From the Ground Up

Commercial Real Estate Remains Strong

The Washington area's commercial real estate market continues to be one of the top-performing in the nation, with low vacancy rates and high rents. Government agencies and contractors, law firms, educational groups and associations continue to lease large chunks of space.

Because the market is strong and relatively stable, compared with other cities that depend on volatile industries, investors flush with cash are seeking to buy up buildings. In recent years, these investors — mostly private-equity firms and pension funds — have driven up the price of real estate in the Washington region to levels that some say may be nearing a bubble. Data collected by regional real estate firms give the following rundown of some of the biggest real estate deals of 2006:

The Region's Biggest Deals in 2006

District
Address Location Size (Square Feet) Price per Square Foot Buyer Seller
1801 Pennsylvania Avenue, NW Downtown 183,200 $816 Pembroke Real Estate Mark Winkler Company
1501 K Street, NW Downtown 377,863 $782 JP Morgan KanAm
1875 Pennsylvania Avenue, NW Downtown 284,000 $700 Eastbanc Mark Winkler Company
1808 Eye Street, NW Downtown 32,529 $646 Washington Brick & Terra Cotta Binswanger
799 9th Street, NW East End 201,462 $631 AEW Blue Capital
1401 H Street, NW East End 345,000 $594 TIAA-CREF George Comfort/Loeb Partners
1776 Eye Street, NW Downtown 212,637 $581 Dweck Properties USAA/Wafra
1275 K Street, NW East End 234,001 $521 Private Offshore The Carlyle Group
1201-1225 New York Avenue, NW East End 413,003 $520 Pembroke Real Estate Falcon Real Estate Company
1015 15th Street, NW East End 185,000 $491 BlackRock TIAA-CREF
1350 Eye Street, NW East End 342,014 $490 Beacon Capital Universal Equities Group
Maryland
Address Location Size (Square Feet) Price per Square Foot Buyer Seller
One Bethesda Center Bethesda 167,000 $416 Brookfi eld Properties Morgan Stanley
700-800 King Farm Road I-270 Rockville 537,000 $361 ACP Pritzker Family, Penrose Group
4733 Bethesda Avenue Bethesda 98,165 $321 JBG Plaza West
401 N. Washington Street I-270 Rockville 248,048 $282 Colony Capital Transwestern
1396 Piccard Drive I-270 Rockville 54,826 $281 Kaiser Foundation Health Plan Triumph Development
6100 Executive Boulevard Rockville Pike 126,241 $279 Stephen A. Goldberg Co. Wilco Construction
1901 Research Boulevard Rockville Pike 109,823 $278 Colony Realty Partners Goldstar Group
7200 Wisconsin Avenue Bethesda 260,081 $268 Ross Development Artery Group
101 Orchard Ridge Drive I-270 Gaithersburg 103,685 $265 Columbia Equity Trust Foulger Land
6000 Executive Boulevard Rockville Pike 124,000 $229 Guardian Realty Cohen Companies
Virginia
Address Location Size (Square Feet) Price per Square Foot Buyer Seller
4350 N. Fairfax Drive Ballston 196,242 $434 TIAA-CREF Miller Global Properties
4201 Wilson Boulevard Ballston 555,925 $420 Dweck Properties CarrAmerica
1725 Duke Street Alexandria 148,473 $415 Miller Global Properties Morgan Stanley
601-701 South 12th Street Pentagon City 554,000 $414 Brookfi eld Properties Commercial Net Lease
Sequoia Plaza Clarendon 277,000 $406 Foulger-Pratt USAA/Wafra
11800 Sunrise Valley Drive Reston 204,003 $390 Boston Properties Westfield Realty
1919 South Eads Street Crystal City 98,750 $389 The Consumer Electric Assoc. Vornado Realty Trust
3110 Fairview Park Drive Merrifield 252,776 $381 Hawaii-based LLC Hart Realty Advisors
2251 Corporate Park Drive Herndon 158,016 $373 ACP
1005 N. Glebe Road Ballston 146,819 $367 TA Associates TIAA-CREF

SOURCES: CoStar Group, Jones Lang LaSalle, Delta Associates


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