Reply to Is there going to be panic selling?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The largest employer in DC is restructuring to cut the workforce by half. The largest employer is also the largest leaseholder and also announced giving up millions of square feet of commercial space. 
Idk if people just have their heads in the sand because they’re used to stability in this sector or if this is some form of hyper normalization to keep things steady - but I can’t fathom how wholesale RIFs and closures doesn’t hurt the DC market. 
There is no other industry in this market to take the place of gov. Even GSK / pharma /life sci - which MoCo has hung their hats on - has waned and announced departures. [/quote]

The issue is that for years people have said DC real estate can never drop and that it’s not like other locations.

Except black swan events do occur.  The fires in Pacific Palisades, 9/11 and now, a huge reduction in the federal workforce.  No place is immune and diversification is important. Whenever someone tells you that something can never be affected you should question it.

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DOGE has a target to cut 75% of federal workers, not half.  Already 10,000 are on admin leave or fired.  And those workers are a small subset of the federal contractors, businesses and vendors who depend on government spending.  Anyone saying this isn't a disaster for the DMV area isn't paying attention.[/quote]

You are assuming all of them are here.  Even government contracting is spread out and many workers already relocated during Covid and aren't coming back.  So, yes, my estimate that when it comes to the impact to DC area specifically it will be only 50%, because the rest of the 25% already took themselves out of DC metro or hadn't been here in the first place. [/quote]

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