(Alexandria, VA) – Alexandria’s fourth-quarter Local Economic Indicators Report (LEIRS), a statistical measure of the economic health of the City, were recently compiled and released by the Alexandria Economic Development Partnership, Inc. (AEDP). AEDP has compiled these statistics on behalf of the City since the partnership’s inception in 1981. A detailed report is available online at http://www.alexecon.org/leirs.html.

Unemployment Alexandria and Virginia unemployment rates have decreased over the last quarter, and over the last year, while nationwide unemployment rose. From the third quarter to the fourth, the City’s rate dropped dramatically from 3.5% to 2.8%, while the state’s rate dropped from 4.1% to 3.6%. Accordingly, the number of Alexandria’s unemployment claims were down 24% from the fourth quarter 2001 to 2002.

Retail Sales & Meals Tax Retail sales figures continue to grow in Alexandria. Fourth quarter figures were up nearly 11% over fourth quarter 2000, and two percent over fourth quarter 2001. Similarly, meals tax receipts were up 18%, and lodging tax receipts were up nearly 31% over the previous year.

Commercial Real Estate Market Office markets across the country are in various stages of correction, and the Washington, DC metropolitan area is still one of the strongest markets in the country. The overall vacancy rate in Northern Virginia continues to adjust – the rate increased from 16.9% in the third quarter to 17.9% in the fourth.

Alexandria’s vacancy rate remains relatively stable. The vacancy rate had been dropping steadily from a height of 12.1% in first quarter 2002 to 10.7% in the third. A slight correction in the fourth quarter brought an increase in the vacancy rate to 11.5%, the result of negative 99,290 square feet of absorption.

The demand for industrial space in Alexandria hasn’t weakened – the market remains less than 4% vacant, as it has with few exceptions since fourth quarter 2000.

Assessed Property Values The 2003 property assessments reflected a substantial increase in the value of both commercial and residential property in Alexandria. Commercial assessments were up nearly 12%, and residential was up more than 25%. Single family homes were up 23%, and condominiums increased by 30%.

Metro Ridership Ridership on the King Street METRO has increased nearly 18% from three years ago. In fact, year-to-date ridership figures throughout Alexandria are up nearly 2%, where the systemwide numbers are up only ½ percent.

Construction Update Three commercial properties broke ground in the fourth quarter: a 30,630 square foot building at 124 S. West Street for the American Statistical Association; an addition and parking structure to the Alexandria Hospital at 4320 Seminary Road; and another of the five buildings for the U.S. Patent & Trademark office at 551 John Carlyle Street.

Alexandria Residential Market Large-scale residential housing starts slowed dramatically in Alexandria in the fourth quarter. A year ago, 1,546 started, while fourth quarter of 2002 saw ten – the lowest point in the City since first quarter 1993.

Northern Virginia Residential Market The prime interest rate dropped to 4.25% in the fourth quarter, down from 9.5% two years ago. The fourth quarter is typically one of the slower quarters for housing sales, but low interest rates continue to fuel Northern Virginia’s housing market. In 2002 even more Northern Virginia homes were sold in the fourth quarter than the third (2,418 in the fourth, 2,322 in the third). The average sales price also increased, reflecting home buyers’ ability to pay more, due to less expensive mortgage costs.

This quarterly analysis of the economic strength of the City of Alexandria is part of the Local Economic Indicators Report, released by the Alexandria Economic Development Partnership, Inc. (AEDP). This report is prepared as a service to the business community to provide information on the health of the City’s economy for new, relocating and expanding businesses. Additional copies of the complete report may be obtained from the AEDP offices at (703) 739-3820 or at http://www.alexecon.org/leirs.html.

For Immediate Release- 3/25/03

Contact: Marc Brambrut,
703-739-3820 xt. 12

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