Despite the wariness of the Trump administration and the shaky national economic status, during the D.C. Chamber of Commerce’s State of the District & Region Conference on Sept. 22, District business and political leaders were upbeat about the future of the city’s economy and the various sectors in it.
Chinyere Hubbard, the president and CEO of the chamber, said the purpose of the conference— held at Georgetown University Capitol Campus in Northwest before an audience of 200 people— was “to bring our communities together to align on the future and actions for the District business ecosystem.”
“We are proud to convene business leaders, policymakers, residents, and all committed partners to hear directly from D.C. Mayor Muriel Bowser and other esteemed subject matter experts about the bold steps of the District and the surrounding region,” Hubbard said.
As the District grapples with a Trump administration that has laid off thousands of federal workers, many of whom are D.C. residents, coupled with efforts to stop federal interference, the city is also experiencing economic wins.
The D.C. Council recently voted to support the building of a stadium for the Washington Commanders football team at the RFK Stadium site in Northeast and the National Football League announced that its 2027 draft will be held on the National Mall.
To quantify the economic and business activity, the chamber released the 2025 State of Business Report: Investing in Growth, which includes data on commercial performance and employment of the District.
“This report delivers the data District leaders need to incentivize businesses to come to our nation’s capital,” said Earle “Chico” Horton III, board chair for the D.C. Chamber of Commerce. “We’re ensuring the District becomes the place where businesses choose to invest and grow.”
Specifics of the State of the Business Report
The 16-page report’s executive summary said that while the District continues to be the economic engine of the Washington metropolitan area— despite the adverse effects of the COVID-19 pandemic— the downtown corridor and commercially driven areas such as Georgetown are enduring office vacancy rates of 20% and more.
The annual report also noted that the number of business establishments has dropped 66% from 2021 to 2023 and business applications from their highs early in the pandemic.
The unemployment rate in the District sits at 5.8% and the business leaders surveyed say by a margin of 60% that the city’s economy will likely get worse in the coming months.
“It’s a sobering report,” said Horton.
In essence, the summary said that a pro-growth agenda must be adopted by the city’s political leadership to offset any economic slowdown.
“To secure long-term success, the District must pivot from office-centric development toward an economy that encourages experimentation, fosters innovation, and powers job growth,” the report said. “Investments in the vibrancy of the city will help attract talented residents, workers, and businesses— increasing the District’s chances to emerge as a leading innovation or technological hub.”
Specifically, the report called for performance-based tax incentives to encourage job growth, diversifying the District’s economy with a robust workforce training component, fostering university-linked innovation, simplifying permitting, regularly reviewing regulations and including economic impact analysis in policymaking and investing in workforce and affordable housing for workers and continue promoting downtown as a livable option.
“These strategies offer a roadmap for D.C. to build a more diverse, competitive, and dynamic economy,” the report said. “By enacting these policies and leveraging the city’s existing strengths— a talented workforce, an array of respected research institutions, and a rich collection of civic assets— the District can reposition itself as a leading city characterized by efficiency, innovation, vibrancy, and growth.”
Bowser Takes a Victory Lap at the Conference
Before the mayor delivered the keynote address at the conference, Horton praised her for being an effective leader, noting that she has served three terms.
“She is the first African American woman in the nation to serve as mayor of a major city for three terms, and she will serve another four years,” said Horton, referring to the mayoral election that will take place in 2026 even though Bowser hasn’t indicated whether she will run yet.
The mayor talked about her success saying “you win by winning” by delivering for the residents.
“We made some really important progress,” Bowser said. “I promised D.C. residents some time ago that we would get 180 acres on the banks of the Anacostia River and make it a mixed-use development and we would deliver jobs, deliver new homes, jobs and connections to the Anacostia and we do, indeed, have the right partner at the right time to bring our team home and we are proud of that.”
Bowser also noted the progress made with the rebuilding of Capital One Arena downtown and the economic importance of it. She stressed the importance of engaging District businesses and how that stimulates the economy.
“We know that when you hire D.C. businesses, D.C. businesses hire D.C. residents, and D.C. residents pay D.C. taxes,” she said.
Having long touted the benefits of sports for the city’s economy, Bowser said the success of plans to have all of Washington’s pro sports franchises housed in the city is noteworthy and uncommon nationally.
“I declared D.C. the sports capital (of the nation) 10 years ago,” she said. “We will be only one of six cities in the United States of America that has all of its professional sports teams in the city limits.”
Further, looking forward to the completion of the Commanders stadium, Bowser made a prediction.
“I believe— you heard it here— in 2031 we are going to host the Super Bowl,” she said.
On the housing front, the mayor noted her efforts produced a win for residents.
“We had a goal of 36,000 units of housing by 2025 but we beat that goal by one year,” she said. “And that’s a big deal.”
While she touted achievements, the mayor also said she plans on re-introducing legislation designed to foster growth in the city.
“We are going to have a Stand-Alone Tuesday, and do you know what that is,” she said. “That means stand alone bills that the Council wants that focus on how we grow.”
The mayor also emphasized that the District is pro-business.
“We have to beat back this notion that D.C. is not good for business when in fact we are good for business,” she said. “A lot of businesses start and grow here, a lot of developers have gotten their start here and become great businesses, a lot of IT companies are doing great work, so we want to make sure that our laws match our intense focus on being a great place to do business.”
‘Capital of Business’: Conference Panels Discuss Policies, Practices
The conference held subject matter panels on education, health care and real estate/sports/entertainment.
During the education panel, University of the District of Columbia President Dr. Maurice Edington said it was important for educational institutions to develop strong relationships with the business community.
“We need to listen to our corporate partners,” Edington said. “We need to spend time with them and get to know them.”
Drew Hubbard, the executive director of D.C. The Workforce Investment Council said it is key that students and workers learn as much as possible about artificial intelligence.
“It is important to be proficient in artificial intelligence,” he said.
D.C. Council member Christina Henderson (I-At Large) was a panelist on the health sector. Henderson said recent changes instituted by the U.S. Congress and the Trump administration has created challenges for some residents and businesses.
“Medicaid requirements have changed and must be dealt with by residents and businesses,” she said.
The real estate/sports/entertainment panelists talked about the city’s more aggressive insertion into these sectors.
“This is about diversifying our economy,” said D.C. Deputy Mayor for Planning and Economic Development Nina Albert.
Ernie Jarvis, vice chairman of Savills North America, said other sectors the city should explore include life sciences, bioscience and cryptocurrency.
“Washington, D.C. has a healthy labor pool,” Jarvis said. “We are known as the capital of the nation, and we can become the capital of business.”