Election Will Leave Mark on Real Estate

Election years in the nation’s capital focus on the next occupant of the White House, but there’s always much more at stake in all phases of real estate activity. This year is no exception.

Astute realty/political observers here concern themselves less whether Republican George Bush or Democrat Michael Dukakis moves into the White House next January.

But both candidates and both parties are highly sensitive to the fortunes and sentiments of the housing makers and real estate developers.

Both candidates will welcome campaign contributions from people whose livelihoods and financial success depend on an ongoing strong housing market and a financial climate that is conducive to construction of new office buildings, shopping malls and hotels.

At the moment the upper-priced housing market is in a summer slump . . . apartment construction has slowed this year . . . and most big and small communities are overstocked with new office towers and glamorized warehouse spaces. Hotel vacancy rates are high and most urban areas are over-malled.

But that’s not unusual in America--a land of almost inevitable oversupply. However, there’s much optimism about the rebound in the demand for prime, high-priced new office space in mid-town Washington--often in buildings within walking distance of the White House or the Capitol.

But there’s also a sense of status quo because many economic decisions are put on hold “until the new administration takes office.”

“In the 42 years that I’ve been around this town as a newspaperman in the 1940s and as a trade association executive and then as private real estate broker, there’s always been something of a lull before a national election,” said realtor Justin Hinders.

“There will be some postponements of decisions about moving into big new office spaces in late summer and early fall but mostly our business will go on as usual. This year ‘usual’ means a slight slowdown almost everywhere except in downtown D.C. and in emerging Prince George’s County, Md., both areas where overbuilding is moderate and demand is strong.”

Another veteran realtor, Earl Farr, said a change in administration usually brings an influx of new top-grade government people. “This will be true in 1989, whether we get a Republican or Democratic President--but more so if the new leader is a Democrat and there’s a full-scale turnover in top government jobs.”