NY real estate firms buy DC towers

April 04, 2011 11:36AM

A growing number of New York City-based real estate firms are purchasing office buildings in the nation’s capital, according to Crain’s. The vacancy rate in Washington, D.C. is 11.2 percent — besting the national central business district average of 14.4 percent, and approaching Manhattan’s 10.5 percent rate. Meanwhile, leasing activity in Washington jumped 30 percent last year. As a result, Tishman Speyer, the Rockefeller Group, TF Cornerstone and TIAA-CREF have purchased office towers in Washington in recent months, and last month Rockrose Development Corp. spent $43 million for a 180,000-square-foot building at 1150 18th Street N.W. “No matter whether the Democrats or Republicans are in power, the government just keeps growing and growing,” said Justin Elghanayan, vice president at Rockrose. “Plus, like New York, it is a space-constrained market.” [Crain’s]

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