“The Economic Impact of Capital Square’s Projects on the Richmond Metropolitan Area: Methodology, Approach & Economic Impacts”

Capital Square engaged FTI Consulting to analyze the economic and fiscal impacts of five mixed-use projects in the Scott’s Addition neighborhood of Richmond, Virginia, during their construction and operation. Four of the projects have been recently completed (INK, VIV, GEM, and Otis), and one is starting construction (Chasen) and projects to open in the mid-2020s.

Capital Square provided information regarding its financial activities, direct employment, and the planned square footage available for rent by commercial tenants (e.g., restaurants or retail stores) or for internal Capital Square use for each of these projects. This information, along with federal data, were used as inputs into IMPLAN – an economic impact model used by academia, consulting firms, and government agencies at all levels. IMPLAN works by transforming direct employment or expenditures into their “indirect” effect on supply chains and the “induced” effect of consumer spending (e.g., the wages earned by a construction working being later spent on groceries)