Achieving a Mixed-Use Downtown
Last month, we marked an important moment for Downtown DC – Mayor Bowser cut the ribbon on the Elle apartments – the first office-to-residential conversion in Downtown DC. The Elle is a 163-unit residential property with a rooftop pool, a fitness center and yoga studio, a dog spa, a community room, and other amenities. The innovative project transformed the former Vanguard office building and longtime home of the Peace Corps into a new community of residents who will bring new 24/7 vibrancy to the Golden Triangle neighborhood.
In addition to the Elle, we have 11 other office-to-housing conversion projects in the pipeline that will deliver more than 2,300 new homes Downtown. And that’s just a start to achieving the DC Comeback Plan’s goal of adding 15,000 new residents Downtown.
The importance of investing in our Downtown cannot be understated. Downtown hosts nearly 40% of the businesses and 40% of the jobs in the District of Columbia, as well as generates over 35% of DC’s property tax revenues, which has been invested over the years to support economic development throughout the city. Maintaining a vibrant Downtown ensures we will continue to attract and retain businesses in DC, deliver an exciting experience for visitors, and ensure investment in neighborhoods throughout the city!
With office occupancy at around 20% currently, we have an opportunity to reposition Downtown to significantly include residents and convert the current 90% to 10% commercial to residential mix to something closer to 60% or 70% commercial use, with the balance of space including residential, resident-serving retail, green space, and community services and uses!
The Downtown Action Plan synthesizes the priorities and investments proposed by more than 100 stakeholders in Downtown to ensure continued vibrancy in Downtown DC.
And DMPED launched two important programs this year to incentivize the conversion from underutilized or vacant offices to active and occupied uses:
- The District’s Housing in Downtown program is designed to catalyze new residential development through commercial-to-residential conversion via a 20-year tax abatement.
- DMPED estimates that this initial $41 million investment can help deliver 6.7 million square feet of new residential use, or 8,400 new housing units.
- The District’s Central Washington Activation Program (or “Office to Anything”) supports the repositioning of office space into new commercial, entertainment, or retail spaces by offering a 15-year temporary property tax freeze.
- DMPED estimates that this $8 million investment will help convert 4 to 6 million square feet of office space into new uses that will create new sources of revenue for the District.
Ultimately, we envision Downtown DC to be a dynamic neighborhood, where anyone can work, live, visit and thrive. Our work includes attracting, retaining and expanding businesses Downtown and delivering extraordinary cultural and entertainment experiences that keep visitors coming time and time again back to DC.
This will not happen overnight. But Mayor Bowser and DMPED are leading with a plan and set of investments that will help get us there.
Nina Albert
Deputy Mayor, Planning and Economic Development