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D.C. retail market remains strong despite slowdown
LATEST ON THIS STORYRelated Topics: WASHINGTON
WASHINGTON (Map, News) - The Washington area still is attracting and retaining shops and businesses despite slower job growth and reduced federal spending, according to a report released Tuesday.
Research firm Delta Associates said growth in leased retail space is expected to continue with a shift toward new development in buildings that combine residential and retail space.
“Retail development is still strong,” said Elizabeth Norton, mid-Atlantic research director at Delta Associates. “But there’s a shift towards mixed-use developments.”
Delta found unemployment in the Washington region among the lowest in the nation, but predicted job growth would slow in coming years. The group said decreases in federal spending led to this slowdown and economic growth would be less robust in the coming years.
“The growth is still healthy, despite [job growth] being below the average,” Norton said.
She said low vacancy rates and increases in retail rent indicate strength in the retail sector.
“There’s still a demand for retail,” Norton said. “I think it’s under-served in the Washington area.”
According to the Delta report, the Washington region has more than 112 million square feet of retail space, the fourth largest among metropolitan areas in the country. Of this space, more than half is situated around a grocery store, where only 2.3 percent of retail space is vacant. Delta said as the number of open-air, mixed-use developments increased, there are concerns that other types of shopping centers will be vacated. The report predicted this closed-air market should remain stable, but vacancy rates could increase slightly.
dfrancis@dcexaminer.com
Comments from Examiner Readers
11:36 AM MST on Fri., Aug. 15, 2008 re: "Region’s food, gas, energy prices fuel retail inflation"
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Examiner Reader said:
prices rising are not inflation, Inflation is caused by the devaluation of the dollar and this is caused soley by the federal reserve
1 agree | 1 disagree
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Examiner Reader said:
Baltimore is one of the oldest cities in this nation; it is rich with a tradition of invention, industrialism, and innovation. It should return to it's former glory...back in the late 1800's and 1900's it was said "If you want tomke money, you will need to go to Baltimore"...
8 agree | 9 disagree
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Examiner Reader said:
why is nothing ever realesed in australia? i have been looking for light up shoes for years and i finally find a pair and they arent selling in australia!!
10 agree | 9 disagree
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D said:
Still cheap.
56 agree | 61 disagree
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Examiner Reader said:
Cheap: I said trying not being sucessfull.
69 agree | 74 disagree
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Cheap said:
Well, if you let him. Who's fault is that? Make a call.
78 agree | 47 disagree
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Examiner Reader said:
Now I know what o'malley's march really stands for. He will stand by raise taxes and watch all of the businesses march out of Maryland.
65 agree | 43 disagree
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Leaving MD said:
Value City is closing 37 of its 113 stores nationwide yet 7 of 8 of its MD stores are closing! How many jobs is that? How many other businesses will be affected by the MD closings. This is what a hostile business climate does! Thanks O'Malley! Thanks Franchot! Thanks Miller! Thanks Busch! Nice job boys.
70 agree | 64 disagree
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City Resident said:
pretty sure this is O' Malleys fault. that and the fact that liberals are now using craigslist to buy second hand furniture....man, way to go Baltimore!
79 agree | 70 disagree
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Examiner Reader said:
WHat is the street address for Penskys???? You give the one for the new one in Falls Church.
290 agree | 275 disagree
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