WASHINGTON, DC-As expected the Republicans swept into power yesterday, claiming the necessary 39 seats for a majority shortly after midnight eastern standard time. Indeed, when all is said and done the Republicans are expected to have gained 50 seats in this election. The Senate stayed under Democratic control, with its numbers eroded.

The widespread assumption is that these results will translate into political gridlock. However, the Republicans’ majority in the House will give them an edge in certain areas that have a direct impact on the commercial real estate space, starting with rule-making for the financial overhaul as well as the future direction of Fannie Mae and Freddie Mac.

Barney Frank, who at one point appeared in for a tough slog for his seat, won re-election. It was a hollow victory, of course, as he is losing his post as head of the House Financial Services Committee. Set to take his chairmanship most likely is Representative Spencer Bachus of Alabama. Bachus will be leading much of the oversight with the rule-making for Dodd-Frank. He will also be a key voice in the discussions for the overhaul of Fannie Mae and Freddie Mac.