May 7, 2012

Retail Hotspots Of the Future?

You’ve heard prime retail space in DC commands rents over $100/SF. But where is growth headed? We polled the experts.

A fast-growing residential base in Mount Vernon Triangle is primed for retail growth, says Miller Walker co-founder Bill Miller.

“The ballpark area is another sleeper,” Bill tells us. “It’s basically Capitol Hill South—just a few blocks to the north, there’s a sea of rowhomes with few retail options.”

“It’s going to take a little bit of time to percolate out, but if you’re not paying attention to this, you’re taking your eye off the ball,” says Bill.

 

You’ve heard prime retail space in DC commands rents over $100/SF. But where is growth headed? We polled the experts.

  1. Mt. Vernon Triangle

A fast-growing residential base in Mount Vernon Triange (bounded by 7th St, NY Ave, NJ Ave, and Mass Ave) is primed for retail growth, says Miller Walker co-founder Bill Miller. “After the huge success at City Vista, there is little street-level space available, and developers can’t build apartments there fast enough.” Add to the mix a smattering of office buildings and hotels, the convention center and Verizon Center nearby, and you’ve got enough daytime traffic to sustain stores. And that helps position it against other popular retail drags like 14th St, where “there’s no lunch crowd.”

  1. Minnesota-Benning

The “gravitational pull” of demographics should boost the area around the Minnesota Avenue Metro station, says Capital Retail Group co-founder Robert Tack (right, with JBGR’s Jay Klug). “We’re starting to see new physical infrastructure being available like apartment buildings,” he tells us. “Retail inevitably follows residential.” And the DC Dept. of Employment Services opened a big office in the neighborhood in September 2010, providing a base for daytime traffic. What’s next: “I think we’re going to start seeing coffee shops and local versions of CVS and 7-11.”

  1. Capitol Riverfront

“The ballpark area is another sleeper,” Bill tells us. “It’s basically Capitol Hill South—just a few blocks to the north, there’s a sea of rowhomes with few retail options.” Add to the mix 6.8M SF of office space, 2,677 multifamily units, a respectable record by the team, and a waterfront park in The Yards, and the future looks promising. “It’s going to take a little bit of time to percolate out, but if you’re not paying attention to this, you’re taking your eye off the ball,” says Bill.

Bisnow