_Washington takes Trump in its stride
Washington takes Trump in its stride
Intelligence
The Trump Administration has had a modest impact on investor and occupier demand for commercial real estate in the Washington Metro area, a trend that is likely to continue into 2018. By Alexander (Sandy) Paul, Senior Managing Director, National Market Research, Newmark Knight Frank.
The president spoke on the campaign trail of ramping up spending on infrastructure, which could improve access to new and existing developments as well as benefit the region’s beleaguered subway system, but he has already run into opposition from his own party’s budget hawks in Congress.
A renewed focus on defense spending — the president included an additional US$54 billion in his budget proposal compared with the current Federal outlay — could elevate local office sub-markets with high concentrations of defense contractors, particularly in Northern Virginia. However, proposed cuts to discretionary spending elsewhere could offset much of that impact.
More broadly, there have been concerns since the election that the new president’s unpredictability could convince foreign investors that the U.S. and Washington DC are no longer safe havens for capital. However, the relative strength of the American economy compared with others around the globe will likely keep foreign investment dollars flowing into U.S. markets—including that of the nation’s capital.
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