There are some obvious and not-so-obvious reasons for this. Government spending falls in the former camp, Levy said. At face value this is good for the region; however, as the panelist discussed next year's presidential elections it became clear many expected that no matter which party wins the White House and Congress, fiscal restraint will be at the forefront of any spending plans. Homeland security and the Department of Defense, though, will be an exception, which will benefit Northern Virginia. Also, Mansinne explained, Northern Virginia has become more diversified within the categories of government spending, so it won't feel a budget crunch too much in any one sector.

Other reasons less obvious but equally as important to Northern Virginia's real estate market's health: the growing interest on the part of foreign based investors in its assets. To be sure, the entire US real estate market is one sale now for buyers from Europe and Asia, said Jim Lee, president and CEO of Opus East, thanks to the dollar. Indeed, the day before the conference, Prudential Real Estate Investors revealed that it had acquired Boston Properties' office portfolio in Loudoun County on behalf of investors in Munich-based TMW Pramerica Weltfonds. Northern Virginia, though, with its proximity to the DC market, will have special allure for many investors not interested in familiarizing themselves with second or third tier markets. "Foreign investors tend to gravitate towards trophy, urban assets," Doug Fleit, CEO of America's Capital Partners Mid Atlantic said.