When completed next year, the $25-million Gateway Center will offer the only class A office space in the village, with the closest competition coming from Arlington Heights and Schaumburg, further away in terms of time because of increased traffic congestion. And while U.S. Equities Realty reports the northwest suburban office vacancy rate has climbed to 18.4% for class A space, the project's $16 per sf net rates are at the lower end of the spectrum.

Even renewed corporate downsizing and layoffs are seen as providing potential tenants. Workers forced to trade in Metra monthly passes for severance packages may opt to set up shop close to home, Scardino suggests. "There are a lot of people who think the economy will come back even stronger than it was before Sept. 11," he adds.

The Gateway Center on the northeast side of the Union Pacific tracks along with the accompanying Groves of Palatine condominium and townhome project began in earnest 13 months ago during a breakfast meeting, recalls Village President Rita Mullins. Besides seeing other suburbs jumping on the Downtown redevelopment train, Palatine was looking to improve its well-worn train depot, but more importantly, sought to eliminate a dilapidated and largely vacant Commuters Plaza shopping center behind it.

The village bought the land and is using tax increment financing. Six months after trustees approved the project, the village is banking on the development team of Freed, Alter and Walsh Construction to turn its former "pig's ear into a silk purse," Mullins says, adding, "The key to this development was to select the right partner."

Quadrini and Robert Fink of Freed & Associates use "active" and "significant" to describe interest in the space. "We're still in the early stages of development," Fink says. "It's a little early to name names."