WASHINGTON, DC-As President Obama and Congressional leaders work on how and when to possibly dissolve Fannie Mae and Freddie Mac, the impact on the local real estate market of the closures will likely not be felt for a number of years.
The House and Senate have started working on legislation. Neither proposal is close to becoming law, and a winding down of either organization could take years, according to the Washington Post.
Once both agencies are shut down, the agencies' significant office portfolio will bring a huge amount of space to the market. For example, Freddie Mac's headquarters is located in 800,000 square feet of space on a 38-acre campus on Jones Branch Drive in Tysons Corner. Fannie Mae has 7,000 employees, with 65% of its workforce located in the Washington, DC area. The majority of Fannie Mae's workers are housed at its corporate headquarters at 3900 Wisconsin Ave. NW.
Spokesmen for both agencies say their respective leaderships have not begun to plan for a departure from their existing headquarters. “We expect the transition from today's housing finance system to the future system will be a multi-year process,” Fannie Mae spokesman Andrew Wilson stated in an e-mail. “In the meantime, we remain focused on helping people buy, refinance or rent a home.” See story in the Washington Post.
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