Overall net absorption totaled 651,014 sf, with SouthPark absorbing the most at 218,597 sf. The average rental rate increased from $20.06 psf in first quarter 1999 to $20.86 psf in first quarter 2000.

Development activity was approximately 2.9 million sf at the end of first quarter with 49% of the space pre-leased. Construction was down in the overall industrial market from 1.3 million sf in fourth quarter 1999 to approximately 690,625 sf in first quarter 2000.

The multifamily market has also been active. Nearly 5,000 units are projected to be delivered this year, but absorption appears to be keeping pace. The Southeast and the Northeast, two high-rent suburban markets are experiencing a lot of the growth, as rental rates continue to rise. The average monthly rent has increased from $658 to $688 during the past 12 months.

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