WASHINGTON, DC–The nation waits, anxiously, eagerly, impatiently for the results of the US presidential election. The differences between the two candidates are vast and, in almost every area, their policy positions are almost polar opposite.
For the District and surrounding region, there is one more issue on the list: how would the area fare under a Clinton Administration or a Trump Administration. JLL has done a breakdown of the issues. Namely, what would happen with sequestration — aka the Budget Control Act — which has been in effect for several years now. There is no doubt sequestration has hurt the region and the area's CRE community. JLL calculates it has led to a peak-to-trough decline of 26,700 federal jobs, or a 6.9% reduction in the workforce.
A Shifting Tenant Composition
Both presidential candidates support repealing sequestration — however, the tenant composition of the region is likely to shift depending on which candidate assumes control of the White House, JLL has concluded.
Clinton has previously called for reducing the size of the contractor workforce by 500,000 employees and shifting many of those jobs to the public sector. Trump's Contract with the American Voter plan, by contrast, freezes hiring for federal employees (exempting military, public safety and healthcare workers), while growing the contractor base and shifting federal resources to the private sector.
JLL writes that the region should:
Expect a Trump presidency to accelerate the decline in federally leased office space, but balance out that decline with a boost to the contractor community. The inverse is likely to occur under a Clinton administration, in which GSA inventory is likely to hold steady or expand, while the rate of growth among contractors will be restricted, but likely less severely than recent years past when Sequestration culled millions of square feet of contractor-leased inventory.
WASHINGTON, DC–The nation waits, anxiously, eagerly, impatiently for the results of the US presidential election. The differences between the two candidates are vast and, in almost every area, their policy positions are almost polar opposite.
For the District and surrounding region, there is one more issue on the list: how would the area fare under a Clinton Administration or a Trump Administration. JLL has done a breakdown of the issues. Namely, what would happen with sequestration — aka the Budget Control Act — which has been in effect for several years now. There is no doubt sequestration has hurt the region and the area's CRE community. JLL calculates it has led to a peak-to-trough decline of 26,700 federal jobs, or a 6.9% reduction in the workforce.
A Shifting Tenant Composition
Both presidential candidates support repealing sequestration — however, the tenant composition of the region is likely to shift depending on which candidate assumes control of the White House, JLL has concluded.
Clinton has previously called for reducing the size of the contractor workforce by 500,000 employees and shifting many of those jobs to the public sector. Trump's Contract with the American Voter plan, by contrast, freezes hiring for federal employees (exempting military, public safety and healthcare workers), while growing the contractor base and shifting federal resources to the private sector.
JLL writes that the region should:
Expect a Trump presidency to accelerate the decline in federally leased office space, but balance out that decline with a boost to the contractor community. The inverse is likely to occur under a Clinton administration, in which GSA inventory is likely to hold steady or expand, while the rate of growth among contractors will be restricted, but likely less severely than recent years past when Sequestration culled millions of square feet of contractor-leased inventory.
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