The Washington, D.C. metropolitan area is unique in the United States: few regions are as closely tied to the federal government’s size, scope, and spending. While I have seen many changes in administration having little to no effect on local real estate, when the current administration returned to the White House in 2025, the immediate ripple effects were felt not only in politics but also in real estate. From office towers downtown to suburban housing in Maryland and Virginia, policy choices and staffing patterns are reshaping the market in measurable ways.

The most visible change so far has been in the office sector. Federal agencies, long the anchor tenants for much of the District’s commercial space, have been reducing headcount and scaling back leased square footage. Early retiremen

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