(Alexandria, VA) — Alexandria’s fourth-quarter and year-end Local Economic Indicators (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 partnerships’ inception in 1981.

An encouraging indicator of the City's economic health is the fact that retail sales were up almost three percent over last year's total, including a three percent increase in 'Christmas sales,' when comparing fourth-quarter 2001 to fourth-quarter 2000.

According to Paula R.W. Riley, Executive Director of AEDP, "Retail sales are a true indicator of a vibrant economy in any city, but especially in Alexandria, where our powerful retail presence directly contributes to the quality of life of Alexandria's residents, and significantly complements our tourism industry. After a very volatile year in the local and national economies, it is encouraging to see that our retail sales were stronger than ever." The City's economy was also supported by a healthy gain in residential construction, which increased more than 165% from the third quarter. Residential construction in 2001 increased more than 110% from 2000 to a total of 2,713 units, more than 1,500 of which started in the fourth quarter. Much of the construction are multifamily units being developed in the Eisenhower Valley.

Unfortunately, unemployment is as high in the City as it has been since 1996. According to the Virginia Employment Commission, the unemployment rate increased 70% in 2001 in Alexandria from the previous year, with the largest increase occurring in the fourth quarter — a 44.4% jump from the third quarter.

However, according to Dr. Stephen Fuller, Chairman of the Institute of Public Policy at George Mason University, the local economy's strength is seen in the continuing expansion of business activities in the services and finance, insurance and real estate sectors, with complimentary gains in federal, state, and local government.

"Alexandria's core industries were not negatively impacted by the national recession or the consequences of the September 11th terrorist attacks, and helped to counter balance the losses experienced in the hospitality industry," said Fuller.

Other noteworthy indicators:

∙ Hotel occupancy was 48.4 percent with Average Daily Rate of $89.51, down from 52.6 percent fourth quarter 2000, with ADR of $91.90 ∙ Commercial office vacancies reached 9.10% in the fourth quarter, up from 8.6% third quarter, 6.9% fourth quarter 2000. Fourth quarter absorption was negative 47,350, compared with negative 119,365 third quarter, and positive 98,978 square feet fourth quarter 2000 ∙ Average residential sale prices rose in the fourth quarter to $312,867 from $278,334 in the third quarter; $276,801 in the fourth quarter 2000 ∙ The average weekday Metro ridership rose almost 3.5% from last year

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 or at http://www.alexecon.org/leirs.html.

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For Immediate Release- 4/8/02

Contact: Eric Dobson
703-739-3820 xt. 14

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