Still, though, compared to 2009, the DC market clearly has yet to make its comeback: in Q1 it posted a negative absorption rate of 179,000 square feet, compared to a positive 630,000 square feet in the same quarter of 2009, according to Delta Associates. The overall vacancy rate--the fourth lowest in the nation--was 13.2%, up from 11.4% a year ago.

The private sector has been active, of course. To name one example,Wiley Rein renewed 335,240 square feet in 1776 K St. and 1750 K St.; the transaction is the largest in DC to date for 2010. However, suchdeals have not done much to nudge the needle overall, says ScottHoma, research director for JLL. "Renewals preserve occupancy butdon't move markets," he tells GlobeSt.com.

Jones Lang LaSalle's initial figures for the first quarter of 2010show approximately 500,000 square feet of positive net absorption, hesays. "However this growth was fueled primarily by the federalgovernment, not the private sector, which continues to demonstrate apropensity for in-place renewals. While law firms and other privatesector tenants are electing to maintain or reduce their space needs,government tenants continue to aggressively expand in the market,"according to Homa.

Indeed gains in federal employment are offsetting to a great degreethe contraction of private sector jobs in the DC area, according toJLL. The local economy posted a 12-month net loss of29,200 jobs; the government, by contrast, added 9,600 jobs to itspayroll. More to the point, there is over 5 million square feet offederal demand is queued in the pipeline, says Homa, "which mayexceed the growth of all other markets across the country combined in2010."