INDUSTRIAL LAND IN A POST-INDUSTRIAL CITY District of ...

More documents

Recommendations

Info

District of Columbia Industrial Areas Study DC Office of Planning Prepared by Phillips Preiss Shapiro Associates, Inc. Historically and currently, the District’s industrial supply has been largely focused in its rail corridors. As highways expanded, airports were constructed, and Northern Virginia developed, the focal point of the industrial market’s regional interest shifted west. Along the Dulles Corridor and as far from the city’s center as Manassas, industries took advantage of the growing population base as well as the roadway capacity of Routes 66 & 50, I-495 and I-95 as well as the Dulles Toll Road and Dulles Greenway. For District businesses, access to these routes is hindered by limited crossings over the Potomac River and traffic congestion through the city. Perhaps more significantly, available land for and private development interest in new industrial space in the District prevented urban industrial growth while suburban submarkets added (and continue to add) new, modern and flexible space each year. Longevity and Tradition Vacancy rates in the District have remained remarkably consistent over the past sixteen quarters with only a 2.5 percent fluctuation. One possible explanation for this steady condition is the relative lack of turnover in the District’s industrial spaces. Local brokers report that space rarely becomes available due to the commitment of businesses to the District as well as the cost and effort associated with relocation. Modest rents and rent increases also facilitate this stability. 27 Local Business Standing with the District Government One of the factors that influence new businesses to seek industrial space in the District are the benefits associated with a local address. Location in an Enterprise Zone or standing as a Local, Small, Disadvantaged Business Enterprise (LSDBE) provide financial incentives, lending capabilities and special consideration for government contracts that are not offered to businesses outside the District. Regulatory Factors Within the District of Columbia, provisions for a Storage Facility Permit or ABC Wholesaler’s License require wine, beer and liquor wholesale distributors to have facilities within the City to sell to DC businesses. Because no similar regulations apply to food distribution, a majority of grocery wholesalers serve the District from Prince George’s County, via Route 50. 28 The only major food distribution center in the District is the Florida Avenue Wholesale Market. This unique resource addresses ethnic markets and local restaurants rather than chain grocery stores. 27 As stated in interviews by Retail Compass with three industrial brokerage representatives, November 2005. 28 Interview with Paul Pascal, Pascal & Weiss, P.C. December 2005. - 71 -
District of Columbia Industrial Areas Study DC Office of Planning Prepared by Phillips Preiss Shapiro Associates, Inc. Unlike the ABC laws that increase the demand for industrial space in the District, city regulations decrease the available supply of space for another industrial use, trash transfer facilities, or TTFs. 29 In the 1998 amendment to DC’s Solid Waste Facility Permit Act of 1995, new provisions requiring facilities to be located 300 feet from any residential property line effectively eliminated any eligible property for this type of use in the District. 30 Business Taxation Although industrial space within the District is competitive with suburban offerings, the city’s taxation policies are less so. In comparing corporate franchise income taxation rates, the District 9.975 percent rate is measured against Maryland’s 7 percent and Virginia’s 6 percent rate. Another significant taxation consideration for industrial businesses is the cost differential between the District’s Worker’s Compensation premiums and those of surrounding jurisdictions. The District’s are reported to be as much as twice as high as Virginia or Maryland. 3.2.4 LOOKING AHEAD: THE FUTURE OF THE DISTRICT’S INDUSTRIAL MARKET Continued Job Growth Industrial job growth in the Washington, D.C. Metro Area has consistently outperformed national averages by a full percentage point since 2001. The region’s rate of new industrial jobs per year is expected to grow 1.7 percent over this year, according to the Department of Labor and Bureau of Labor Statistics. Over the past five years, expansion of the industrial workforce has increased at higher rate than the development of new industrial inventory (6.00 percent to 5.20 percent, respectively). 31 These conditions indicate a high probability of stabilized or growing demand for the city and the possibility of further decreases in vacancy rates and increases in asking rents. However, it is also likely that much of this growth will pass the District by—existing industrial buildings don’t provide the amount of quality of space demanded by many tenants, and higher land costs will discourage speculative construction. Strengthening Competition Several submarkets near the District of Columbia are experiencing rapid growth in their industrial sectors. The Dulles Corridor area has added approximately 895,000 square feet of new space since the beginning of 2005 with an additional 995,000 square feet currently under construction. The Manassas/I-66 submarket has increased its inventory by 461,000 square feet with over 100,000 square feet being built. 29 TTFs are also referred to as Intermediate Materials Recycling Facilities. 30 District of Columbia Municipal Regulations (DCMR), Sections 802.3-802.4. 31 The CoStar Industrial Report. - 72 -
Page 1 and 2:
INDUSTRIAL LAND IN A POST-INDUSTRIA
Page 3 and 4:
District of Columbia Industrial Are
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24: District of Columbia Industrial Are
Page 73: District of Columbia Industrial Are
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179:
show all

INDUSTRIAL LAND IN A POST-INDUSTRIAL CITY District of ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?