Why Vornado Realty is weighing spinoff of Washington office portfolio

More than a decade after acquiring the Charles E. Smith Co., Vornado Realty Trust is considering spinning off its Washington area real estate portfolio.

Vornado CEO Steven Roth disclosed the prospect in the real estate investment trust’s annual letter to shareholders. In it, he presented a good-news/bad-news outlook. He noted the region’s office market has been struggling with elevated vacancy rates, but it is also battling back with a number of new deals in places including hard-hit Crystal City.…