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Republican challenger Carl DeMaio has conceded defeat in the tough, expensive race against incumbent Rep. Scott Peters (D-San Diego).

DeMaio made his concession in an interview Sunday with the Associated Press, which on Friday had declared Peters the winner in the 52nd Congressional District.

DeMaio trails Peters by 4,771 votes with an estimated 6,000 to 8,000 votes to be counted, according to the county elections department. The count has Peters at 51%, DeMaio 49%.

Peters, 56, an environmental lawyer and former San Diego City Council member, was seeking a second term representing a district that includes Coronado, Poway and a northern stretch of San Diego.

DeMaio, 40, also a former council member, was defeated for mayor in 2012 by Democrat Bob Filner. When Filner resigned as mayor amid allegations of sexual harassment, DeMaio opted to remain in the congressional race rather than make a second attempt at becoming mayor.

The DeMaio-Peters race was marked by a flurry of political allegations and more than $10 million in spending by the two camps. DeMaio was also hit with allegations of sexual misconduct by two former staff members.

One of the allegations was investigated by the police department. The district attorney declined to file charges, citing insufficient evidence. The second allegation was made two days before the election.

DeMaio, who is gay, had campaigned as a "new generation Republican" who believes in the party becoming more inclusive and dropping its focus on wedge issues such as marriage and abortion.

But Peters responded that DeMaio's record on the council was that of a divisive figure who alienated members of both parties. Peters' television commercials showed a film clip of DeMaio speaking to local tea party members about his appreciation of their support.

In his interview with the Associated Press, DeMaio declined to say whether he will run for office again.

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Republican concedes San Diego congressional race to incumbent Democrat

Last weeks midterm elections put the Senate majority in the hands of the Republicans, and the switch is having ripple effects on K Street, where business revolves around connections to the parties in power.

Lobby shops are anticipating a flurry of movement between now and the first quarter of 2015, with staffers leaving Capitol Hill for jobs at downtown firms, and lawyers and lobbyists leaving private practice to take staff positions for members of Congress. The revolving door is typical following an election.

And the House and Senate being controlled by the Republicans brings fresh opportunities for lobby firms, regardless of the party with which they associate. Many predict that legislation that has been stuck in gridlock, such as tax reform, will be put on the front burner. And that could mark a turnaround in business on KStreet, which has largely been in a slump for the past three years, as one of the least productive congressional sessions in history slowed the passage of major legislation.

Were very excited, said Marc Lampkin, a Republican lobbyist who heads the bipartisan public policy group at Brownstein Hyatt. Theres going to be more activity. [Sen. Mitch] McConnell and [Speaker John A.] Boehner are going to work to prosecute regular order and work through a lot of things that have been slowed down in the legislative process. From the K Street perspective, that means theres opportunity because corporations and trade associations affected by Washington power will be looking to invest in those policy decisions.

Most large lobby shops, including those that have been historically aligned with a party, are now largely bipartisan. Most firms employ lobbyists with ties that run the gamut of key targeted groups: House Republicans, Senate Republicans, House Democrats, Senate Democrats and the executive branch, which in recent years has become a bigger focus of lobbying efforts because many important regulations in areas such as energy and health care have come from federal agencies, not Congress.

We have always sought to build a deep and experienced bipartisan team capable of addressing our clients issues from any angle, regardless of who holds the majority in Congress, said Don Pongrace, a Democratic lobbyist at Akin Gump. While these elections do present an opportunity for considering new initiatives and agendas, our fundamental strategy of recruiting and retaining individuals with a diverse array of backgrounds and perspectives remains unchanged.

Policy expertise such as helping write a tax bill or working on tax policy in the private sector will have a bigger influence on hiring than political affiliation, said Kara Calvert-Campbell, a lobbyist at the boutique tech lobby shop Franklin Square Group. Calvert-Campbell is a former Senate Republican staffer, and the firm was founded by two Democratic lobbyists.

Politics drives us less, she said. What happens as a result of those politics ... hot issues like tax, trade, patent reform, thats what helps us determine whether we need to hire someone new in that area.

Although Republicans will gain control of the Senate, 52 to 45, they did not win it by a wide enough margin to shut out Democrats.

You still have not achieved the elusive 60 or 61 [majority], which means to accomplish things, youre going to have to have some level of bipartisan cooperation, Lampkin said. While Senate Republicans will be setting the agenda, Senate Democrats will be an important part of solving these big policy debates. The winning firms will be the firms that have great strength with Republicans in Senate and Democrats in Senate.

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Republican wins mean more activity in Congress, more work for K Street

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