Availability dropped from 8.9% to 8%
within the last twelve months, and asking
rents responded with an increase of 13.6%.
Tenants absorbed over 1.5 million sq. ft. of
space during 2007, with a substantial portion
of this occurring in both class “B” buildings
and the “Brick & Beam” markets. The total
availability, which includes both direct and
sublet space for class “A” buildings remained
above 10%. This is due in large part to the
significant amount of sublet space in class
“A” buildings, which adds 2.9% to the total
availability.

The outlook for 2008 includes rents
continuing to climb, as supply remains tight.
This dynamic will begin to change as the
4.3 million sq. ft. of new supply is delivered,
beginning in 2009 and continuing into 2010.