D.C. Suburbs Squeezed by Federal Budget Cuts

After a decade of phenomenal growth driven by security and stimulus spending, recent cuts to the federal government's budget are being felt throughout D.C. As office vacancies fall nationwide, they're rising in the Washington area.

1 minute read

May 15, 2013, 11:00 AM PDT

By Jonathan Nettler @nettsj


"Federal budget cuts are taking a toll on the office parks that have mushroomed for years in the capital's suburbs, along with the retailers and restaurants that depend on government workers," reports Eliot Brown. "As office markets in other suburban areas are gradually rebounding with the growth of the private-sector labor force, vacancies are rising in the gently rolling hills of northern Virginia and suburban Maryland—home to many a defense contractor and federal agency."

"To be sure, the Washington-area market is still considered healthy, particularly compared with many suburban areas outside New York and Chicago, where vacancies top 20%," adds Brown. "In addition, federal spending is still expected to grow in the long term, and with it, jobs will likely follow."

"But for now, the trajectory change is rippling through the region."

Tuesday, May 14, 2013 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

People biking along beach path with moored ship in San Diego, California.

San Diego Adopts First Mobility Master Plan

The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

May 2 - SD News

Sleeping in Public

Housing, Supportive Service Providers Brace for Federal Cuts

Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.

May 2 - KSL

Conductor walks down platform next to Amtrak train at station in San Jose, California.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement

An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.

May 2 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Senior Manager Operations, Urban Planning

New York City School Construction Authority

Building Inspector

Village of Glen Ellyn

Manager of Model Development

Central Transportation Planning Staff/Boston Region MPO