Alexandria’s economic leaders and city officials are charting a new course for the city’s economic future at the Alexandria Economic Summit, which began at 3 pm on Thursday (May 8) at the Westin Alexandria.
The summit, described as a continuation of similar efforts from 2007, brings together city leaders, business representatives, and economic development experts to create a comprehensive strategy for Alexandria’s growth.
“Our city, like many others, is at a critical inflection point,” Mayor Alyia Gaskins said during his opening remarks. “We are facing headwinds from almost every direction, whether it’s global shifts like rapid automation, artificial intelligence and changing consumer habits, rising prices, cuts to the federal workforce, shifting in federal spending and even the ripple effects that we’re starting to see from tariffs or climate change.”
The summit comes at a pivotal time as Alexandria faces significant economic challenges, including potential federal workforce reductions and changing work patterns following the pandemic.
Stephanie Landrum, President and CEO of the Alexandria Economic Development Partnership (AEDP), noted that the summit represents an important opportunity to rethink the city’s economic vision.
“Following that big swing, we, under the leadership of city council, decided that doing another summit like this, to really have a community conversation around the future of how we grow, would be a great way to spend some time,” Landrum said.
The first hour of the summit featured opening remarks and a panel discussion on current economic development trends. The panel included Jon Roberts, managing partner of TIP Strategies; Stephanie Jennings, research director for the Mid-Atlantic at CBRE; and Megan Welch, vice president of knowledge work for the Virginia Economic Development Partnership.
Panelists discussed several key challenges facing Alexandria’s economy, including the impact of remote work on office space demand, the role of artificial intelligence in reshaping the workforce, and the effects of potential federal workforce reductions.
Jennings shared that office vacancy rates in the region remain high, with Alexandria’s rate around 22%, though Old Town is performing slightly better at 18%. She noted these figures are still well above the 10-12% equilibrium rate considered healthy for the market.
“Once the vacancy rate gets up into the upper teens and into the 20s, and if it stays there, then we start to have other concerns about tax base and economic development,” Jennings explained.
The panel also addressed the growing importance of quality office space, with Welch noting a “flight to quality” among businesses seeking premium locations.
“Companies are looking to locate where their future talent is,” Welch said, adding that many businesses are now choosing locations based on quality of life factors that will attract younger workers.
On the topic of artificial intelligence, panelists expressed optimism about its potential to enhance productivity rather than replace workers.
“The way that we view AI is that it is a tool to enhance efficiency and productivity. I do not believe that it’s going to be replacing workers. It’s going to be freeing up time for our highly skilled workers to take on more higher order tasks,” Welch said.
The summit’s agenda includes several additional components scheduled for later in the day, including a presentation of key findings by TIP Strategies, a keynote presentation by Kevin Kelley of Shook Kelley, and breakout sessions focused on place-based development, business retention and recruitment, and entrepreneurship and innovation.
Mayor Gaskins emphasizes that the summit’s goal is to create an actionable strategy that builds on Alexandria’s strengths while addressing its challenges.
“Our path forward must be grounded in the vision of our residents and our businesses, but also the insights of our data. Because when we listen deeply to our community and we pair that wisdom with strong analytics, we’re going to be able to create a strategy that is not only innovative and impactful, but one that is actionable and enduring,” Gaskins said.
The mayor added that the resulting strategy will be “inclusive, sustainable, holistic, and powered by partnership.”
The summit represents the first comprehensive economic strategy development effort for Alexandria in more than 15 years. Landrum pointed to the success of the 2007 summit, which led to transformative projects including the redevelopment of the waterfront, the Metro at Potomac Yard, and public art installations to drive tourism.
ALXnow will follow up with officials and the AEDP after the summit concludes to report on the outcomes and next steps for Alexandria’s economic development strategy.
