The second Donald Trump presidency’s impacts are already being felt far and wide, despite it being two months from his swearing in. An effect less recognized is that on the Washington, D.C. commercial real estate scene.
Trump’s second administration could alter the district’s commercial environment in ways big and small, the Washington Business Journal reported. It will largely depend on Trump’s administrative priorities, particularly in regards to how the federal government functions under his guise.
The biggest questions for D.C. real estate revolve around Trump’s plans for the federal workforce. He moved several agencies out of the district during his first term, including the Bureau of Land Management (which moved back from Colorado during Joe Biden’s presidency). A further redistribution of the agencies would take rent contributions out of the pockets of local landlords.
More severely, Trump can follow through on plans to gut the federal workforce altogether. The Department of Education and the Environmental Protection Agency are already in the crosshairs. Reducing employees — or eliminating departments entirely — could further remove office tenants from the region.
One way in which Trump may benefit local office landlords is by calling the workforce back into the office five days a week. That could be a boon to both building owners and local businesses, though it could equally be offset by any significant changes in how many people are employed on the federal level.
There are other real estate implications from Trump’s election that remain to be seen. During his first term, he issued an executive order requiring classical architecture to be the preferred style of federal buildings, which Biden rescinded.
Additionally, Trump could try to take more control of the local government, which would strip power from the mayor and local council.
A potential bright spot for real estate players and investors in the area is that there’s finally clarity on who will be in charge, even if there’s not clarity on how that will impact the industry.
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