"Many companies put real estate decisions on hold while monitoring the direction of the economy," the report says. "Other companies returned space to the market, bringing the total sublease space to over four million sf in the metro area."

Overall vacancy rate rose to 18% from 14.6% at the end of the second quarter. The hardest hit, the northwest corridor, is shouldering a 34.7% vacancy rate. The average rent, however, only dropped slightly to $20.92 per sf from $21.92 per sf.

Developers increasingly are offering concessions such as free rent, free furniture and phone systems and flexible lease terms, but few companies are taking advantage of the breaks, Studley reports. "Tenants that are ready to relocate or renew can now find enticing opportunities," the report says.