WASHINGTON, DC–Lobby shops are prepping for some major work in the weeks and months ahead. For the first time in since 2009, both houses of Congress and the White House are aligned politically. That means, instead of the political logjam under the divided government of a Republican-led Congress and the Obama Administration, initiatives are expected to pass from Congress to President Trump's desk, addressing a wide range of issues from a corporate tax overhaul, health care, immigration and infrastructure. For starters.

For the District this means one thing: more space will be required.

Tenant demand in Metro DC has historically been very closely correlated with the number of bills enacted into law by government, according to a JLL report.

It has found that, since 1981, Congress has enacted an average of 490 bills per two-year session. Under gridlocked government over the past six years, legislative progress has fallen by 43%, with an average of just 275 bills enacted into law. In that time, the Metro DC office market has suffered a cumulative 1.4 million square feet of negative net absorption, according to JLL.

By contrast, it continued, aligned government typically enables the easy passage of bills. In 2003-2004, when both chambers of Congress had a Republican majority and President George W. Bush was in control of the White House, 504 bills were signed into law and the regional office market recorded 18.0 million square feet of positive net absorption.

JLL's conclusion? Broad support for defense and infrastructure spending — and a repeal of sequestration for programs related to defense and public safety — is likely to fuel increased federal procurement spending. Recognizing the growth opportunities in the marketplace, the US aerospace and defense sector – which includes many of the largest tenants in the Metro DC region – has seen its market cap increase by 7.2% since the election, it said.

For the District this means one thing: more space will be required.

Tenant demand in Metro DC has historically been very closely correlated with the number of bills enacted into law by government, according to a JLL report.

Instant Insights /

Tenant Demand in DC Could Soar Now That the Government Is Aligned

Related Stories

Recommended For You