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Political Control

POLITICAL CONTROL
WHO RUNS WASHINGTON AND THE IMPACT ON OFFICE SPACE DEMAND
 

This white paper addresses ways in which political control of the White House and Congress may or may not affect the Washington region's office market. Key findings of the report include:

  •  While several theories have been presented about the effect of political control on office market conditions in the Washington metropolitan area, or more specifically, that either the Republican Party or Democratic Party is a greater driver of demand for office space, our analysis has found that neither party has demonstrated a clear, causal link to greater or weaker office absorption in the Washington market.
  • Exogenous events, such as economic recessions and market bubbles, play a much greater role in influencing office absorption than control of the federal government by either political party.
  • While presidential election years cause some measure of uncertainty in the national economy, the Washington region's economy and office market tend to be insulated, and show little fluctuation as a result of election-year uncertainty.

The report details major historical events that influenced office absorption in the Washington region over the past 36 years. It also includes an outlook section exploring events brewing in the economic and geopolitical climate that could impact office space demand in the future. It concludes with recommended action steps for tenants and for owners of office space in the Washington area.

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