US Capital Sputters As Federal Workers Stay Home

Washington’s role as the US capital makes it reliant on government workers for its economic success — and many are choosing to stay home, perhaps for good, leaving vast federal offices empty and the city struggling.

From restaurants hosting federal lobbyists to world-class cultural centers, the city’s fortunes have long been tied to the government employees who operate the machinery of the state.

Now, more than three years after the Covid-19 pandemic forced the United States government to rely on telework, long-term remote work is having painful consequences for the local economy.

Washington’s workers are coming into the office less than half what they were before the pandemic, according to Kastle, which manages entry badges for 40,000 companies across the country.

“The DC office market is dying,” Chris LeBarton, director of market analytics at the real estate data company CoStar told AFP in an interview at the company’s offices downtown.

“If you can’t get the federal government back to Washington, DC, even at three days a week, good luck,” he said.

“Because the rest of this, largely, is offshoots of that,” he added, waving at the city around him.

– ‘Economic engine’ falters –

While many federal employees relish working from home, the impact on the city’s commercial real estate sector — also hit by a toxic combination of high interest rates and tighter bank lending — has been severe.

The federal government occupies almost a quarter of commercial property in the downtown area, historically the “economic engine” of the city, the Office of the Deputy Mayor for Planning and Economic Development (DMPED) told AFP by email. Click HERE to read more.