The company recently leased about 16,000 square feet at 2034 West Virginia, NE, an industrial facility, in order to support its grocery store operations.

“By being able to open warehouse and distribution facilities so close to our grocery stores we can keep our stores smaller and still serve our clients with effective distribution,” Gilchrist says.

For the owners of these District-based properties that is a very welcome business model. For years they have been watching as industrial users exited the District to neighboring submarkets in search of more modern space, JLL SVP John Dettleff told GlobeSt.com. For competitive reasons these tenants need distribution facilities with higher ceiling heights and better loading and transport options, which DC's older buildings can't offer, Dettleff, who brokered Union Kitchen's lease, said.

Many of these industry property owners sold out to multifamily housing developers but some buildings, either because of zoning or other issues, are not good candidates for conversion.

But they do serve nicely as distribution centers for locally-based operations such as Union Kitchen's.

Meanwhile industrial buildings in close-in suburbs are booming with the new attention. In Cheverly and Landover, Md., respectively, Washington Food and Supply of Maryland leased 136,360 square feet and Floranation has leased 57,800 square feet. In Northern Virginia , DC Oriental is in the market for 50,000 square feet.

Of course the Union Kitchens in the local economy will not completely make up for the industrial companies' exodus from DC. That 50,000 square feet DC Oriental is looking to take in Northern Virginia? It used to occupy the same space in 2034 West Virginia, NE. Union Kitchen back filled it, but only by a small percentage.

WASHINGTON, DC–Local food incubator Union Kitchen's ambitions have spread far beyond its startup roots. The company has opened one grocery store in Capitol Hill and plans to open another near the Convention Center within three to four months, co-founder Cullen Gilchrist tells GlobeSt.com. Within the next five years, he hopes to see another five stores open at various points around the city.

In terms of retail space, these plans don't even qualify as the proverbial drop in the bucket. The Capitol Hill store is about 1,000 square feet although Gilchrist does expect to see the future grocery stores expand to about 3,000 square feet.

Union Kitchen's grocery store plans will have a larger impact on the District's real estate community, however, just not in the manner one might assume: they will help revitalize the city's worn industrial buildings.

Close-in Distribution Support

The company recently leased about 16,000 square feet at 2034 West Virginia, NE, an industrial facility, in order to support its grocery store operations.

“By being able to open warehouse and distribution facilities so close to our grocery stores we can keep our stores smaller and still serve our clients with effective distribution,” Gilchrist says.

For the owners of these District-based properties that is a very welcome business model. For years they have been watching as industrial users exited the District to neighboring submarkets in search of more modern space, JLL SVP John Dettleff told GlobeSt.com. For competitive reasons these tenants need distribution facilities with higher ceiling heights and better loading and transport options, which DC's older buildings can't offer, Dettleff, who brokered Union Kitchen's lease, said.

Many of these industry property owners sold out to multifamily housing developers but some buildings, either because of zoning or other issues, are not good candidates for conversion.

But they do serve nicely as distribution centers for locally-based operations such as Union Kitchen's.

Meanwhile industrial buildings in close-in suburbs are booming with the new attention. In Cheverly and Landover, Md., respectively, Washington Food and Supply of Maryland leased 136,360 square feet and Floranation has leased 57,800 square feet. In Northern Virginia , DC Oriental is in the market for 50,000 square feet.

Of course the Union Kitchens in the local economy will not completely make up for the industrial companies' exodus from DC. That 50,000 square feet DC Oriental is looking to take in Northern Virginia? It used to occupy the same space in 2034 West Virginia, NE. Union Kitchen back filled it, but only by a small percentage.