Mayor Vincent C. GrayDeputy Mayor Victor L. Hoskins

Malaysia Chamber of Commerce SME Conference – October 15, 2014

Mayor Vincent C. GrayM. Jeffrey MillerDeputy Mayor for Planning and Economic Development

DC is the place to be

The District is an increasingly attractive place to live

DC population

2005 2006 2007 2008 2009 2010 2011 2012 2013560,000

570,000

580,000

590,000

600,000

610,000

620,000

630,000

640,000

650,000

567,136

646,449

Source: Census

151,120

133,632

119,301

99,941

95,119

39,52920,229

Educational At-tainment of DC Population 2012Associate's

Degree

Graduate or Pro-fessional Degree

Bachelor's Degree

High School Graduate, GED, or Alternative

Some College, No Degree

9th-12th Grade, No Diploma

Less than 9th Grade

Source: US Census

Demographics of DC

Fast Facts• Unemployment: 7.6%• Median Age: 33.6 years• 2nd fastest growing state between April

2010 and July 2013 at 7.4% growth

Manufacturing

Mining, Logging, and Construction

Information

Financial Activities

Trade, Transportation, and Utilities

Other services

Leisure and Hospitality

Educational and Health Services

Professional and Business Services

Government

0 100 200 300

0.9

14.5

17.2

29

30.8

69.9

70.2

122.2

157.5

236.6

DC Em-ployment

(thou-sands)

$7.8B Total project costs

53,082 Total jobs

$5.0B Stabilized tax revenue over 30 years

92 Projects completed or under construction

2,698 Affordable housing units

8,038 Market rate housing units

DMPED Real Estate Development

New Y

ork

DC*

San

Fran

cisco

Bosto

n0

4

8

Office Space Under Construction (sq ft)

Q1 2013

Mill

ions

New Y

ork

DC

San

Fran

cisco

Bosto

n$0

$40

$80

Average CommercialAsking Rent

Q1 2013

New Y

ork

DC*

San

Fran

cisco

Bosto

n0

200

400

Office Inventory (sq ft)Q1 2013

New Y

ork

DC

San

Fran

cisco

Bosto

n0%

10%

20%

Office Vacancy RateQ1 2013

Source: Jones Lang LaSalle, Office Statistics

Mill

ions

* Denotes Metro DC

Real Estate Markets of Comparable US Cities

BUSINESS DEVELOPMENT

Five-Year Strategy seeks to create 100,000 new jobs and generate $1 billion in new tax revenue

Grow and diversify DC’s economy

• Grow existing sectors

• Attract, nurture, and grow new innovative sectors

• Promote opportunities in neighborhoods

Educate and prepare the workforce for a new economy

• Educate our youth for the economy of tomorrow

• Align residents’ job skills with our growing economy to lower unemployment

Strategic goals for District’s economy…

…set forth in The Five-Year Economic

Development Strategy…

…which defined six bold visions to transform DC

1. Most business-friendly economy in the nation

2. Largest technology center on the East Coast

3. Nation’s destination of choice

4. End of retail leakage

5. Best-in-class global medical center

6. Top North American destination for foreign investors, businesses and tourists

100,000 new jobs and

$1 billion new tax revenue

Outcome

We have made sound progress on implementation with the support of critical District and private sector partners

Twenty-two of 52 initiatives are complete, distributed across all six visions

Total Complete Launched On Deck0

10

20

30

40

50

60

52

17

22

13

Distribution of Initiatives by Current Implemen-tation Status

(October 2014)

DC Has Consistently Strong Economic Growth

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$70

$75

$80

$85

$90

$95

$100

$105

$110

$115

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

$17,000

US and DC GDP Growth 2003-2013 (Millions of Dollars)

District of Columbia United StatesSource: Bureau of Economic Analysis

Washington, DC Economic Overview

$38,292

$27,623

$13,684

$8,860

$7,689

$7,447

$4,385$5,381

DC GDP by Sector

Government Professional and business services Finance, insurance, real estate, rental, and leasing Educational services, health care, and social assistance Information Other services, except government Arts, entertainment, recreation, accommodation, and food services

Source: Bureau of Economic Analysis Atlanta-Sandy Springs-Roswell, GA

Boston-Cambridge-Newton, MA-NH

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

San Francisco-Oakland-Hayward, CA

Dallas-Fort Worth-Arlington, TX

Washington-Arlington-Alexandria, DC-VA-MD-WV

Houston-The Woodlands-Sugar Land, TX

Chicago-Naperville-Elgin, IL-IN-WI

Los Angeles-Long Beach-Anaheim, CA

New York-Newark-Jersey City, NY-NJ-PA

$307,233

$370,769

$383,401

$388,272

$447,574

$463,925

$517,367

$590,248

$826,826

$1,471,170

2013 10 Largest Metro Areas by GDP

Source: Bureau of Economic Analysis

• More than 20 Fortune 500 companies in the Washington Region

• Strong ties in the life sciences• Information technology hub: 80% of all internet

usage in the US goes through the Washington Region• Strong presence of major defense industry players

Greater Washington region boasts a strong, diverse economy

The Greater Washington, DC region also boasts names such as Johns Hopkins University, University of Maryland,

and George Mason University.

The District is home to a robust educational network

First investors in 1776, the District’s primary technology entrepreneurship hub in February 2013• Since launch, 1776 has over 172 member companies with 329

employees• Launched a startup school with partner General AssemblyMember CompaniesFlat World KnowledgeSocial TablesHingeTrendPoCont3nt.comHitch!TypingClubDemocracy.comID.meLinked Senior(Leg)CyteBloompopOmniscience MobileRideScoutSTYLECABLEThe Wireless RegistryCitizenhubHaystaqDNAHer Corner LLCInteliscaleMiddleland Capital

Phone2actionStudio PublishingTech CocktailThe Trip Tribe10io1EQAgricityBright BotBubblCayzoCollegeSnappsCommunityREDCrowdTrustDeconstructionDegree ProspectsEdbackerGangBoxGolfswellGravtateImagine If, Inc.NetcitoPelonkeyRebel DeskRidePostSimple Entry,

LLCSkillSmartSNOBSWAPStories Inc.VentureBoardVinoloversAltitudeAppTaliaArtJamz LLCBindFlow LLCBitCoin FoundationBlissInviteBrightRollCapsoole IncCareLuLuCatchifCoconutOrchardCollegeAppzConveyalCurio RoadCycloMendDaily DeedDailyHealthData Community DCDemoHire.com

DipsologyDorsata, Inc.EMQuanta, LLCFairWear Inc.FanamanaFanaticallFloqkerGhost Note MediaGlobal GoGlobal Voice HallgmobileairGood WorldHandybookHilltop Energy PartnersHomeTrackRImpactHubInAffinity Networks LLCInfield HealthInnovative IntegrationInterfolioiTrAssetIvy StandardKaltura

Kickball365KitchensurfingKlickOrderKulTek, LLCLaunchPad CollegeLaunchPosseLearnteria LLCLinktankLocal Patient Inc.Luminate HealthMah! Brands Ltd.MediCoverage Inc.Mezzobit Inc.MGNFY.itMilitary Job NetworksMore Than Money CareersMove2SafetyMpower Sports and RecreationmyEDmatchnclud

NeighborsationsNettadonna, LLCNewCoNewsiTNonprofit MetricsNouri IncNutrition NoobOpen Cancer NetworkOptimantraOrdysy LLCOrganic Marketing AnalyticsOstendio, Inc PlateDatePNT HoldingsPoshpacker Inc.PrepFactoryPXYMQuumeRallyIXRelay FoodsRip van wafelsRoadWarrior,

LLCsailthruScalacitySense Data LLCShoutOutSimpleTix.comSmart Wedding RegistrySmarterVoteSnapDashSnaphappiSnareSoftware TheoreticSoundtrackrSpecifix PrepSpeekSpend ConsciouslySubject7SurveySnapTalent InsightToomzaTransit LabsUrban BingoUrban DeliveryVideo Blocks

Largest Tech Center on the East Coast:Creating an entrepreneurship hub

Foreign Direct Investment in the District

Major American Cities of the Future

• #3 for Human Resources

• #9 for Infrastructure

Space and Defense

Metals

Transportation

Real Estate

Communications

Other

Financial Services

Software & IT

Business Services

0 5 10 15 20 25 30

FDI Projects in DC by Sector

Source: FDI Markets

Asi

a

West

ern

Euro

pe

Nort

h A

meri

ca

Lati

n A

mer.

And ...

Near

East

C.W

. of

Ind S

tate

s

Oce

ania

East

ern

Euro

pe

Sub-S

ara

han A

f...

0

10

20

30

40

50

60

50

41

34

15

73 3 2 1

Registered Foreign Entities by Geograph-

ical Origin

Source: Department of Consumer and Regulatory Affairs

EB-5 Investment Visa Funding in the District

4 projects received EB-5 Funding totaling $217M

Destination for Foreign Investment

Marriott Marquis

Total EB-5 Investments $217M

Marriott Marquis Hotel $5M

O Street Market $92M

Square 69-Hyatt Place Hotel $65M

Skyland Town Center $55M

City Market at O Street

Status/Milestones:• Closed on November 16, 2011• First move-ins October 2014• Giant supermarket opened in

November 2013

Development Program:• 9,677 Retail SF across 5 stores• 79,551SF Giant supermarket • 629 Residential units• 182 Hotel keys• 489 Parking spaces

Benefits:• 689 Construction jobs• 388 Permanent jobs• 90 Affordable units • $100M Estimated tax returns (over

30 years)

City Market at O Street

Parcel 69 400 E Street SW: Hotel and Fire station

Status/Milestones:• Closed on October 31, 2013• Construction started December 6,

2013Benefits:• 510 Construction jobs• 600 Permanent jobs• $111M Estimated tax revenue (over

30 years)• 1,500 Retail SF• 214 Key Hyatt Place Hotel• New fire station for Engine Company

13

Google street view

Marriott Marquis

Status/Milestones:• Grand Opening held June 2014Benefits:• 473 Construction jobs• 1,000 Permanent jobs• $700M from FDI• $286M Estimated tax revenue (over

30 years)• 25,000 Retail SF • 1,174 Hotel keys

Picture: __

Picture: __

Google street view

Questions