About Those New Restaurants In Georgetown

WASHINGTON, DC–Restaurants that have wanted to open a location in Georgetown have been confronted with a 300% gap in rents compared with more affordable corridors in the District. That gap is narrowing to 150% due to a willingness by landlords to give flexible lease terms and a rengerized renovation process , according to a research note from JLL. It writes:

Georgetown posts a 7.3% storefront vacancy rate across 475 storefronts, with the majority of available space sitting along M Street. In 2018 more than 50% of these vacant spaces have undergone, or are undergoing, renovation due to open dialogue between residents and landowners. As landlords begin to renovate spaces to accommodate different users and offer more flexible and economically advantageous lease terms, leasing activity will grow and diversify.

A drive to serve the market’s daytime population of 25,007 and resident population of 6,543 with quick and more affordable dining options is also leading to more restaurant openings — namely quick service restaurants and coffee shops. Net openings in these categories in have outpaced fast casual net openings over the past year, growing by 200%, 166%, and 50% respectively, JLL reports.

All told, dining is expecting to increase its share of storefronts by 4% so far for 2018, according to the research note. Of these new openings, 62% have been new tenants to the market, “confirming Georgetown’s appeal and accessibility to restaurateurs,” JLL writes.