The roughly half-million-sf, 10-story building had appropriatedbetween 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 thebuilding is fully leased to office occupants.

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

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Madame Tussauds, which will open this October, will occupy30,000 sf. Washington, DC is the latest city to host the famous waxmuseum. Other locations include London, Hong Kong, New York City,Las Vegas, Shanghai and Amsterdam. The Tussaud Group, owner ofMadame Tussauds and other wolrd-wide attractions, was acquired thisweek by New York City-based the Blackstone Group for $1.93 billion,as reported by GlobeSt.com. According to a source, the acquisition willnot affect the museum's opening. Madison Retail Group representedMadame Tussauds with Los Angeles's Howard Samuels.

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

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Jemal says that a trend towards including more retail indowntown office space is gaining momentum. "Retail has becomeeconomically viable to developers. You are starting to see this inearnest on F St. with developers enhancing the value of office byalso bringing in great retail."

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

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

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