The market maintained stable vacancy rates, but rent growthslowed in the second quarter and demand was "lackluster," accordingto the quarterly study by the brokerage company.

The overall average vacancy rate was unchanged at 3.7%, anddemand was highest for mid-range properties, pushing vacancy ratesdown in the most affordable submarkets. Rent gains were highest inthe low and moderately priced submarkets, with the Compton-Carsonsubmarket posting the highest percentage gain, 8.1%. A total of 139properties were sold in the first six months of 2002, up from 86during the same period in 2001, and the average price per squarefoot rose from $74.81 to $84.13. The average price per unit trendedclimbed from $51,040 to $58,403.

"Year-to-date, the market has shown virtually no change inoccupied units," the Hendricks report says. It credited theregion's diverse economy with keeping conditions stable despite theoverall downturn in economic conditions, saying that the lack ofhigh-profile corporate downsizings and the region's base ofpredominantly small- to medium-sized business has worked in itsfavor.

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