(Photos from left, Sen. John McCain, Sen. Barack Obama, Sen. Hillary Clinton)
(The first quarter Metro DC MarketSmart statistics, prepared by the Jones Lang LaSalle Mid-Atlantic Research Group, finds that absorption of excess o
ffice space in metro DC, Northern Virginia and suburban Maryland will largely depend on who is elected to the White House in November. See explanation below.) (Photo of Capitol Building at right)
ffice space in metro DC, Northern Virginia and suburban Maryland will largely depend on who is elected to the White House in November. See explanation below.) (Photo of Capitol Building at right)WASHINGTON, DC--Uncertainties regarding the recovery of the national economy and specifically, the housing, construction and financial sectors, will dampen overall office market fundamentals both nationally and regionally in 2008, according to Metro DC first quarter 2008 MarketSmart statistics prepared by the Jones Lang LaSalle Mid-Atlantic Research Group.
However, regionally, the lack of federal spending growth and excessive new supply delivering to the market, will be the true catalysts that lead to a continued overall softening of demand and increase in space options over the coming quarters.
However, regionally, the lack of federal spending growth and excessive new supply delivering to the market, will be the true catalysts that lead to a continued overall softening of demand and increase in space options over the coming quarters.
While occupancy growth will remain muted for 2008, vacancy levels were expected to soar upwards throughout all three jurisdictions due to the quantity of new supp
ly hitting the market over the next 24 months. Northern Virginia vacancy levels will peak at the end of 2008, while Suburban Maryland and Washington, DC vacancy levels will peak in the first half of 2009 and the first quarter of 2010, respectively.
ly hitting the market over the next 24 months. Northern Virginia vacancy levels will peak at the end of 2008, while Suburban Maryland and Washington, DC vacancy levels will peak in the first half of 2009 and the first quarter of 2010, respectively. How soon the excess space is absorbed in each jurisdiction over the coming years will largely depend on whether Senator McCain, Obama or Clinton is elected to the White House.
A McCain White House would yield continued record levels of defense and benefit Northern Virginia, while a Clinton or Obama White House, would yield continued increases in intelligence, security and defense, but at slower levels, leading to gains in life science budgets, which benefit Suburban Maryland, and general government agency budgets, benefiting the District.
For more detailed information on the metro DC, regional and national markets, please contact:
John Sikaitis
202.719.5839
The Jones Lang LaSalle Mid-Atlantic Research Group 
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