[Americana:] The mega-rich are flocking to Washington DC

       
Opinion 

The mega-rich are flocking to Washington DC

Its wealthy suburbs are a draw for those seeking proximity to the Trump administration’s decision makers
Headshot for Joe Miller
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The banks of the Potomac River were largely undeveloped wilderness when the company that became wine merchants Berry Bros & Rudd was incorporated in London more than 325 years ago. The American capital that sprang up in its place, with its import duties, prohibition and lack of both rainmakers and tastemakers, was hardly a more inviting commercial prospect.

Yet Washington DC is where Berry Bros chose to open its first US branch, a glass-panelled corner shop mere steps away from the White House (and perilously close to the FT’s bureau). Favourable local regulations for importers were a factor but, as Jamie Ritchie, the mild-mannered British Sotheby’s alumnus opening Berry Bros’ American arm, told me, DC’s “wealthy community” was a big part of the draw.

A year ago, before I moved to Washington from New York, I would have mistaken Ritchie’s rationale for sarcasm. DC’s downtown is devoid of the opulence of Manhattan or Miami — a few jazz age hotels notwithstanding. Its city centre caters to the preferences, and wallets, of itinerant politicos and federal workers on tightly controlled salaries.

But as I have learnt on my weekend cycle trips through Washington’s suburbs, venture just a couple of miles north or west from the White House in Pennsylvania Avenue and you’ll see evidence of the real DC — the armies of lawyers, defence contractors, consultants and lobbyists who make recession-resistant fortunes from interacting with one of the world’s largest bureaucracies.

In no other major US metropolis will you find such uninterrupted vistas of wealth — neighbourhood upon neighbourhood of pristine colonial and Tudor-revival homes, set back from tree-canopied lanes, punctuated only by the odd country club. Five of the 10 richest US counties are DC commuter-belt suburbs in Virginia and Maryland, according to census data from 2020. You might even call it the swamp.

President Donald Trump’s proximity-dependent policymaking has prompted a fresh pilgrimage of elites to DC. Last spring, Meta’s Mark Zuckerberg made the third-largest property purchase in the city’s history, buying a $23mn mansion in Woodland Normanstone, the most well-heeled of Washington neighbourhoods. He joined (part-time) billionaire residents Eric Schmidt and Jeff Skoll who have set up bases in the city since Trump won his first presidential election.

It’s not just the mega-rich who are descending on DC. Companies such as Netflix, Nvidia and OpenAI are expanding their presence in the city, no doubt mindful that regular facetime with the administration is something approaching a fiduciary duty in a country where closeness to the president can be the difference between punitive tariffs and generous government subsidies.

There are, of course, hazard lights flashing on DC’s dashboard, at least for the more modestly paid. Tens of thousands of federal workers were laid off by Elon Musk’s former so-called Department of Government Efficiency and many have recently reached the end of their severance period. A report released by the Brookings Institution think-tank in September found unemployment in the metro area that encompasses DC was rising more than six times as fast as the rest of the US. 

Yet those with skin in the game are bullish about the city’s long-term prospects. Former AOL president Ted Leonsis, who championed DC long before Trump set his sights on the Oval Office, told me he believes Washington’s “primordial soup” — the “concentration of diplomatic and economic decision makers” — will bring yet more growth to the area. Already the owner of the city’s hockey and basketball teams, Leonsis is behind a plan to invest close to a billion dollars in renovating the arena in which they are housed, as part of a bigger bet on the downtown area.

Economists can better decipher whether Berry Bros’ new US clientele share Leonsis’s optimism about the future. Unlike European customers, they are mostly not purchasing Bordeaux en primeur wines to lay down. “[They ask] can I drink it now?,” says Ritchie. “Our range here is heavily focused on having mature wines that are ready to drink.”

joe.miller@ft.com


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