This browser does not support the Video element.
DC Chamber of Commerce shares state of the District
Mayor Muriel Bowser is expected to give a keynote address at the DC State of the District & Region.
WASHINGTON - D.C.'s economy is at a "pivotal point," according to the latest D.C. Chamber of Commerce 2025 "State of Business Report," released for Monday's "State of the District and Region" Conference.
The backstory:
The event, featuring industry experts from the Commanders to AI industries, took part in Monday in the conference, held at Georgetown University's Capital Campus.
The event is held each year as a way to guide business owners, developers and employers on the state of D.C.'s economy with the guidance offered, meant to function as a blueprint for businessowners looking to start projects in the city or weather their businesses for any market instability.
In March, Mayor Muriel Bowser and her team warned the District could lose 40,000 jobs and hundreds of thousands of dollars worth in revenue as the Trump Administration continues to shrink the federal workforce.
Dig deeper:
The Chamber's president and CEO wrote in an opening letter to the 2025 business report: "The DC Chamber’s 2025 State of Business Report: Investing in Growth arrives at a pivotal moment for our city that demands bold action."
Some of the report's executive summary reads:
"Since the pandemic, the District has made important progress. The city has regained some ground as a physical center of regional work, and office occupancy rates have stabilized at around 50 percent of pre-pandemic levels. However, core office submarkets like the Central Business District and Georgetown face annual vacancy rates nearing 20 percent or higher. Annual office rents, when adjusted for inflation, have declined, reflecting weak demand and landlord concessions to retain tenants. Entrepreneurial activity has also slowed. The number of net new business establishments dropped by 69 percent between its 2021 peak and 2023, and business applications have also fallen from their highs early in the pandemic."
Local perspective:
There are other forces poking at D.C.'s economy. The first panel of the conference discussed what was described as the "double Tsunami" of AI and the shrinking federal workforce. Locally, over the summer, FOX 5 reported heavily on restaurant owners blaming the D.C. tipped minimum wage law, known as Initiative 82, for forcing many restaurants to close for good.
Pedro Alfonso is the President and CEO of Dynamic Concepts, INC. Alfonso tells FOX 5 they're a utility infrastructure firm, operating for more than four decades. He's seen many mayors and more than one time of turmoil. Asked his thoughts on D.C.'s current economy and any advice he'd give, Alfonso told FOX 5, "I think the economy is still strong in the District but I would move with caution over the next year to see, especially if you're in the hospitality industry. Restaurants are holding on."
"Washington D.C., typically, in the past, has always held on in spite of the economy. I'm not sure how well we're situated for that right now. But growth, looking at next year, that's why this bigger conference today is going to be so important," Alfonso added.
Alfonso did also point to positive signs in the economy. He referenced the recent passage of the RFK Stadium Bill as proof the city and mayor are really pushing to diversify the economy and move it from federal government-dependent to one focused on sports an entertainment as ways to bring in revenue.
The D.C. Chamber of Commerce President and CEO Chinyere Hubbard also celebrated the RFK bill and made sure to mention investments to Monumental Sports as well.
"I am hearing that people want to be in Washington D.C. They want to be in the city. And we just want to help make it easier for them to be in the city," said Hubbard, "There's also merging industries, healthcare, IT, AI and technologies are becoming a very large — emerging industry in D.C."
"In a couple of years, we're going to hold the NFL Draft on the National Mall and I believe, you heard it here, in 2031 we're going to host a Super Bowl," said D.C. Mayor Muriel Bowser in conference keynote remarks.
The mayor touched on her "Growth Agenda" for the District, also noted the significance of the "shifting" federal landscape, from the shrinking of the federal workforce to the federal government not doing as many contracts with D.C. Businesses.
On the topic of bringing new business and keeping the federal workforce in D.C., the mayor said, "The term that I like is that we have to make our region sticky, and the way we make it sticky is we have great neighborhoods, have great schools, parks restaurants, people don't want to leave Washington. So that's why we have to make sure we have a good job that will keep them here.
Mayor Bowser said she'll be introducing "Stand Alone Tuesday" — an effort to introduce stand-alone bills to the council that will help with business.
You can read the full D.C. Chamber of Commerce's 2025 State of Business report: here.