Downtown DC Bucking National Retail Trends
According to a report released by brokerage firm JLL, as of mid-May 2019, retail openings in the district have outpaced closings nearly 4 to 1. In comparison, closings outpaced openings in 2018 with 1.3 closings per every opening.
WASHINGTON, DC—Talk about a turnaround, the retail sector in Washington DC has done an about face so far this year with much more retail storefronts opening than closing.
According to a report released by brokerage firm JLL, as of mid-May 2019, retail openings in the district have outpaced closings nearly 4 to 1. In comparison, closings outpaced openings in 2018 with 1.3 closings per every opening.
The industry leading the way in the district is dining, which accounted for 71% of announced openings so far in 2019.
“Within the dining world, restaurateurs are narrowing their focus by cuisine or offering experiences such as games at barcades or views at rooftop locations,” says Leah Smith, senior research analyst, retail for JLL in the report. “Also, not surprisingly, restaurants and bars accounted for the highest percentage of closings at 80%. Nonetheless in 2019, for every dining storefront closing in the city, three are opening. The trend was similar in 2018 with restaurants accounting for 82% of openings and 76% of closings.”
Other noteworthy data from the JLL report include that two-thirds of announced retail openings in 2019 have been located east of 16th Street. The highest density of openings was concentrated in the Market District, which accounted for 10% of the city’s openings, in particular with the upcoming arrival of the new Union Market food hall, La Cosecha. Other eastern neighborhoods that have driven storefront net openings included Mount Vernon Triangle, Columbia Heights, Ballpark and Shaw, with each micro-market accounting for 4%-6% of net storefront openings, the report states.
JLL adds that net storefront openings in traditional, western, slower population growth neighborhoods such as Georgetown and Dupont Circle, have slowed. Retail openings in those two neighborhoods as of mid-May accounted for only 13% of all announced openings and the largest turnover was in Dupont Circle where restaurants accounted for 7% of all openings and 16% of all closings.
Smith says that leasing will continue to follow population growth eastward into the southeast, southwest and northeast quadrants.
“In addition to Union Market, which will be a leader in net openings over the next few years, Ballpark openings will outpace closings at a rate of close to 5 to 1,” Smith states in the report. “Finally, expect East of the River, particularly at Congress Heights, to see some of the most dramatic uptick in new activity over the next 48 months.”