That was then. Now the Washington, DC area has racked up enough officetrades for brokers and investors to understand the post recessiontrajectory here. The latest deal: AEW's purchase of Three BallstonPlaza for $121.25 million, as reported in the Washington BusinessJournal, is just yet another data point.

For core transactions in the DC area there has been a 125 basis pointreduction in the past 15 months, says Bill Prutting Jr. of CBRE.Buildings that would have traded at an 8.25 cap last summerare now trading at a 7 cap. "That yield compression is due to threefactors," he tells GlobeSt.com. "A continued dearth ofquality offerings, the ability to quantify key underwritingassumptions such as rental rates and absorption rates and a moreacutely defined return requirement on the part of investors. Investorsnow have a good handle on what they are prepared to pay and deals thatdon't match their criteria they are quick to dismiss."

Prutting points to last summer's trade of the Hartford building at 3101 Wilson Blvd. in Rosslyn toillustrate his point. It traded for $350 per square foot and a 8.5%cap rate. Then in October, 4501 N. Fairfax--almost across the streetfrom Three Ballston--traded at an 8.1% cap rate, posting a 40 basispoint compression, he continues. "Now we are pricing at a 7% cap rate for Three Ballston, at $394 per square foot."