According to AFIRE officials, the association's members collectively have nearly $45 billion invested in US real estate. New York and San Francisco are the investment front-runners while Boston and DC respectably hold their own in third and fourth places. In last year's survey, the District came in third of five -- New York; Washington, DC; San Francisco; Boston, and Chicago.

"We are frankly surprised by the results of this year's survey," Karin Shewer of Real Estate Capital Partners responded in a written statement. "Washington has been adding relatively little new space to the market resulting in a strong rental rate growth and controlled availabilities. Properties under construction are more than 60% pre-leased, availability rates continue at historic lows, and effective rents in both new and existing buildings continue to rise. I really believe that Washington's 'slip' in favor of San Francisco reflects the perception that the Washington market is 'soft' because, unlike San Francisco, it is not regarded as a high-technology city."