hospitality industry. Regional airport traffic to Reagan National, Dulles, and Baltimore/Washington International (BWI) Marshall airports was severely depressed in the second and third quarters of 2020. Prior to the crisis hitting in March, the region had a five-year average of 18,125,000 airline passengers each quarter. Passenger traffic decreased to 13,405,000 in the first quarter of 2020, before plummeting to 2,248,000 in Q2 and 5,453,000 in Q3. Dulles and Reagan National airports, which primarily serve the international and domestic business travel markets, respectively, have been especially affected, while BWI Marshall airport (which has a much larger share of domestic leisure travel) has performed slightly better.

Looking ahead to 2021 and beyond, we expect the 2020 fallwinter spike in COVID-19 cases to prolong the recovery of the local hospitality industry. Widespread inoculation is the single most important factor to the recovery of the hospitality industry going forward. Additionally, with the presidential election decided, the future has become slightly clearer.

REGIONAL AIRPORT PASSENGER TRAFFIC 19.4M

20.0M

19.5M

20.2M

19.9M

18.4M 16.1M

15.6M

20.2M 19.3M

18.7M 16.1M

MILLIONS OF VISITORS

13.4M

5.5M

5 2.2M

Q1-17

Q2-17

Q3-17

2017

Q4-17

Reagan National

Q1-18

Q2-18

Q3-18

2018

Q4-18

Q1-19

Dulles International

Q2-19

2019

Q3-19

Q4-19

Q1-20

Q2-20

2020

Q3-20

Baltimore/Washington International

Source: Metro Washington Metropolitan Airports Authority, Delta Associates December 2020. Total passenger enplanements and deplanements.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

HOSPITALITY DEVELOPMENT

Entertainment and Sports Arena was built in 2018 on the St. Elizabeths East Campus.

HOME SHARING RENTAL GROWTH (ACTIVE RENTALS, QUARTER-OVER-QUARTER CHANGE) 4%

3.6%

-2%

-4%

-6%

-8%

-10% Q1 2018

Q2 2018

Q3 2018

Q4 2018

Source: AirDNA (data retrieved on March 7, 2021). Includes AirBNB and VRBO rentals.

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

HOSPITALITY DEVELOPMENT

HOTEL ROOM DEVELOPMENT (DECEMBER 2020) 3000 2500

570

1000

844

1,055

1500

1,275

2000

500 0

2004

2005

2006

2007

2008

2009

2010

2011

2012

GROUNDBREAKING

2013

2014

COMPLETED

2015

2016

2017

2018

2019

2020

2021*

2022*

PROJECTED DELIVERIES*

*Projections based on targeted delivery dates of projects under construction as of December 2020.

HOSPITALITY DEVELOPMENT (DECEMBER 2020) PROJECTS

HOSPITALITY SF

ROOMS

NET NEW ROOMS*

141

21,628,536

21,193

9,711

2010

865,000

1,614

2011

134,100

204

2012

64,000

356

2013

282,070

426

305

2014

1,540,863

1,795

2015

425,465

1,203

546

2016

1,763,835

1,352

1,023

COMPLETED (SINCE 2001)

2017

1,533,241

2,527

1,339

2018

1,214,488

913

648

2019

882,650

1,270

585

2020

610,125

1,275

739

1,910,949

1,414

1,178

UNDER CONSTRUCTION 2021 DELIVERY

497,610

844

608

2022 DELIVERY

656,339

570

2023+ DELIVERY

757,000

PIPELINE

3,515,819

5,867

5,368

NEAR TERM

427,783

986

LONG TERM

3,100,036

4,881

4,382

206

27,055,304

28,474

16,257

TOTAL

Conceptual rendering of the National Museum of the U.S. Navy courtesy of Naval History and Heritage Command

* Net new rooms only reflect rooms in hotel projects or rooms added/removed in redevelopment projects (rooms are removed from inventory based on project's status).

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

H UT

SO TA KO DA

E AV

14TH ST.

21 U ST.

VE DA

LAN

E IS

VE KA

G TO N

HOSPITALITY

E AV

GEORGIA AVE

TIC EC NN

TT SE U

CH A

SS A

ROCK CREEK PARK

M E

AL RI O M

Y W PK

2 17

VIRGINIA 66

H ST.

UNION STATION

8 NATIONAL MALL

VIRGINIA

27 13

6 14

E. CAPITOL ST.

U.S. CAPITOL

25 18

FORT DUPONT PARK

M ST.

16NATIONALS 22 3 29 PARK 24

395

LVA N

AV E

23 1 M

M NATIONAL AIRPORT

Alexandria

M A RTIN LUTHER KING

JR. AV E.

A AV

BAM

ALA

All project locations are approximate.

DEVELOPMENT PIPELINE PROJECT

WARD

LOCATION

DEVELOPER(S)

HOSPITALITY SF

HOTEL ROOMS

EST. VALUE ($M)1

DELIVERY2

252

$120

Q3 20

$41

TOP HOSPITALITY PROJECTS COMPLETED (Q3 2019–Q4 2020) 1

555 E Street (CitizenM)

555 E St., SW

CityPartners / Paramount Development Corp. / Potomac Investment Properties / Adams Investment Group / DC Strategy Group

130,000

AC Hotel

1112 19th St., NW

OTO Development

125,700

219

Thompson D.C. Hotel

227 Tingey St., SE

Brookfield Properties / JW Capital Partners / Geolo Capital

114,800

225

Q4 19 Q1 20

Hotel Zena

1155 14th St., NW

Pebblebrook Hotel Trust

106,300

191

$25

Q4 20

Yotel

415 New Jersey Ave., NW

BLDG Management / Metrovest Equities

103,000

373

$45

Q4 20

AC Hotel Washington D.C. Convention Center

601 K St., NW

Douglas Development Corporation

96,800

234

$47

Q3 20

The Reach

2700 F St., NW

The John F. Kennedy Center for the Performing Arts

72,000

$175

Q3 19

National Children's Museum

1300 Pennsylvania Ave., NW

National Children's Museum

33,000

$15

Q1 20

Franklin School (Planet Word)

13th & K Sts., NW

Franklin School Development LLC / DMPED

26,300

$35

Q4 20

$900

TOP HOSPITALITY PROJECTS UNDER CONSTRUCTION 10

National Air and Space Museum

The National Mall

Smithsonian

687,000

ART Place at Fort Totten (Phase II)

5300 South Dakota Ave., NE

Morris & Gwendolyn Cafritz Foundation

201,000

NoMa CNTR

1005 1st St., NE

Perseus TDC / Four Points / Buccini Pollin Group / Sunwater Management

184,400

235

$330

Q4 22

Armature Works

1200 3rd St., NE

Trammell Crow Company / High Street Residential / MetLife

147,000

204

$400

Q1 22

118,000

247

$93

Q3 21

80,000

131

$1,150

Q3 22

154

$58

Q1 21

Holiday Inn Express

303–317 K St., NW

Habte Sequar

The Wharf (Phase II) - Pendry Hotel

Southwest Waterfront

Hoffman & Associates / Madison Marquette

Cambria Hotel

69 Q St., SW

Donohoe Companies

77,500

The Milken Center for Advancing the American Dream

1501–1505 Pennsylvania Ave., NW & 730 15th St., NW

Akridge / Milken Family Foundation

70,000

AC Marriott

867 New Jersey Ave., SE

Greystar Development / J.P. Morgan Asset Management / Oxford Properties Group

World War I Memorial

Pershing Park

Doughboy Foundation / U.S. WWI Centennial Commission

2024 Q4 22

2024 200

Q3 21 $42

Q4 21

$275

2025

TOP HOSPITALITY PROJECTS IN THE PIPELINE 20

Latham Hotel

3000 M St., NW

Thor Equities

140,000

256

Bond Bread

2114 Georgia Ave., NW

EDENS / Menkiti Group / Fivesquares Development / Howard University

135,000

180

Parcel F1

N Place & 1 1/2 St., SE

Brookfield Properties

66,400

2024

100 V Street (Phase I)

1 , 2 , T & V Sts., SW

Akridge

66,100

180

45 Q Street

45 Q St., SW

D.B. Lee Development & Construction

62,000

190

Waterfront Station II

1000 4th St., SW

Hoffman & Associates / CityPartners / Affordable Housing Developers / Paramount Development Corp. / DMPED

Arlo DC

333 G St. & 704 3rd St., NW

Quadrum Global

421

9,300

2023 $165

citizenM Hotel

1222 1 St., NE

Altus Realty Partners

290

280 12th Street

280 12th St., SW

Pacific Star Capital

163

National Museum of the U.S. Navy

Washington Navy Yard

Navy History and Heritage Command

2024

2023

2022 $450

2025

1) May include non-hospitality components & pipeline values may include additional phases ($ in millions) 2) Delivery date may reflect phase I delivery or final phase delivery for pipeline projects.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS

280 12TH STREET

Image courtesy of CityPartners

WARD 6

555 E STREET

LOCATION:

280 12th Street, SW Pacific Star Capital ARCHITECT(S): BBGM STATUS: Pipeline (Long Term)

LOCATION:

DEVELOPER(S):

DEVELOPER(S): CityPartners / Paramount Development Corp. /

555 E Street, SW

SPECS: Plans call for an 11-story, 163-room hotel on the site. Ingram Texas Partners

LEED:

DC Strategy Group / Potomac Investment

ARCHITECT(S): FXCollaborative CONTRACTOR(S):

LLC purchased a 0.59-acre lot from the GSA in May 2019 for $4.1 million.

Donohoe Construction Gold EST. VALUE: $120 million STATUS: Completed TARGETED DELIVERY: Q3/Q4 2020 SPECS: 555 E Street features two towers sitting atop a retail base and three levels of underground parking. One tower is home to the District’s first 252-room CitizenM hotel (October 2020 opening), and the other tower offers 194 rental apartments (58 units for seniors) and 10,500 SF of retail space.

Image courtesy of WDG Architecture

WARD 2

AC HOTEL

WARD 6

AC HOTEL WASHINGTON D.C. CONVENTION CENTER

LOCATION:

1112 19th Street, NW OTO Development ARCHITECT(S): WDG Architecture CONTRACTOR(S): Lendlease LEED: Silver EST. VALUE: $41 million STATUS: Completed TARGETED DELIVERY: Q4 2019

LOCATION:

DEVELOPER(S):

SPECS: The former site of a Smith & Wollensky restaurant was redeveloped into

SPECS: The site of a small parking lot and two-story building, adjacent to the Association of American Medical Colleges building, was redeveloped into a 13-story, 234-room AC Hotel by Marriott. The hotel features 15,000 SF of restaurant, bar, and lounge space.

a 219-room AC Hotel by Marriott. Amenities include lounge and bar, club room, meeting room, fitness center, and a rooftop terrace.

601 K Street, NW Douglas Development Corporation ARCHITECT(S): FILLAT + Architecture CONTRACTOR(S): CBG Building Company EST. VALUE: $47 million STATUS: Completed TARGETED DELIVERY: Q3 2020

DEVELOPMENT HIGHLIGHTS Image courtesy of Trammell Crow

WARD 2

ARLO DC LOCATION: DEVELOPER(S): ARCHITECT(S): STATUS:

WARD 6

ARMATURE WORKS 333 G Street & 704 3rd Street, NW Quadrum Global Architecture Inc. Pipeline (Long Term)

LOCATION:

1200 3rd Street, NE

DEVELOPER(S): Trammell Crow Company / High Street Residential /

MetLife Shalom Baranes Associates / Leo A Daly CONTRACTOR(S): Clark Construction Group LEED: Silver EST. VALUE: $400 million STATUS: Under Construction TARGETED DELIVERY: Q2 2022 ARCHITECT(S):

SPECS: Plans for 333 G Street and 704 3rd Street call for a 421-room Arlo Hotel. A

new 12-story tower will be built behind the historic Harrison apartment building. The Harrison structure (c. 1888–1890) will be rehabilitated and incorporated into the development.

SPECS: Armature Works is a 2.43-acre redevelopment site adjacent to the NoMa-Galludet U. Metrorail Station. The development will contain 635 residential rental units, up to 60,000 SF of retail space, and a 204-room hotel. These components will be woven together by a series of urban open spaces and pocket parks totaling approximately one acre.

CAMBRIA HOTEL

Image courtesy of Four Points

Image courtesy of Donohoe Companies

WARD 6

WARD 2

FRANKLIN SCHOOL (PLANET WORD)

LOCATION:

69 Q Street, SW Donohoe Companies ARCHITECT(S): BBGM CONTRACTOR(S): Donohoe Construction LEED: Silver EST. VALUE: $58 million STATUS: Under Construction TARGETED DELIVERY: Q1 2021

LOCATION:

DEVELOPER(S):

925 13th Street, NW Franklin School Development LLC / DMPED ARCHITECT(S): Beyer Blinder Belle Architects & Planners CONTRACTOR(S): Whiting-Turner Contracting Co. LEST. VALUE: $35 million STATUS: Completed TARGETED DELIVERY: Q4 2020

SPECS: Nine parcels, located on the northwest corner of Q & Half Streets, SW, were assembled to build a nine-story, 154-room Cambria Hotel. The hotel includes a ground-floor restaurant and rooftop bar with a 3,500-SF terrace. The hotel opened in February 2021.

SPECS: The historic Franklin School was renovated and restored and is now home to Planet Word—the world’s first voice-activated museum. The museum includes several galleries (including a 3,100-SF gallery in the Great Hall), a 22-foot-high wall of words, classrooms, a 150-seat auditorium, a restaurant, and a 1,100-SF terrace.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS Image courtesy of The Smithsonian

WARD 6

WARD 2

NATIONAL AIR AND SPACE MUSEUM

HOLIDAY INN EXPRESS LOCATION:

LOCATION:

DEVELOPER(S):

The National Mall Smithsonian ARCHITECT(S): Quinn Evans Architects CONTRACTOR(S): Smoot Construction / Clark Construction / Consigli Construction LEED: Gold EST. VALUE: $900 million STATUS: Under Construction TARGETED DELIVERY: 2022–2024

303–317 K Street, NW Habte Sequar ARCHITECT(S): BBGM CONTRACTOR(S): Kinsley Construction EST. VALUE: $93 million STATUS: Under Construction TARGETED DELIVERY: Q3 2021 SPECS: A new 14-story, 247-room Holiday Inn Express will be built at the corner of 4th & K Streets, NW. The hotel will feature 1,500 SF of meeting space in the penthouse.

SAINT ELIZABETHS EAST (PARCEL 15) Saint Elizabeths East Campus Redbrick LMD / Gragg Cardona Partners ARCHITECT(S): Adjaye Associates / Winstanley Architects & Planners EST. VALUE: $218 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2024

Image courtesy of U.S. World War I Centennial Commission

Image courtesy of Redbrick LMD

WARD 8

SPECS: The 687,000-SF museum will undergo a seven-year renovation, starting with the first phases expected to be completed in 2021/22. Renovations will include replacing the glass curtain wall glazing, removal and replacement of the Tennessee marble façade, and upgrades to all 22 galleries. Additionally, a new vestibule and canopy will be constructed at the north/main public entrance. The museum will remain open during construction. WARD 2

WORLD WAR I MEMORIAL

LOCATION:

DEVELOPER(S):

SPECS: The 4.2-acre Parcel 15 will be redeveloped into a town square surrounded by two residential buildings (288 units), a 125-150-room hotel, a 200,000 SF office building, and up to 56,000 SF of retail space. The site is located adjacent to the Entertainment & Sports Arena and the Congress Heights Metrorail Station.

Pershing Park Doughboy Foundation / U.S. WWI Centennial Commission ARCHITECT(S): GWWO Architects / Joe Weishaar Architects CONTRACTOR(S): Grunley Construction EST. VALUE: $42 million STATUS: Under Construction TARGETED DELIVERY: Q4 2021 SPECS: The National World War I Memorial will be built on the existing 1.8-acre Pershing Park, located along Pennsylvania Avenue at 14th & 15th Streets. The design will feature a bronze sculpture (designed by Sabin Howard) entitled “A Soldier's Journey” that will span nearly 60 feet and feature 38 soldiers and human figures; a renovated General John J. Pershing Memorial; and a belvedere area providing additional information about the memorial and WWI.

QUALITY OF LIFE DEVELOPMENT IN WASHINGTON, DC

Image courtesy of 11th Street Bridge Park

By Jill Schoenfeld, Research Analyst, Washington DC Economic Partnership

Given the challenges presented by the Covid-19 pandemic, “quality of life” spaces, defined as serving education, medical, and community purposes, have never proved more essential.

RESIDENTS LIVING WITHIN A 10-MINUTE WALK OF A PARK 1

MILES OF SLOW STREETS 2

MILES OF BICYCLE LANES3

NATIONAL AVERAGE IS 55%

DEFINED AS 15 MPH & LOCAL TRAFFIC ONLY

INCLUDING 17 MILES OF PROTECTED LANES

98%

26+

While healthcare facilities continue to serve an indisputably critical role in society today, civic and recreational assets have also provided vital services and helped to maintain some normalcy during this trying time. “Social infrastructure” remains crucial to facilitating interpersonal connections, albeit socially distant, and enhancing quality of life, while proximity to open space is strongly tied to life expectancy and other health outcomes.5 Since 2010, the District has seen the delivery of more than 15.8 million SF of new and renovated “quality of life” space, including more than one million SF in 2020.6 Much of the square footage produced during the past decade has served educational uses, but with significant investments by the District government, current and planned projects are increasingly focused on developing and expanding healthcare and community facilities.

HEALTH CARE Medical space capacity will grow significantly in the District with several major developments underway and in the pipeline. Currently under construction is the Children’s National Research

90.7

ANNUAL VISITS TO DC PUBLIC LIBRARIES 4

4 M

and Innovation Campus, a 12-acre site on the former Walter Reed Army Medical Center Campus, with Phase I scheduled to open in Q1 2021. Children’s National will relocate its Rare Disease Institute to the new campus, which will also allocate 32,000 SF for Johnson & Johnson’s JLABS to incubate and accelerate bio- and health-tech firms as part of the Blue Knight initiative. This effort, a collaboration between JLABS and the federal Biomedical Advanced Research and Development Authority (BARDA), will support companies working to address infectious diseases and other global health security threats.7 The innovation campus will also become home to a new 12,000 SF biomedical research facility for Virginia Tech.8 Two major medical facilities are also planned at the St. Elizabeths East Campus. Beginning in 2023, Whitman-Walker Health’s new facility will offer primary, behavioral, dental, substance misuse treatment, and youth services, along with a pharmacy and administrative space.9 George Washington University (GWU) and Universal Health Services plan to deliver a new ambulatory center the same year, before opening a 24hour urgent care center and 136-bed community hospital with a

1. Center for City Park Excellence, Trust for Public Land 2. ddot.dc.gov/release/district%E2%80%99s-thriving-slow-street-program-expands-26-miles 3. opendata.dc.gov/pages/roadway-centerlines 4. dclibrary.org/sites/default/files/ DCPL_NextLibris_111020-Web.pdf 5. Klinenberg, E. Palaces for the People: How Social Infrastructure Can Help Fight Inequality, Polarization, and the Decline of Civic Life. Crown 2018; Yañez, E. More Parks, Longer Lives. Parks & Recreation Magazine. Nov. 19, 2020. National Recreation and Park Association. nrpa.org/parks-recreation-magazine/2020/december/more-parks-longer-lives. 6. Washington DC Economic Partnership. 7. See jlabs.jnjinnovation.com/blue-knight. 8. Children’s National Hospital, Virginia Tech Announce Partnership for New Children’s National Research & Innovation Campus. Nov. 14, 2019. childrensnational.org/news-and-events/childrens-newsroom/2019/childrens-nationalannounces-partnership-with-virginia-tech. 9. Office of the Mayor. Mayor Bowser Announces Whitman-Walker Health to Locate on St. Elizabeths East Campus, Delivering New Facility to Ward 8. Nov. 14, 2019. mayor.dc.gov/release/mayorbowser-announces-whitman-walker-health-locate-st-elizabeths-east-campus-delivering-new.

QUALITY OF LIFE DEVELOPMENT

Level 3-plus trauma center in Fall 2024.10 GWU’s hospital, which will replace an existing District-owned facility, will also provide maternal health, obstetric, and newborn services, including a Level 2 neonatal intensive care unit.11 Construction of another university-sponsored project, the Medstar Georgetown University Hospital Pavilion, is taking place alongside renovation of the existing hospital onsite and estimated for completion in 2023.12 Meanwhile, Howard University anticipates delivering a new hospital in 2026. Managed in partnership with Adventist Healthcare, the facility will contain 225 beds, a Level 1 trauma center, and five Centers of Excellence (sickle cell, women’s health, oral health, trauma and violence prevention, and substance abuse). The District government will support construction with more than $276 million from various public financing programs.13 While the District is seeing significant public and private investment to establish and build out hospitals, outpatient facilities are undergoing renovation as well. One notable modernization project completed in Fall 2020 brought $26 million in upgrades to 1145 19th Street, a medical office building in the Golden Triangle/ CBD offering radiology, surgery, and laboratory testing services.

QUALITY OF LIFE DEVELOPMENT (DECEMBER 2020) PROJECTS

323

24,492,561

2010

1,186,818

2011

1,193,187

2012

1,237,579

2013

1,322,988

2014

1,528,010

2015

1,727,039

2016

2,379,575

2017

1,556,544

2018

962,210

2019

1,557,702

2020

1,147,174

UNDER CONSTRUCTION

1,535,662

2021 DELIVERY

1,030,347

2022+ DELIVERY

505,315

PIPELINE

5,283,661

NEAR TERM

2,923,249

LONG TERM

2,360,412

401

31,331,884

COMPLETED (SINCE 2001)

TOTAL

QUALITY OF LIFE DEVELOPMENT (DECEMBER 2020, SF IN THOUSANDS) 3500 3000 2500

1,147

1500 1000

2004

2005

2006

2007

2008

2009

2010

2011

GROUNDBREAKING

2012

2013

2014

COMPLETED

2015

2016

2017

2018

2019

2020

122

500

1,030

2000

2021*

2022*

PROJECTED DELIVERIES*

* projections based on targeted delivery dates of projects under construction as of December 2020

10. Office of the Mayor. Mayor Bowser Announces Agreements for Two New Hospitals to Bring Equity to DC’s Health Care System. April 29, 2020. mayor.dc.gov/release/mayor-bowser-announces-agreements-two-new-hospitals-bring-equitydc’s-health-care-system. 11. See newhospitals.dc.gov/page/new-hospital-at-st-elizabeths-east-0. 12. See buildingmedicalexcellence.com. 13. See newhospitals.dc.gov/page/howard-university-hospital-project.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

QUALITY OF LIFE DEVELOPMENT

LIBRARIES

PARKS/OPEN SPACE

Libraries have received renewed focus following the DC Public Library’s November 2020 release of Next Libris. The ten-year master facilities plan will guide efforts to relocate and rebuild certain branches and construct additional facilities with the goal of ensuring equitable access throughout the District.14 The initiative coincides with an ongoing modernization effort that reached a major milestone in September 2020 with the highly anticipated reopening of the modernized Martin Luther King Jr. Memorial Library. Having delivered a new or renovated facility every year since 2016, the library system continues to keep pace with plans to complete the Southeast Library’s redesign and upgrades to the Southwest Library in early 2021, before opening the new Lamond Riggs Library in 2022.

Among the 100 most populated cities in the U.S., the District is already notably accessible with respect to open space, as 98% of residents can walk to a park in ten minutes.15 Nonetheless, in November 2020 the District launched “Ready2Play,” a master planning process guided by public engagement to create a vision and identify corresponding strategies for the District’s parks and open space over the next two decades.16 Individual parks also continue to undergo renovations, with Phase I upgrades completed at Eastern Market Metro Park in July 2020 and the launch of Phase II in October, along with improvements to Franklin Square by the National Park Service beginning in the summer. In early 2021, the District will deliver a new Lafayette Recreation Center to expand activity and administrative space, as well as improve stormwater management. Community groups and civic organizations are further complementing these efforts by sponsoring additional projects, as with the opening of Alethia Tanner Park by the NoMa Parks Foundation in June 2020.17 Across the District, the Covid-19 pandemic has encouraged a reimagination and reallocation of the public realm to incorporate a greater number of shared uses in response to changing safety protocols and needs. For example, updated road configurations have introduced slower streets and converted parking lanes into “streateries” to increase common access to space and permit outdoor activities while promoting social distancing.18 If but a small silver lining, the current crisis has presented opportunities to pursue these and other new ways forward for our communities that we may never have realized.

Image of West Elementary School courtesy of Perkins Eastman DC

13. See newhospitals.dc.gov/page/howard-university-hospital-project. 14. Next Libris: Facilities Master Plan 2021-2030 is available at dclibrary.org/sites/default/files/DCPL_NextLibris_111020-Web.pdf. For an overview of the initiative, see dclibrary.org/dclibraryfuture. 15. The Trust for Public Land’s ParkScore index is a composite measure of resident access, park acreage, financial investment, and open space amenities (tpl.org/parkscore/about). For DC’s 2020 ParkScore, see tpl.org/city/washington-district-columbia. 16. Available at ready2playdc.com/what-is-ready2play. 17. See nomaparks.org/nomagreen. 18. Mayor's Office of Community Relations and Services. Mayor Bowser Announces Plans to Open “Streateries” and Lower Citywide Speed Limit as DC Reimagines Roads and Public Space. May 29, 2020. mocrs.dc.gov/release/mayor-bowser-announces-plans-open-streateries-and-lower-citywide-speed-limit-dc-reimagines.

Take care, everywhere Health plans designed for easier access and fewer hassles. There’s no limit to what care can do. Visit UHC.com

003602C6 01/21

■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

H UT

E AV

14TH ST.

AL RI O M Y W PK

VIRGINIA

VE KA

M E

VE DA

LAN

E IS

7 20

H ST. UNION STATION

2 E. CAPITOL ST.

NATIONAL MALL

VIRGINIA

U.S. CAPITOL

27 4 29 18 NATIONALS PARK

FORT DUPONT PARK

M ST.

395

LVA N

AV E

JR. AV E.

1 M

M NATIONAL AIRPORT

Alexandria

M A RTIN LUTHER KING

QUALITY OF LIFE

E AV

U ST.

G TO N

GEORGIA AVE

TIC EC NN

TT SE U

ROCK CREEK PARK

TA KO DA

CH A

SS A

23 E

A AV

BAM

ALA

All project locations are approximate.

DEVELOPMENT PIPELINE PROJECT

WARD

LOCATION

DEVELOPER(S)

QUALITY OF LIFE SF

EST. VALUE ($M)1

DELIVERY2

TOP QUALITY OF LIFE PROJECTS COMPLETED (Q1 2020–Q4 2020) 1

Martin Luther King Jr. Library

9th & G Sts., NW

Jair Lynch Real Estate Partners / DC Public Library

400,000

$212

Q3 20

Eliot-Hine Middle School Modernization

1830 Constitution Ave., NE

Department of General Services / DC Public Schools

143,500

$84

Q4 20

1145 19th Street

1145 19th St., NW

The RMR Group Inc.

130,000

$26

Q3 20

Jefferson Academy

801 7th St., SW

Department of General Services / DC Public Schools

109,000

$78

Q2 20

Georgetown Day School Tenleytown Campus

4203 Davenport St., NW

Georgetown Day School

88,600

CW Harris Elementary School

301 53rd St., SE

Department of General Services / DC Public Schools

84,000

$52

Q3 20

Houston Elementary School Modernization

1100 50 Place, NE

Department of General Services / DC Public Schools

82,500

$55

Q3 20

Thaddeus Stevens School

1050 21st St., NW

Akridge / Argos Group / Department of General Services / DC Public Schools

40,000

$20

Q3 20

Bread for the City

17th & Good Hope Rd., SE

Bread for the City

27,700

$26

Q3 20

Shepherd Park Community Center

7800 14th St., NW

Department of General Services / Department of Parks and Recreation

20,000

$13

Q3 20

Q4 20

TOP QUALITY OF LIFE PROJECTS UNDER CONSTRUCTION 11

Medstar Georgetown University Hospital Pavilion

3800 Reservoir Rd., NW

MedStar Georgetown University Hospital / Trammell Crow Company

497,000

$560

Q1 23

Children's National Research & Innovation Campus

7144 13th Place, NW

Children's National Medical Center

380,000

$250

Q1 21

Banneker Academic High School

10th & R Sts., NW

Department of General Services / DC Public Schools

175,000

$152

Q3 21

Capitol Hill Montessori at Logan

215 G St., NE

Department of General Services / DC Public Schools

100,000

$70

Q3 21

West Elementary School

1335 Farragut St., NW

Department of General Services / DC Public Schools

88,600

$71

Q3 21

KIPP School (Phase III)

4801 Benning Rd., SE

KIPP DC

84,000

$21

Q2 21

Eaton Elementary School Modernization

3301 Lowell St., NW

Department of General Services / DC Public Schools

52,600

$67

Q3 21

Southwest Library

900 Wesley Place, SW

DC Public Library

22,000

$18

Q1 21

Lafayette Recreation Center

5900 33rd St., NW

Department of General Services / Department of Parks & Recreation

3,300

Q1 21

Franklin Park

13th, 14th, I, & K Sts., NW

Department of General Services / National Park Service

$18

Q3 21

TOP QUALITY OF LIFE PROJECTS IN THE PIPELINE 21

Howard University Hospital (Phase I)

501 Bryant St., NW

Howard University

478,000

$450

2026

555 Pennsylvania Avenue

555 Pennsylvania Ave., NW

John Hopkins University

400,000

$200

2023

Saint Elizabeths East (New Hospital)

2730 Martin Luther King, Jr. Ave., SE

Government of the District of Columbia

322,000

$326

2024

3999 8th Street

3999 8th St., SE & 700 Yuma St., SE

KIPP DC

158,000

$105

2022

Skyland Town Center (Block 1)

Alabama Ave. & Naylor Rd., SE

Rappaport / WC Smith

131,300

$72

2023

New Residence Hall

Catholic University

104,000

$35

2023

New Fort Dupont Ice Arena

3779 Ely Place, SE

Department of General Services

78,000

$25

2023

Smothers Elementary School Modernization

4400 Brooks St., NE

Department of General Services

66,100

$55

2022

400 I Street

400 Eye St., SW

Bozzuto / Dantes Partners / Westminster Presbyterian Church

18,513

11th Street Bridge Park

11th Street Bridge

Building Bridges Across the River / DC Department of Transportation

2024 $74

2024

1) may include non-quality of life components & pipeline values may include additional phases ($ in millions) 2) delivery date may reflect phase I delivery or final phase delivery for pipeline projects.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS

11TH STREET BRIDGE PARK LOCATION:

Image by Stacie West/NoMa Parks Foundation

Image courtesy of 11th Street Bridge Park

WARDS 6/8

WARD 5

ALETHIA TANNER PARK

11th Street Bridge

LOCATION:

227 Harry Thomas Way, NE NoMa Parks Foundation ARCHITECT(S): Nelson Byrd Woltz / Studio 27 CONTRACTOR(S): Forrester Construction Company EST. VALUE: $27 million STATUS: Completed TARGETED DELIVERY: Q2 2020

DEVELOPER(S): Building Bridges Across the River /

DEVELOPER(S):

DC Department of Transportation Olin / OMA CONTRACTOR(S): WRA STATUS: Pipeline (Near Term) EST. VALUE: $74 million TARGETED DELIVERY: Q2 2024 ARCHITECT(S):

SPECS: The 11th Street Bridge Park, a public/private partnership, will be the

District's first elevated public park and will be erected on the existing piers that held up the old 11th Street Bridge. The park will will be the length of three football fields and include programming such as an amphitheater, urban agriculture, café, hammock grove, and classrooms to teach students about river systems. The Environmental Education Center will feature green infrastructure and solar, as part of a $5 million capital campaign gift from Exelon, Pepco, and Constellation.

SPECS: The 2.5-acre Alethia Tanner Park is located north of New York Avenue, bounded by Harry Thomas Way, NE, on the west and the Metropolitan Branch Trail to the east. The design includes an open green lawn, stage area, a playground, a dog park, a small café kiosk, and connections to the MBT.

Image courtesy of Perkins Eastman

WARD 6

BANNEKER ACADEMIC HIGH SCHOOL

WARD 4

CHILDREN'S NATIONAL RESEARCH & INNOVATION CAMPUS

LOCATION:

10th & R Streets, NW Department of General Services / DC Public Schools ARCHITECT(S): Perkins Eastman DC CONTRACTOR(S): MCN Build LEED: Platinum EST. VALUE: $152 million STATUS: Under Construction TARGETED DELIVERY: Q3 2021

LOCATION:

DEVELOPER(S):

SPECS: A new 175,000 SF, 800-student capacity Banneker Academic High School will be built on the site of the former Shaw Junior High School. The project is seeking LEED Platinum (minimum of Gold) and NetZero and will feature a green roof, solar panels, geothermal wells, and numerous other sustainable elements.

SPECS: The 380,000 SF medical research facility will be located on 11.68 acres of the former Walter Reed Medical Center. It is the first in the nation dedicated to pediatric research focusing on research devoted to complex and rare genetic diseases and a primary care clinic. The 160,000 SF Phase I will open in early 2021 in a portion of the Research and Innovation Building. Select Partners include Johnson & Johnson Innovation (JLABS), Virginia Tech, the National Institutes of Health (NIH), Food & Drug Administration (FDA), and the U.S. Biomedical Advanced Research and Development Authority (BARDA).

7144 13th Place, NW Children's National Medical Center ARCHITECT(S): Elkus Manfredi Architects / Array Architects CONTRACTOR(S): Smoot Construction DC / Suffolk Construction LEED: Silver EST. VALUE: $250 million STATUS: Under Construction TARGETED DELIVERY: Q1 2021

DEVELOPMENT HIGHLIGHTS Image courtesy of Bonstra | Haresign Architects

WARD 3

EATON ELEMENTARY SCHOOL MODERNIZATION

WARD 5

FATHERS RESIDENCE & MISSION HOUSE

LOCATION:

DEVELOPER(S):

3301 Lowell Street, NW Department of General Services / DC Public Schools ARCHITECT(S): cox graae + spack architects CONTRACTOR(S): Grunley Construction / GCS-Sigal LLC LEED: Platinum EST. VALUE: $67 million STATUS: Under Construction TARGETED DELIVERY: Q3 2021

DEVELOPER(S):

3001 4th Street, NE Missionary Society of St. Paul the Apostle ARCHITECT(S): Bonstra | Haresign Architects CONTRACTOR(S): Coakley & Williams Construction STATUS: Under Construction TARGETED DELIVERY: Q4 2021 SPECS: Situated on an undeveloped parcel immediately to the southwest of the landmarked St. Paul's College campus, the new 29,900 SF Paulist Fathers Residence & Mission House will serve as the Paulists' downsized home. The configuration of the building distinguishes the two-story residential wing (15 units) from the public functions (chapel, refectory, ministry, etc.) of the program.

SPECS: The project consists of modernizing three historic buildings with an adjoining connection in the middle, totaling approximately 52,600 SF. The updated facility will be able to host 490 students. The project, which is seeking LEED Platinum (minimum of Gold) and NetZero status, will feature Geothermal HVAC system and use WELL Building standards as design guidelines.

FRANKLIN PARK LOCATION:

13th, 14th, I, & K Streets, NW

Conceptual image of Howard University Hospital

Image courtesy of DC Department of Parks & Recreation

WARD 2

WARD 1

HOWARD UNIVERSITY HOSPITAL (PHASE I) LOCATION:

501 Bryant Street, NW

DEVELOPER(S): National Park Service / Department of General Services

DEVELOPER(S): Howard University

ARCHITECT(S): Land Collective / Studios Architecture / Olin /

STATUS:

ZGF Architects CONTRACTOR(S): Smoot Construction DC LEED: Gold EST. VALUE: $18 million STATUS: Under Construction TARGETED DELIVERY: Q3 2021

SPECS: The 4.79-acre park will receive numerous upgrades, including an interactive fountain, 43 new trees, a 2,100 SF café, children's play area, and pedestrian mall on the southern end of the site. The park is the National Park Services’ second largest square in the downtown.

Pipeline (Near Term) $450–$600 million TARGETED DELIVERY: 2026 EST. VALUE:

SPECS: The new 225-bed, Level I trauma and academic teaching hospital to be managed by AdventistHealthCare will replace the existing hospital. The project will receive District government support in the form of a $225 million tax abatement, $25 million in public infrastructure, and $26.6 million to support five Centers of Excellence at the new hospital (Sickle Cell, Women’s Health, Oral Health, Trauma and Violence Prevention, and Substance Abuse).

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

DEVELOPMENT HIGHLIGHTS WARD 2

WARD 2

MARTIN LUTHER KING JR. LIBRARY

MEDSTAR GEORGETOWN UNIVERSITY HOSPITAL PAVILION

LOCATION:

DEVELOPER(S):

901 G Street, NW DC Public Library / Jair Lynch Real Estate Partners ARCHITECT(S): Mecanoo / Martinez & Johnson / OTJ Architects CONTRACTOR(S): Smoot Construction DC / Gilbane Building Company LEED: Gold EST. VALUE: $212 million STATUS: Completed TARGETED DELIVERY: Q3 2020

DEVELOPER(S): MedStar Georgetown University Hospital /

Trammell Crow Shalom Baranes Associates / HKS PC CONTRACTOR(S): Clark Construction Group LEED: Silver EST. VALUE: $560 million STATUS: Under Construction TARGETED DELIVERY: Q1 2023 ARCHITECT(S):

SPECS: The existing four-story, 400,000 SF library underwent a major modernization, which added a one-story penthouse/multipurpose event space with a partially covered terrace. The 1st floor includes a “great hall” that serves as an informal performance space; Level A offers a 19,000 SF maker space (“Fab Lab”); the 3rd floor contains a two-story grand reading room; and the 4th floor features a two-story, 300-seat auditorium.

NEW RESIDENCE HALL Catholic University Catholic University ARCHITECT(S): Perkins Eastman DC CONTRACTOR(S): Manhattan Construction Company EST. VALUE: $35 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2023

SPECS: The six-story, 497,000 SF medical facility hospital pavilion is being built on an existing parking lot. Programmatic highlights of the new pavilion include 32 operating rooms, a 32-treatment bay emergency department, 156 private patient rooms, and a new rooftop helipad.

Conceptual rendering

WARD 5

WARD 8

SAINT ELIZABETHS EAST (NEW HOSPITAL)

LOCATION:

DEVELOPER(S):

SPECS: The proposed four-story, 104,000 SF residence hall will be built infront of Opus Hall and include 360 beds and accommodate traditional-style double rooms for first year students, Resident Advisor units, lounges and study spaces, and a small chapel.

3800 Reservoir Road, NW

2730 Martin Luther King, Jr. Avenue, SE Government of the District of Columbia EST. VALUE: $326 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2024 SPECS: The northern portion of the St. Elizabeths East Campus (Parcel 2) will be redeveloped into a six-story community hospital, 24-hour urgent care center, and ambulatory care clinic. The 136-bed hospital, to be managed by George Washington University and Universal Health Services, will be a Level 3-plus trauma center and offer a Level 2 neonatal intensive care unit. This hospital will replace United Medical Center (UMC) located on Southern Avenue.

DEVELOPMENT HIGHLIGHTS

SHEPHERD PARK COMMUNITY CENTER LOCATION:

Image courtesy of Coakley Williams

Image courtesy of DC Department of Parks & Recreation

WARD 4

WARD 7

SMOTHERS ELEMENTARY SCHOOL MODERNIZATION

7800 14th Street, NW

LOCATION:

4400 Brooks Street, NE Department of General Services ARCHITECT(S): DLR Group CONTRACTOR(S): Coakley & Williams Construction / Chiaramonte Construction Company LEED: Gold EST. VALUE: $55 million STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2022

DEVELOPER(S): Department of General Services /

DEVELOPER(S):

Department of Parks and Recreation BELL Architects CONTRACTOR(S): MCN Build LEED: Gold EST. VALUE: $13 million STATUS: Completed TARGETED DELIVERY: Q3 2020 ARCHITECT(S):

SPECS: The new 20,000 SF center is an addition to the existing Shepherd Elementary School and offers a gymnasium, multipurpose room, fitness center, storage space, and bathrooms for both elementary students and adults.

SPECS: The modernization project includes site improvements, renovations to the existing building, and two new additions in anticipation of an increased student population serving pre-kindergarten through 5th grade. The renovations will increase the building area from 43,400 SF to 66,100 SF and include a new gymnasium, kitchen, and rooftop multipurpose area.

Image courtesy of Perkins + Will

WARD 6

SOUTHWEST LIBRARY 900 Wesley Place, SW DC Public Library ARCHITECT(S): Perkins + Will CONTRACTOR(S): Turner Construction Company LEED: Gold EST. VALUE: $18 million STATUS: Under Construction TARGETED DELIVERY: Q1 2021

WARD 2

THADDEUS STEVENS SCHOOL

LOCATION:

DEVELOPER(S):

DEVELOPER(S): Department of General Services / DC Public Schools /

SPECS: The new two-story, 22,000 SF Southwest Library will replace the existing branch library and feature community meeting rooms, three conference rooms, four study rooms, an outdoor reading porch, and an “innovation lab” with 3-D printers. A $960,000 DOEE grant funded solar panels and battery storage.

1050 21st Street, NW

Akridge / Argos Group OTJ Architects CONTRACTOR(S): James G. Davis Construction Corporation LEED: Platinum EST. VALUE: $20 million STATUS: Completed TARGETED DELIVERY: Q3 2020 ARCHITECT(S):

SPECS: Thaddeus Stevens School (c.1868), a historic four-story, 40,000 SF masonry structure, underwent a $20 million renovation and re-opened as an infant and toddler child development center and an expansion site for the School Without Walls.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

NEIGHBO

ORHOOD DEVELOPMENT

BUZZARD POINT SAINT ELIZABETHS EAST

NEIGHBORHOOD DEVELOPMENT

BUZZARD POINT Interactive Map: wdcep.co/BuzzardPt

PROJECT STATUS ■ Completed since 2016 ■ Under Construction ■ Pipeline ■ Area of Interest DATA AS OF DECEMBER 2020

A. 1550 1ST STREET

B. CAMBRIA HOTEL

C. 100 V STREET

RESIDENTIAL DEVELOPMENT

1,613 420 3,244

NEW UNITS BUILT SINCE 2016 NEW UNITS UNDER CONSTRUCTION

UNITS IN THE PIPELINE

D. WATERMARK Note: development data only includes projects shown on map above. B. Image courtesy of Donohoe Companies C. Image courtesy of Akridge

E. RIVERPOINT

NEIGHBORHOOD DEVELOPMENT

SAINT ELIZABETHS EAST Interactive Map: wdcep.co/saintE

PROJECT STATUS ■ Completed since 2018 ■ Under Construction ■ Pipeline ■ Area of Interest DATA AS OF DECEMBER 2020

A. PARCEL 2 (NEW HOSPITAL)

B. PARCEL 13 (RESIDENTIAL + RETAIL)

C. RESIDENCES AT ST. ELIZABETHS EAST

DEVELOPMENT SUMMARY • 800 RESIDENTIAL UNITS EXPECTED TO START CONSTRUCTION WITHIN TWO YEARS • NEW WHITMAN-WALKER HEALTHCARE CENTER (PARCEL 17) TO OPEN IN 2023

D. PARCEL 15 (MIXED-USE)

• ENTERTAINMENT & SPORTS ARENA (PARCEL 12) OPENED IN 2018

E. PARCEL 17 (OFFICE + RETAIL)

Note: development data only includes projects shown on map above. A. Conceptual Rendering. B. Image courtesy of Bonstra | Haresign ARCHITECTS. D. Image courtesy of Redbrick LMD.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

APPE

NDIX

METHODOLOGY ACKNOWLEDGMENTS

Image courtesy of WDG Architecture

APPENDIX

THE GOAL OF THE WASHINGTON DC ECONOMIC PARTNERSHIP was to create a comprehensive database of development activity that would help us find answers to the following questions:

Primary Sources • Architects

• Building Permits • What is the make-up of development activity? • Where is the development activity occurring?

• DC Office of the Deputy Mayor for Planning & Economic Development

• What are the trends? • Certificates of Occupancy • How much is being invested in our community?

• DC Office of the Chief Financial Officer

• Developers • DC Office of Zoning • DC Office of Planning

However, before we could begin to collect development information, we had to create a methodology to give us guidance on what data to assemble on each project and which projects to include in our database. For a detailed explanation of our methodology please visit wdcep.co/dcdr-method. 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 2020.

• General Contractors • Project Managers

Secondary Sources • Brokers

• Media & Newspapers

• Business Improvement Districts

• Neighborhood Newsletters & Blogs

information sources

Adding or Updating Information

To capture the most comprehensive inventory, we use a variety of sources to gather information about development activity, and whenever possible, we contact the developers directly to get the most up-to-date and accurate information available and conduct site location visits to verify the project’s status. Often our research uncovers discrepancies in available data on project information such as square footage, cost, number of units, etc. When this occurs, we try to reconcile the differences by speaking directly with parties involved in the development. Some of our sources include:

If you are looking for information about a specific project and you do not see it on our list, it may have been omitted for one of the following reasons. 1. IT DID NOT MEET THE $5 MILLION THRESHOLD OR 10 RESIDENTIAL UNIT MINIMUM 2. WE ARE MISSING A KEY PIECE OF INFORMATION 3. WE HAVE QUESTIONS ABOUT THE VALIDITY OF THE DATA 4. WE MAY NOT KNOW ABOUT IT

To add or update a record in our database, please contact:

Chad Shuskey

Senior Vice President, Programs (202) 661-8674 / cshuskey@wdcep.com

Jill Schoenfeld

Research Analyst (202) 661-8683 / jschoenfeld@wdcep.com

APPENDIX

The Washington DC Economic Partnership would like to thank the following organizations for their contributions to this year’s DC Development Report. 11th Street Bridge Park

Fort Lincoln New Town Corporation

AEDC

Foulger-Pratt Companies

Akridge

Four Points

Armed Forces Retirement Home

Gensler

Banneker Ventures

George Washington University

Bisnow

GlobeSt.com

BKV Group

Gould Property Company

Bonstra | Haresign Architects

H Street CDC

Boston Properties

Hartman-Cox Architects

Bozzuto

Hickok Cole Architects

Brookfield

Hoffman & Associates

Bush Construction

Horning Brothers

Cedar Realty Trust

Howard University

CityInterests Development Partners

Insight Property Group

Coakley Williams Construction Company

James G. Davis Construction Corporation

Coba Properties

JBG Smith

Community Three Development

JD Land

CORE

Jefferson Apartment Group

Davis, Carter, Scott

LCOR

DC Curbed

Lock 7 Development

DC Department of General Services

Lowe Enterprises

DC Department of Parks & Recreation

MCN Build

DC Department of Transportation

Menkiti Group

Donatelli Development

Mid-City

Donohoe Companies

Neighborhood Development Company

Eastbanc

The NHP Foundation

EDENS

NoMa Parks Foundation

Forrester Construction Company

Office of the Deputy Mayor for Planning & Economic Development Paradigm Companies Perkins Eastman DC Perkins&Will Perseus TDC PGN Architects Potomac Investment Properties Prince of Petworth Rappaport Redbrick LMD Roadside Development Rock Creek Property Group Shalom Baranes Associates SmithGroup Smithsonian, National Air & Space Museum Smoot Construction Company of Washington DC Stonebridge Associates Toll Brothers UIP Urban Matters Development Partners Urban Turf Washington Business Journal Washington Post WC Smith WCS Construction WDG Architecture Wilkes Companies

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION

It is the mission of the Washington DC Economic Partnership, a 501(c)3 organization, to promote business opportunities throughout the District of Columbia and to contribute to business retention and attraction activities. The Washington DC Economic Partnership supports businesses and entrepreneurs looking to open, expand, or invest in DC through our programs and services focusing on business development, education of the real estate market, and business opportunities. To learn more about the Washington DC Economic Partnership please visit wdcep.com. © 2021 Washington DC Economic Partnership—Published March 2021

WASHINGTON DC ECONOMIC PARTNERSHIP · 1495 F STREET, NW · WASHINGTON, DC 20004 · (202) 661-8670 · WDCEP.COM

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