It's a good time to be a real estate owner in the DC area. The Capital area has been growing so quickly for so long that the real estate market is red hot.
Even the spot in question in the article was in a bad neighborhood not too long ago. Since the MCI center opened, however, the neighborhood is getting much nicer.
It is an interesting question though: is there a bubble in the DC real estate market right now? If so, when will it pop?
My take: yes, there's a bit of a bubble, but I don't think it will pop. I think the real estate appreciation is reasonable considering the likely continued growth of the area. There's also the substantial immigrant communities in DC which are likely to continue their rapid growth -- particularly the Latino communities. Interestingly, last year the candidates for president of a Latin American country (Salvador?) both came to the DC area to campaign.