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WASHINGTON, DC-Dotcoms account for only 7% of the leasing in institutional quality space in Internet-heavy Northern Virginia, according to a new study by Trammell Crow Co. It’s far less than brokers expected but it’s useful news to investors in the booming market, where credit concerns have made owners warier of high-tech tenants and pushed deposits up to as much as two years’ rent in this market of 120 million sf. “When we got done we were shocked,” said Joseph A. Callanan, director of institutional sales for Dallas-based firm’s Washington office.

The study looked at the 617 tenants using more than 20,000 sf, which account for almost 48 million sf in the market. That’s where Trammell Crow found the small fraction of pure-play Internet content and commerce companies. Another 15% were in computer-related businesses, while the rest were a variety. About 30% are Standard & Poor’s rated companies, 14% are government tenants, 4% are associations (a strong type of tenant in this market), and he remaining 29% are a variety of companies.

“The data says that the market is not some house of cards built on shaky credit,” Callanan said. That’s important in an area where memories of the last real estate recession still sting almost a decade later.Owners can read the data two ways, Callanan said. First, it means that the market is safe for investment. Second, if there are so many other types of tenants out there, owners can hold out for better credit tenants.Callanan became interested in the question after reading an article on how quickly dotcoms were “burning” through their cash. He decided he wanted to inventory the local market and see how big a risk these companies might pose.

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