A slew of headwinds aimed at the nation’s capital has commercial real estate investors holding their fire, watching and waiting to see how the upheaval shakes out.

The year began with the Trump administration commencing mass cuts to the federal workforce and spending. Seven months later, National Guard troops flocked the city after the White House initiated a “crime emergency.” And at the beginning of October, the federal government shut down and has remained so for more than a month.

The tumult is leading investors to take a back seat and await more clarity, industry executives said Thursday at Bisnow’s D.C. Capital Markets and Finance Summit, held at the Hilton hotel at L’Enfant Plaza. Some developers said they are having trouble raising money for D.C. projects, while investors said they are becoming more cautious about the city.

“We would rather wait and see how the demand side of the equation plays out after maybe a couple years of Trump policy,” said Michael Vu, principal at Chevy Chase-based investment manager Artemis Real Estate Partners.

Hoffman & Associates Senior Vice President Ryan Dring, whose firm is best known for building megaproject The Wharf on D.C.’s Southwest Waterfront, has been working to secure financing for other projects, including its 425-unit residential redevelopment of the Ballston Holiday Inn. But he said investors have spent more time than usual doing due diligence, and he has had to “handle them through the headlines.”

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