The parking lot supply business is one of the fastest-growing segments of the retail sector, with some retailers already raising more than $1 million for their first phase of the project.
The project will be financed through private equity, and construction will begin in late 2019.
Construction will cost $8.2 million and be completed by 2020, according to a press release.
The parking lot is located at the intersection of 17th and D streets NW.
More than 400 companies have been awarded parking lot contracts since 2007, according the National Parking Association, with more than 2,300 new projects approved for construction.
A recent survey found that more than half of retailers say they have considered building parking garages, with a majority of retailers including Costco, Dollar General and Walgreens planning to begin work.
“This is a game-changing project,” D.C. Council member Charles Allen said in the release.
“The project’s going to create more jobs, lower construction costs and boost local revenue for the city.
As the number of parking lots continues to grow, we have a huge opportunity to create an even bigger economic opportunity for D.C.’s residents and visitors.”
The parking lots will be used for a variety of functions, including retail, hotel, parking garage and public transit.
Parking is not permitted in the city’s existing parking garage system, which is only open to people who own vehicles.
The city is considering creating a new parking garage for people who have been evicted from their cars, and parking is prohibited in all residential areas in the District.
“This parking lot will create a thriving retail and hotel district for the District, and it will allow us to build on the progress we’ve made in developing the Downtown Crossing corridor and provide a more vibrant and vibrant urban environment for people to come to and shop and do business,” City Manager Paul J. Wiedefeld said in a statement.