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News release

WASHINGTON, D.C.

Metro DC Commercial Real Estate Market Thrives When Congress and Presidency Are Aligned


WASHINGTON, D.C., Feb. 7, 2012 – The performance of the Washington D.C. region commercial real estate market is highly correlated to the political alignment of the Congress and White House according to research from Jones Lang LaSalle.

Over the past ten years, the Metro D.C. commercial real estate market added 37.3 million square feet of new leases when the Congress and the White House were in political alignment.  This compares to only 2.1 million square feet of new leases when the political parties of the Congress and White House were not aligned, according to research recently released by Jones Lang LaSalle.

“It’s no surprise that the federal government has such an important impact on the commercial real estate market in Washington region,” said Joe Brennan, Managing Director, Jones Lang LaSalle. “What is shocking, though, is the actual magnitude of that impact.  Between 2009 and 2010 alone, the region saw over 5.0 million square feet in new leases from the federal government.”

The graphic, pictured below, shows the extent of the difference in net absorption (new leases) when the political parties in Congress and the White House were aligned (2003 to 2006 and 2009 to 2010) compared to when they were not (2001 to 2002, 2007 to 2008 and 2011).
 
 
“The impact of political alignment has repercussions beyond just federal leases,” noted Scott Homa, Vice President Research, Jones Lang LaSalle.  “Demand for commercial real estate among lawyers, lobbyists, contractors and consultants is also heavily dependent on federal policies. In an environment of political discord, these policy decisions can be tough to implement, and since our private sector leasing market is interconnected with the federal government, political alignment is critical for us to achieve true organic growth.”

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.7 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.