The Central Business District's third-quarter vacancy rate of15.8% was down from 17% at mid-year and more than 20% in the thirdquarter of 2000, according to the C&W report. Net absorptionhit 300,000 sf. "I have never seen the Downtown market asfundamentally strong as it is now," sums up John Eichler, directorof real estate services for Cushman & Wakefield's LAoffice.

Some other big Southland office markets suffered. C&Wreports that the vacancy factor on the tech-heavy Westside jumpedto 13.1% in the third quarter from 10.7%, as many dot-coms andother technology companies continued to give up space. Compoundingproblems, the report says, is that another 2 million sf of Westsidespace is under construction—compared to virtually zero inDowntown.

Failing technology tenants and new office projects pushed thevacancy rate higher in neighboring Orange County too, C&W says.Its third-quarter vacancy factor was 16.9%, up a full twopercentage points from the previous three months.

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