THE WEEK IN REVIEW

Welcome to my weekly newsletter featuring a personal note on the ever-evolving world of real estate along with a few news-worthy updates. Enjoy!

SLEEPY GOVERNMENT TOWN??

Whether you love the changes or hate the changes, the nation’s capital is buzzing with activity.

From layoffs, to tariffs, to executive orders, to Trump’s assertion that the Federal Government should “take over” DC,  the pace of the news cycle is dizzying. America First or America Alone? Where you stand may depend on where you sit.

25 percent tariffs on Canada and Mexico went into effect at midnight. Products from China will face an additional 10 percent tariff. But this is Washington. For every increase in costs, tariffs also mean lots of work for international trade lawyers and the industry associations whose clients and members are impacted.

Tomorrow also marks the return-to-office deadline for a lot of federal workers. So simultaneous with huge reductions in force, those who remain are returning to work, spending more money downtown, and re-prioritizing closer in locations. More activity.

Changes in G4 Visa Holders mean changes in green card access for employees from the World Bank, IMF, and other international organizations. Some are reconsidering buying, and others might need to sell and return home. Is this a net negative to high-end neighborhoods OR a much-needed bump in inventory?

The buzzy feel of DC is underscored by our sports teams. Ovechkin is within 10 goals of breaking Wayne Gretzky's NHL career record of 894. The Caps are ranked #1 in our division. Capital One Arena will get a massive overhaul following a $515 million deal to keep the Washington Wizards and Capitals in the City. The Commanders' 12-5 record is the best the Commanders franchise has had since 1991. And we could have a new stadium on the old RFK site in as little as 2-2.5 years.

On the real estate front, the big buzzworthy sales are generating regular national headlines. Commerce Secretary Howard Lutnick recently purchased Bret Baier’s Wesley Height's mansion for $25M. 3331 N St on Georgetown's Cox Row sold off market for $11.8M to an undisclosed buyer. Treasury Secretary Scott Bessent purchased Ambassador Connie Milstein's R St Georgetown home for $12.5M. Newly-elected Pennsylvania Senator Dave McCormick purchased C. Boyden Gray's former home in Georgetown for $10.5M. Kalorama's 2230 S Street NW - down the block from Jeff Bezos and originally built for former Fed chair Adolf Miller - sold for $9.350M.

Much is much yet to shake out. But one thing is certain: DC is a sleepy government town are no more!

real estate & the news

• Some like collecting Birkin bags which require a huge closet, but what size storage is needed if you collect cars?....or a big RV? Some areas around the US are struggling with neighbors building huge garages and car barns.....and some zoning does not allow for this when attached to the house. Underground garages that house 30 cars are popping up more frequently.... (WSJ)

• Is commercial real estate about to experience another wave of pain? The US General Services Administration, responsible for the leasing and management of government buildings, pays roughly $5 billion a year renting 144 million square feet of offices nationwide... About $12 billion of loans tied to commercial-mortgage backed securities are at risk from government cost cutting. (BLOOMBERG)

• Is the “knowledge economy on the way out” as A.I. disrupts the global workforce? Aneesh Raman, chief economic opportunity officer at LinkedIn, thinks we're entering the “innovation economy” where human skills such as creativity, curiosity, courage, compassion and communication will be key. (CNBC)

• The average IRS tax refund amount is down 32.4% compared to 2024, according to early filing data. As of Feb. 14, the average refund amount was $2,169, compared to $3,207 reported about one year prior.....but doesn’t include refunds receiving the earned income tax credit or additional child tax credit, which aren’t issued before mid-February. (CNBC)

around dc

earth to space

arts breaking the sky at the kennedy center

EARTH to SPACE: Arts Breaking the Sky will fill the Kennedy Center with musicians and astronauts, poets and researchers, visual artists and engineers, actors and environmentalists, architects and astronomers, dancers and scientists, filmmakers and space designers. Can insights into the marvels of the universe stimulate fresh thinking about the challenges that confront our planet? For more details visit their website here.

Lee Arrowood

Principal, Arrowood Advisory at Compass

M: 202.251.3175

O: 301.298.1001

lee.arrowood@compass.com

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