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DC Adopts New Incentive Program to Repurpose Downtown Offices
The D.C. Council approved the fiscal 2025 budget, launching the Central Washington Activation Program to convert office buildings into hotels, retail, and restaurants. This new initiative, distinct from the existing residential conversion program, offers a 15-year property tax abatement for eligible projects.
The abatement cap is set at $5 million in 2027, $6 million in 2028, and $8 million in 2029, with a 4% annual growth. Properties must be at least 50,000 square feet and undergo significant renovations. This program, expanding geographically to areas like Shaw and Capitol Hill, aims to reduce the office vacancy rate and stimulate downtown revitalization. The budget still requires Mayor Bowser’s signature.
- ◦Development
- ◦Policy/Gov't
