WASHINGTON, DC-Jones Lang LaSalle recently reported encouragingstatistics for the DC area. For the first time since the secondquarter of 2008, all three jurisdictions of the greatermetropolitan area recorded positive net absorption. The uptick indemand coincided with ever-dwindling developmentpipeline--tightening vacancy rates by about 40 basis points duringthe latest quarter.

The emerging markets of the District--Southeast and NoMA--areperhaps benefiting the most from this, Scott Homa, researchdirector for JLL, tells GlobeSt.com. "It's definitely a landlord'smarket in Southeast right now, and the balance of power is quicklyshifting in that direction in NoMa. Large blocks of space are beingleased at a rapid pace in both markets." Tenants are continuing tofind small blocks available, he continues, but the leasingenvironment is getting much more competitive in those areas.

The government--largely federal but also the District--is thedriver behind this growth, of course, with the most recentillustration provided by the US Customs and Border Protectionagency last week. It is occupying 85,000 square feet at 90 K St.,NE in a 10-year lease--or 21% of the building, owned by a jointventure between Trammell Crow, Crow Holdings and CottonwoodPartners.