The struggle of the office — trying to bring workers back in, save the many B and C Class buildings that are losing value and popularity, and keep things from crumbling — has been widely seen in private markets.
Now, it’s landing hard in Washington, D.C. The Wall Street Journal reports that the Trump administration wants to sell two-thirds of the government’s office stock to the private sector. Furthermore, the paper reported a claim by Washington, D.C.-based developer Don Peebles, chairman and chief executive officer of Peebles Corporation, that the General Services Agency will cancel leases on 70 million square feet of D.C. office space that is privately owned.
The actions could have a significant impact on the D.C. property market. Many landlords depend on the government as an anchor tenant. If the space is suddenly cut loose, it could fall in value and leave owners without many options.
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