The Department of Justice will be occupying the 589,000-square-foot building, called Two Constitution Square. Also included in phase one is 79,200 square feet of retail space, anchored by a 50,000-square-foot Harris Teeter grocery store and accompanied by recently inked 20,000 square feet of restaurants and other stores for DOJ workers; 440 apartments; a 204-room Hilton Garden Inn; and a second office building with 340,000 square feet.

Developed by affiliates of StonebridgeCarras of Bethesda, MD and Walton Street Capital of Chicago, the final project will be a 2.5-million-square-foot endeavor, covering an entire city block bounded by M Street, N.E., N Street, 1st Street, and the New York Avenue Metrorail Station.

Since the developers won these leases, however, activity in NoMa--as well as the city--has slowed considerably. In July Kaiser Permanente took 200,000 square feet at 700 Second St.--one of the largest leases in the District this year. However this has not offset the rising vacancies that are now troubling the emerging parts of the city, including NoMa. Overall vacancy rates have risen in the DC region, registering at 12.3%. In the District, net absorption was a negative 230,900 square feet, according to Q2 figures by Cassidy & Pinkard Colliers.