D.C.’s most prominent office owners say the city isn’t properly accounting for plummeting property values in the office market and could face major budget issues if it doesn’t take action.
Those property owners — including the heads of JBG Smith, Carr Properties, Akridge, Hoffman & Associates and more — signed a letter to D.C.’s top officials raising concerns over the “very troubling” state of the city’s office market and the risks it could pose to its fiscal health.
Property owners that spoke with Bisnow said D.C. is operating without a plan to account for tens of millions of dollars in lost future revenue and isn’t properly evaluating the market’s conditions. They are urging officials to meet with them to understand the shortfall and develop a way to address the impending budget gap.
“They need to wake the hell up and do things differently, because the way they’re doing things now, it could lead to economic disaster, frankly,” said Paul Dougherty, principal of developer PRP and one of the signatories of the letter.