DC Faces Transformative Moment in Federal Hybrid Work Era

GSA Leasing & Federal Real Estate attorney Gordon Griffin spoke with Law360 about Mayor Muriel Bowser's new five-year plan to revitalize downtown Washington, D.C., in the wake of remote work becoming more common among government employees. Local real estate and economic development professionals are now acknowledging that office occupancy in downtown D.C. will never again reach pre-pandemic levels. Mr. Griffin points out that these new work-from-home arrangements have drastically impacted the market for new government leases and other federal real estate transactions.

"We are seeing substantially more requests from GSA for short-term extensions and standstill agreements," he said. "It appears that the agencies are still in the process of assessing their long-term needs based upon the increase in telework agreements and fully remote positions, and so they are reluctant to seek long-term leases. These short-term leases typically mean more expensive rental rates for the government."

READ: DC Faces Transformative Moment in Federal Hybrid Work Era (Subscription required)