ARLINGTON, Va., Sept. 28 /PRNewswire/ -- Charles E. Smith Residential
Realty (NYSE: SRW), a real estate investment trust specializing in urban
multifamily residential properties, said today that the findings of a new
demographic study on the growth and revitalization of American downtowns bode
well for the Company's long-term strategy.
Citing the Brookings Institution study, released today at a seminar on
"The Future of the American Downtown: Building a 24-Hour Center," sponsored by
the Fannie Mae Foundation, Ernest A. Gerardi, Jr., President and Chief
Operating Officer of Charles E. Smith Residential Realty, said "We commend
Brookings for their research confirming the growth in downtown urban areas
across the U.S. From our perspective, the findings reinforce the strength of
our positioning as a premier owner/operator of quality high-rise properties in
growing urban centers including Chicago, Washington, D.C. and Boston
metropolitan areas. In fact, in the Brookings survey, Chicago is projected to
have the largest total number of new downtown residents."
"Within these downtown areas, we have long targeted the growing lifestyle
renter market of affluent, busy professionals who could afford to own but
prefer to rent because of the conveniences, amenities and services available
in our luxury apartments," added Gerardi. "In many of our properties we have
also incorporated a significant amount of retail space to support an active,
24-hour urban lifestyle and enhance the quality living experience we aim to
create for our residents."
Among other findings, the Brookings report says that "Most major American
cities anticipate an increase -- in some cases a doubling or tripling -- in
downtown residents over the next dozen years." The survey further reported:
"Today, demographic, market, and social trends are working in favor of cities
that want to entice young professionals, corporate executives, young married
couples and empty nesters to live in downtown . . . It creates a demand for a
24-hour city, with restaurants and stores open after 5 p.m., contributing to
an active night life. Downtown residents demand better services and a diverse
mix of retail, which benefit everyone who works, lives, and visits downtown."
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange (SRW). The Company and
its subsidiaries and affiliates own, acquire, develop, and manage multi-family
residential properties; and in addition, provide a full range of real estate
services to other property owners. The Company owns a portfolio of over 19,500
apartment units, has 2,500 units under construction, and manages an additional
3,500+ units for other owners. The total market capitalization of the Company
-- Charles E. Smith Residential Realty, including its Operating Partnership --
is approximately $1.8 billion. Investor information including press releases
about Charles E. Smith Residential Realty is available on the Company's Web
site at: http://www.smithreit.com, and also through PR Newswire "News on
Call" by fax 800-758-5804, ext. 101271, or at: http://www.prnewswire.com.
This news release may contain forward-looking statements regarding the
Company's outlook, including statements of goals, intentions, and expectations
regarding or based on assumptions about general economic and market
conditions, competitive dynamics and other factors that, by their nature, are
subject to significant uncertainties, some of which are discussed in the
Company's filings with the Securities and Exchange Commission. Because of
these uncertainties, and the assumptions on which statements in this release
are based, actual future results may differ materially.
NOTE: Text of Brookings Institution study follows.
Rouse Forum Survey: A RISE IN DOWNTOWN LIVING
Living Downtowns: An Unexpected Kind of Urban Revival
A new survey conducted for the Rouse Forum shows that America's downtowns
are experiencing an unexpected kind of resurgence: There is a population boom
happening in many downtowns across the country.
The preliminary survey -- conducted by The Brookings Institution Center on
Urban and Metropolitan Policy and the Fannie Mae Foundation -- looked at 21
cities around the nation and found that all but one of them expect the number
of their downtown residents to grow by 2010. For example, the city of Houston
expects its downtown population to quadruple; Memphis and Seattle anticipate
twice as many downtown residents in the next 12 years, while overall
population loss continues in many cities. The downtown trend holds for
northeastern and midwestern cities with well-established downtown residential
districts and for Sunbelt central business districts that have not
traditionally supported much housing. Anecdotal evidence suggests that people
are living downtown because they want to be near their work places and
cultural amenities, and because they enjoy a bustling urban environment.
Even cities that have lost population for decades -- Philadelphia,
Chicago, Detroit -- expect that the number of downtown residents will rise.
Philadelphia's downtown population has grown by 20 percent since 1960.
Predictions indicate that another 10,000 residents will live in downtown
Philadelphia by 2010, a 13 percent increase -- this in a city with 600,000
fewer people now than it had in 1950. Chicago's trend is even stronger, with a
32 percent predicted boost (37,000 people) in downtown residential figures
over the coming decade.
A steady influx of new downtown residents can provide significant and
lasting benefits for a city's business center. Having residents in the
business district eases rush-hour traffic jams by eliminating commutes or
enabling reverse commutes. It creates a demand for a 24-hour city, with
restaurants and stores open after 5 p.m., contributing to an active night
life. Downtown residents demand better services and a diverse mix of retail,
which benefit everyone who works, lives, and visits downtown.
Where is "downtown"?
Unfortunately, the U.S. Bureau of the Census does not officially define
"downtown." Because a standardized definition was unavailable, we asked each
city surveyed to define, conservatively, their downtown areas. We requested
that they not include surrounding neighborhoods. Thus in New York City,
downtown is defined as only the Wall Street section of Manhattan, and excludes
SoHo, Tribeca, and Greenwich Village, which, although geographically downtown,
are not part of the financial district (the other New York City boroughs are
also excluded from the calculation). In Chicago, downtown is much larger,
covering a four-mile swath that runs along Lake Michigan and takes in the Loop
(the central business district) and the Magnificent Mile.
Preliminary Survey Results:
Selected Downtown Population Growth, 1998-2010
City Current Downtown 2010 Projected Change
Population (A) Downtown (%)
Population (B)
Atlanta 13,257 (1997) 10,674 -19.5
Austin 9,555 14,805 54.9
Baltimore 13,800 (1995) 14,600 5.8
Boston 21,625 (1990) 23,580 9.0
Chicago 115,341 152,295 32.0
Cleveland 6,400 21,000 228.1
Columbus 3,800 5,800 52.6
Dallas 3,486 6,429 84.4
Denver 3,480 (1997) 9,250 165.8
Detroit 32,920 (1995) 34,753 5.6
Houston 2,374 9,574 303.3
Los Angeles 26,600 (1996) 27,000 1.5
Memphis 6,210 14,000 125.4
Miami 17,065 (1997) 33,420 95.8
Milwaukee 9,900 13,500 36.4
New York (C) 19,473 35,000 79.7
Philadelphia 75,000 85,000 13.3
Portland 10,315 14,694 42.5
San Antonio 20,910 23,600 12.9
Seattle 15,236 (1997) 33,600 120.5
St. Louis 7,860 10,360 31.8
(A) Source: Cities reported population based on census figures and
household units.
(B) Source: Cities determined projection based on developments underway,
building permits, and anticipated real estate projects.
(C) Includes Wall Street area only.
Standout Cities
New York: New York's Wall Street area is a thriving, growing residential
center. Much of the growth is attributed to the fact that obsolete office
space is being converted into apartments to meet the demand for residential
real estate. The city predicts an 80 percent jump in downtown residents in the
next dozen years. Interestingly, a survey of Manhattan's downtown residents
shows that more than half of them work elsewhere, commuting to jobs in other
parts of the city or even in the suburbs. They are mostly young (88 percent
under the age of 45), single (60 percent), and wealthy (60 percent have
household incomes that top $120,000).
Denver: Denver's overall population has increased for the first time since
1970 -- and part of the growth can be attributed to the demand for housing
downtown, where condominiums, lofts, apartments, and townhouses are leased or
sold as quickly as they are built. Denver's Lower Downtown (LoDo) -- so named
in 1990 when developers began to convert warehouses and unused office space
into lofts and apartments -- now has a distinct, vibrant, fashionable image
and is generating increased demand for housing in adjacent neighborhoods. The
city sought to maintain LoDo's economic diversity by financing some low- and
middle-income units in the neighborhood. By 2010, the number of downtown
residents is predicted to rise by 166 percent.
Houston: Houston's downtown population has risen over the past three
years, and is expected to quadruple by 2010. The city reports that most new
residents are upper-income, and the majority have no children (empty-nesters,
young singles, or married professional couples). Twelve percent of Harris
County (population 3.2 million, including Houston) residents say they would be
"very likely" to live downtown if the "right housing were available at the
right price." That translates into 384,000 potential downtown residents, or
more than 100 times the number that currently live there. Downtown residents
are drawn to the heart of the city because of its convenient location,
proximity to major employers, and amenities such as the downtown performing
arts district. Elsewhere in Texas, Austin, Dallas, and San Antonio are
predicting downtown residential demand to rise as more and more people move to
these cities and seek the cultural excitement and energy of the central city.
The Brookings Institution Fannie Mae Foundation
Center on Urban and Metropolitan Policy 4000 Wisconsin Avenue, NW
1775 Massachusetts Avenue, NW North Tower, Suite One
Washington, DC 20036-2188 Washington, DC 20016-2804
Phone: 202-797-6139 Phone: 202-274-8000
Fax: 202-797-2965 Fax: 202-274-8100
Web: http://www.brookings.edu Web: http://www.fanniemaefoundation.org
Contact: Bruce Katz Contact: Robert Lang
These preliminary Rouse Forum Survey findings were released in conjunction
with the Second Annual James W. Rouse Forum on the American City. The Forum is
sponsored by the Fannie Mae Foundation, The Enterprise Foundation, and The
Brookings Institution Center on Urban and Metropolitan Policy.
SOURCE Charles E. Smith Residential Realty, Inc.
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Related links:
http://www.smithreit.com
CONTACT:
Media, John Kurtz, 703-769-1153; Investors,
Greg Samay, 703-769-1029, both of Charles E. Smith Residential
Realty
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