D.C. developers weigh in on Janeese Lewis George's housing promises
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Incoming D.C. Mayor Janeese Lewis George at her election night party in June. Photo: Maxine Wallace/The Washington Post via Getty Images
Mayor-elect Janeese Lewis George campaigned on protecting tenants while getting more homes built in D.C. — 72,000 in five years.
- Developers say she has her work cut out for her.
Why it matters: D.C.'s development market has slowed dramatically amid federal job losses, unpaid rent, regulatory hurdles and high financing costs.
What they're saying: Developers welcome JLG's promise of higher-density development and expedited permitting, but say those changes alone won't be enough to fix the current market.
- "There needs to be a full-on PR campaign in D.C. to change the stigma around investing [here]," says Ian Ruel of commercial real estate group Feldman Ruel.
- Ruel says D.C.'s tenant-friendly policies have instead driven developers toward places like NoVA, which some see as "more pro-business" with "more perceived growth."
Instead, several experts Axios spoke with want JLG to address the same thing right off the bat: unpaid rent.
- "It's fundamental, because without those rent revenues, buildings can't really operate," says Peter A. Tatian, an Urban Institute housing expert. "It's putting a lot of the housing at risk."
- Tatian also says stabilizing and preserving existing affordable housing should be prioritized before focusing on new builds.
Reality check: Developers praised Lewis George's housing ambitions, but questioned whether she can deliver.
- "99% of developers would say that's not achievable by any stretch of the imagination," said Nigel Crayton of commercial real estate group Greysteel, adding that such a goal could show JLG doesn't fully understand "how hard it is to get things off the ground and built."
And the big question: Can Lewis George be both tenant-friendly and pro-business?
- Brad Fennell of the development and property management group WC Smith is hopeful, pointing to her willingness to engage with developers.
- "Part of what has transpired in the last couple of years is a lack of trust, and I think that she's focused on trying to build trust," he says.
Tatian puts it more simply: "I don't think it's a question of whether you can," he says. "You must."
The other side: "There isn't a single silver bullet fix for the host of issues in our housing ecosystem," Lewis George told Axios in a written statement. "I will work to break down silos and rebuild trust between all stakeholders so we can bring business back to the District and make sure that working Washingtonians are the ones who benefit."
- Lewis George said that she wouldn't let larger macroeconomic factors dissuade her from making good on her promise to build more housing, and that the current "status quo is not working for tenants or landlords."
JLG has previously said she'll address unpaid rents and build city-owned, mixed-income housing, though the details of her mayoral agenda are still forthcoming.
- Her housing transition committee includes tenant advocates and affordable housing experts, but no current developers, City Cast reports.
What we're watching: How Lewis George balances those priorities when she takes office in January.
- And whether the rewrite of D.C.'s comprehensive plan helps pave the way for more housing.
The bottom line: Many developers remain optimistic about D.C.'s growth.
- Crayton points to the city's walkability, transit and high concentration of educated professionals. "Once this gets fixed, I think we see a return to the District."