Mayor: Jennifer P. Dougherty

Contact: Kate Shiflet
Phone: 240-629-6360
Date: June 14, 2005

Business Survey Reveals Strong Economy in Downtown Frederick

The City of Frederick Department of Economic Development and Downtown Frederick Partnership are pleased to announce the results of the 2005 Business & Organizational Survey & Inventory Project. Data has been compiled and a full report created that offers a snapshot of Downtown Frederick’s business climate. Results suggest downtown is a flourishing mixed use center of the greater Frederick community.

Downtown Frederick offers an authentic, historic urban district in which for-profit, non-profit, and governmental groups can thrive. Vibrant Main Street communities like Frederick’s have made a comeback in recent years, with new and expanding businesses, a growing number of residents, and increasing visitor counts. Downtown Frederick’s success has not gone unrecognized. In May, the National Trust’s Main Street Center chose Downtown Frederick as one of five Great American Main Street Award winners. Results of the recent business survey offer further insight into this unique community, which seamlessly blends arts, innovation, commerce, and history.

Between February and April 2005, the City of Frederick Department of Economic Development and Downtown Frederick Partnership administered a mailed survey of downtown businesses and organizations.

“We’ve known that Downtown Frederick has been experiencing economic revitalization, with a great variety of successful businesses and organizations located here,” said Richard Griffin, director of Economic Development for the City of Frederick. “This survey project has quantified that economic success and allows us to better understand, describe, and restructure downtown’s unique economy.”

From the responses of 146 businesses and organizations (a 25% response rate), some impressive figures have been calculated: overall, Downtown Frederick has nearly 600 businesses and organizations that are estimated to employ over 5,000 full and part-time workers and occupy nearly 2 million square feet of commercial space. Most of Downtown Frederick’s businesses are small and independent, with about 3-4 employees; over half have been in operation for over 15 years. Many businesses pay annual lease rates around $11-12 per square foot, and generate about $400,000 in sales activity per year.

“The numbers on Downtown Frederick quantify the community’s economic vibrancy. From survey results, we’ve estimated that downtown generates $375 million in annual gross sales revenues – quite an impressive number that highlights the impact of many small but successful enterprises,” said Kate Shiflet, project manager for the survey and inventory project.

The survey helped gather qualitative information about downtown as well as quantitative figures. Survey respondents cited their reasons for locating within Downtown Frederick. These included downtown’s visible, central location (the “heart of the community”), strong customer base, relative ease of commuting, and attractive properties. Frederick’s skilled workforce, proximity to the District of Columbia, quality of life, and downtown anchor institutions also attracted many businesses. Respondents were also able to voice comments and suggestions about downtown.

A growing information technology sector was a key trend revealed through the project. Some of the most recent additions to Downtown Frederick are innovative information technology businesses; 20 information technology-related firms now call Downtown Frederick home. Like other establishments, the information technology firms were attracted to downtown’s quality of life, local workforce, and historic architecture.

“These firms have located in renovated industrial spaces like the Glass Factory because they prefer unique, inspiring architecture not found in ‘vanilla box’ style office parks,” said Kara Norman, director of the Downtown Frederick Partnership. “They also enjoy downtown’s amenities and opportunities for networking with other firms.” Information technology firms garner some of the highest gross sales revenues downtown and add cutting-edge products and services to downtown’s business mix.

With many strengths and promising trends, Downtown Frederick seems poised to continue experiencing economic success. Opportunities still exist for improvement downtown; the survey revealed an undersupply of certain business types as well as underutilized spaces. Though Downtown Frederick has a strong retail base, downtown has few overnight accommodations; only two bed and breakfasts are located within the study area. As indicated by retail experts, the market could absorb a full-service hotel and meeting facility. There also appears room for additional retail activity in this already strong shopping and dining destination.