The roughly half-million-sf, 10-story building had appropriated between 140,000 sf to 150,000 sf to retail, explains Eric Rubin, principal of Madison Retail Group, which brokered the transactions. There is about 28,000 sf of retail space left; the rest of the building is fully leased to office occupants.

Zara, an international retailer, will occupy 13,000 sf. Zara was represented by Jeffrey Paisner of New York-based Lansco with Madison Retail Group. West Elm, a furniture and home goods store, has signed a lease for 40,000 sf through Madison Retail Group on behalf of its owner, Williams-Sonoma Inc.

Madame Tussauds, which will open this October, will occupy 30,000 sf. Washington, DC is the latest city to host the famous wax museum. Other locations include London, Hong Kong, New York City, Las Vegas, Shanghai and Amsterdam. The Tussaud Group, owner of Madame Tussauds and other wolrd-wide attractions, was acquired this week by New York City-based the Blackstone Group for $1.93 billion, as reported by GlobeSt.com. According to a source, the acquisition will not affect the museum's opening. Madison Retail Group represented Madame Tussauds with Los Angeles's Howard Samuels.

"We have a great cluster of retail in this one building," says Norman Jemal, vice president of Douglas Development, which redeveloped 1025 F St. "Last year H&M took a retail location in the building and has since done very well." The firm is in negotiations with several retailer about the additional 28,000sf of available space, he tells GlobeSt.com.

Jemal says that a trend towards including more retail in downtown office space is gaining momentum. "Retail has become economically viable to developers. You are starting to see this in earnest on F St. with developers enhancing the value of office by also bringing in great retail."

For example, Douglas Development recently delivered 950 F St. It is leased to office tenants but the developer is holding 25,000 sf of space for retail. "We have just begun another building as well on 1199 F St. that will be office and retail as well," he says.

Rubin tells GlobeSt.com that the asking rate for retail downtown ranges from the mid $40s per sf up to $100 per sf. "Banks are paying the highest rents because it can be difficult to get a corner spot. Food and restaurant providers are paying $50 per sf and up, and soft-good retailers are paying between the mid 40s to $70 per sf."