Alexandria, VA Economic Overview
Located on the Potomac River just minutes away from the nation’s capital, Alexandria is nationally recognized for its rich history and architecture preserved from the 18th and 19th centuries.
Alexandria is home to a thriving commercial scene, driven by successful boutiques, acclaimed chef-driven restaurants, a vibrant arts and culture scene, as well as an attractive and welcoming lifestyle.
The Alexandria commercial real estate market includes the iconic Old Town with its eclectic, artsy scene. Alexandria’s economy is driven by a strong government presence, largely composed of U.S. Department of Commerce and Department of Defense operations. Alexandria is also home to numerous trade associations, charities, and non-profits.
Just a stone’s throw away from Washington, D.C., Alexandria is nationally recognized as one of the best places in which to live and do business on the east coast. A recovery in federal spending has acted as a fundamental boost to the Northern Virginia economy, resulting in an increase in demand for commercial space, rental rates and payrolls. Employment in Alexandria is growing at over 2% per year and is largely defined by professional, scientific, and tech services jobs, as well as public administration jobs. Several prominent non-profits have established headquarters in the area, including the American Diabetes Association, Global Impact, United Way, and the Salvation Army. Private companies with headquarters in Alexandria include Inova Health Systems and Home Depot.
Alexandria, VA Commercial Real Estate Market
The Northern Virginia commercial market continues to expand. The first quarter of 2017 saw over 9,000 new jobs added, 49% of which were in office-using sectors of the economy. At this rate, the private sector is projected to add another 7,400 jobs in 2017, leading to an increase in both Alexandria office space demand and rental rates. Over 1.1 million square feet of office space was taken off the market in the first quarter of 2017. Construction activity during this time recorded some of the highest levels in recent history. In mid-2017, Alexandria boasts over 6.8 million square feet of completed commercial real estate inventory and almost 1 million additional square feet under construction. This inventory is primarily spread out over the following main submarkets:
Carlyle/King St Metro is home to the U.S. Patent and Trademark Office, the National Inventors Hall of Fame and the National Science Foundation. The Carlyle/King St Metro office market is Alexandria’s largest commercial area, with just over 5 million square feet of completed office space.
Eisenhower/King St Metro, part of the larger Eisenhower Valley, has become a well-known commercial corridor, along with the neighboring Carlyle district. This Alexandria sub-market gets its name from its main road, named for President Dwight D. Eisenhower. The Eisenhower/King St Metro office market encompasses just over 736,000 square feet of completed office space.
The I-395 Corridor is home to the U.S. Transportation Security Administration and Alexandria’s largest overall commercial submarket. The Alexandria portion of the I-395 Corridor office market currently boasts 2.7 million square feet of completed office space.
Old Town is located in the East-Southeastern area of Alexandria City, along the Potomac River. Originally laid out in 1749, it is the oldest section of the city and a recognized historic district. Old Town’s Market Square is believed to be one of the oldest continuously operating marketplaces in the country. The area is known for its historic town houses, art galleries, antique shops, and restaurants. The Old Town office market encompasses roughly 746,000 square feet of completed office space.
Alexandria, VA Office Sales Volume
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Alexandria, VA Office Transactions
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Alexandria, VA Commercial Inventory Breakdown
Office Spaces
Total: 22,398,167 SF
By square footage range:
- 50k to 100k SF: 3,473,987 SF / 15.51% of total office
- 100k to 500k SF: 14,767,289 SF / 65.93% of total office
- 500k to 1M SF: 4,156,891 SF / 18.56% of total office
By class:
- Class A: 9,718,087 SF / 43.39% of total office
- Class B: 6,409,329 SF / 28.62% of total office
- Class C: 57,816 SF / 0.26% of total office
Industrial
Total: 4,270,967 SF
By square footage range:
- 50k to 100k SF: 1,207,912 SF / 28.28% of total industrial
- 100k to 500k SF: 2,560,225 SF / 59.94% of total industrial
- 500k to 1M SF: 502,830 SF / 11.77% of total industrial
By class:
- Class B: 4,072,638 SF / 95.36% of total industrial
- Class C: 198,329 SF / 4.64% of total industrial
Office Spaces with Retail
Total: 7,068,136 SF
By square footage range:
- 50k to 100k SF: 1,752,410 SF / 24.79% of total office with retail
- 100k to 500k SF: 4,715,726 SF / 66.72% of total office with retail
- 500k to 1M SF: 600,000 SF / 8.49% of total office with retail
Employment in Alexandria, VA
Employment in Alexandria has been growing at a rate of roughly 2% per year, with the most common job groups (by number of people living in the city) employed in Management, Business, Science, Arts, Sales and Office, and Services. Alexandria boasts an unemployment rate as low as 2.9%, comparing favorably with the 4.0% statewide average.
The largest employers in the area include numerous federal agency departments, including the Department of Commerce, Department of Defense, Department of Agriculture, and Department of Homeland Security.
According to the Bureau of Labor Statistics, the highest-employing industries of the DC-VA-MD-WV area include:
- Professional and business services – currently employs 618,000, growing at a yearly rate of 1.4%
- Government — currently employs 589,400, growing at a yearly rate of 0.6%
- Education and health services — currently employs 354,600, growing at a yearly rate of 1.5%
Education in Alexandria, VA
Alexandria is home to the Northern Virginia Community College and Virginia Tech’s Washington-Alexandria Architecture Center (WAAC). The Virginia Commonwealth University operates a Northern Virginia branch of its School of Social Work here, and the George Washington University also has a campus near the King Street metro.
The city is served by the Alexandria City Public Schools system and hosts several of the Washington, D.C., area’s top private schools.
Commuting Time in Alexandria, VA
Locals have a longer average commute time than the national average of 24.8 minutes – Alexandria commutes come in at 29 minutes. Additionally, 1.73% of the workforce in Alexandria have "super commutes" of over 90 minutes.
Alexandria is bisected east and west by State Route 7, also known as King Street, which serves as the main road for the city. Alexandria’s Union Station is the city’s historic train station and hosts Amtrak intercity services, as well as the Virginia Railway Express regional rail service.
The city government operates its own mass transit system, the DASH bus, connecting points of interest with local transit hubs. Metrobus, Washington Metro, and the Virginia Railway Express, better known as the VRE, also serve Alexandria. The city also offers a free "trolley" diesel bus service on King Street from the King Street Metro Station to the Waterfront and a water taxi to and from the National Harbor development in Prince George's County, Maryland.
Alexandria Demographics
Population
- Total Population157,613
- Male Population(48.2 %) 75,954
- Female Population(51.8 %) 81,659
- Median Age36.80
Income/Financial
- Average Household Income$135,096
- Median Household Income$100,939
- Median Income Under 25$49,217
- Median Income 25-44$100,562
- Median Income 45-64$114,072
- Median Income Over 65$85,697
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