Economic expansion in the D.C. metro region has outpaced the U.S. average over the past decade. This trend will likely continue into the near future. The regional economy is becoming increasingly diversified, which is expected to help sustain job growth.
Following the 2016 presidential election, unified party control—along with expected increases in defense spending—will likely boost demand in key regional occupier sectors, such as law firms and government contractors. This in turn is anticipated to drive economic growth and real estate demand.
For the D.C. office market, demand in the top segment will continue to outpace aging commodity space. While large tenants continue to seek efficiency, growth is expected to be driven by expansions from small- to medium-sized tenants and in nontraditional sectors.