X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-A new report by Cassidy & Pinkard Colliers found that the greater Washington area will benefit the most from the American Recovery and Reinvestment Act of 2009. This is not a surprise–in general when the economy goes into recession population growth in the DC metro area exceeds other cities by 15% to 20%–reports author Kevin Thorpe, tells GlobeSt.com. Given the extent of this particular stimulus–$787 billion and counting–the DC area is positioned to realize a disproportionate level of job growth, which will eventually translate into higher demand for office space.

For every $1 billion in federal procurement spending in the DC region, 7,000 new jobs are typically created, Thorpe says. Not all–but much–of this growth will occur here. Applying that ratio to the stimulus and estimated Federal Budget, Thorpe says the DC region stands to gain an additional $23 billion in federal spending over the next three years–more than double the spending during the S&L crisis, but less than the war spending from 2002 to 2004. This would translate into 30,000 new jobs by the end of 2010, and nearly 64,000 total by 2019.

Already the DC office is seeing the positive affects of the stimulus spending. The Department of the Treasury has created 200 full-time positions in a new Office of Financial Stability and the Federal Reserve has put in requirements for expansionary space. The report finds that 270,000 square feet of office space absorption can be associated with the financial bailout at this point. Furthermore the analysis did not include the Obama Administration’s latest budget proposal totaling $3.6 trillion.

Of the 27 Federal agencies most likely to be impacted by the stimulus package, 23 are located in the District, two in Maryland, and two in Northern Virginia. With the majority of spending slated for transportation, energy, and education projects, the District’s Southwest/Southeast submarket is expected to benefit the most–by 75%–from the stimulus bill, the report finds. Next is the East End, which is likely to be impacted by the $23.5 billion or 10% of the total allocations for projects related to the environment, commerce, and engineering.

In Maryland, the Bethesda submarket will be impacted by the $10 billion appropriated for health research, and Northern Virginia’s Ballston and I-395 submarkets will be impacted by the $3 billion allocated for science innovation and defense spending.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.