WASHINGTON, DC-Over the next several days GlobeSt.com will be looking at the impact sequestration is having on the local economy. Today we catch up with Ernest D. Jarvis, First Potomac's SVP for his take on what is happening.

What I think about the sequester so far: The idea that federal spending cuts will have an outsized impact on Washington's fortunes remains a worrisome cloud of uncertainty over the city. However, it's looking as if the impact of sequestration won't be as dire as first predicted.

What I thing about the DC area market: I firmly believe there is still no better place to be engaged in the business of commercial real estate than in Washington, DC.

The market is steady and moving and over the past few months, an unwelcome pause in office space leasing and regional job growth has, at least so far, failed to dent Washington's confidence in its prospects. According to CBRE's Jeffrey Kottmeier, metro area job growth, as the main driver of office space demand, is forecast to climb from just above 28,000 this year to over 43,000 in 2014, or well above the 20-year historical average of 32,000.

Other signs I think that are encouraging: We're seeing a monthly influx of approximately 1,100 people into our midst with an average age of 32 and an income of $81,000. Those are some very appealing demographics. These newcomers want a live, work, and play environment that's sustainable, efficient and urban. They don't want to commute from the suburbs and are playing a significant role in creating burgeoning neighborhoods such as NoMa.

What I would tell local officials: Instead of only focusing on the distribution of existing jobs and economic benefits, local governments will have to seek to strengthen the city's core competitiveness in attracting and retaining the private investment that creates new jobs and prosperity. If we can manage that, we will have completed the transformation of Washington to the world-class metropolis and that will monopolize the conversations among local boosters.

Instant Insights /

Jarvis: Why I Think DC is Doing Just Fine

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