Nicholas R. Smith, First Potomac's chief investment officer,likes the valuations properties in this submarket offer. "We havebeen closely monitoring the increasing rental rates in the I-270Corridor," he said in a statement. "The market has improveddramatically and has tightened in recent months. We know thetenants in this market very well and expect that controlling alarge share of the available space will enable us to lease thevacant space quickly at attractive rents."

It comes as little surprise to anyone watching the company thatFirst Potomac is still in acquisition mode. During Q2 First Potomaccompleted two acquisitions, worth $36.1 million. It also said itexpected to close on four properties aggregating approximately $72million during Q3, subject to final due diligence.

The company appears poised to ramp up its acquisitions beyondthese deals, however. In recent weeks it has raised $90.2 millionin public share offerings. It has also paid off a $125 million lineof credit with some of the proceeds, giving it amply capital tocontinue to build, especially as it has the ability to increase theline to $225 million under certain circumstances. "We expect to seeat least $130 million [in acquisitions] for the remainder of theyear," Charles Place, an analyst with Ferris, Baker Watts, Inc.tells GlobeSt.com.