"Most NAI members are reporting growing confidence in the beginnings of a recovery in mid to late 2003," according to the new report. That assessment is tempered, however, with a consensus of "some markets up and some down, slightly, but no definitive movement in either direction."

At issue, of course, is the general economy, which NAI assesses as one of "mixed signals. No real recovery, but a slow steady inflation-free economy with signs of growth and signs of weakness hitting the news and markets in equal measure." One key link between the economy and real estate has been the series of debacles involving Enron, WorldCom and Adelphia, as well as "the implosion of Arthur Andersen," all of which threw big blocks of space onto various regional markets.

By the numbers, according to NAI, downtown class A office space jumped more than $2 a foot from 2001 to 2002, even as the vacancy rate rose by close to three points to 11.66%. Suburban class A office space, meanwhile, dropped more than $1.70 per sf to an average of $24.07, as vacancies shot up some four-and-a-half points to 16.21%.

On the industrial side, warehouse space nationally averaged about a half a dollar a foot less in 2002, coming in at $4.10 per sf, while vacancies rose by just over a point to 10.2%. Manufacturing space rents were off slightly to $4.64 per sf on average, while vacancies continued to hover around the 9% mark. And R&D/flex space dropped a full $2 a foot to $9.36, with the vacancy rates rising almost two points to just under 12%.

Among the various retail categories, downtown product showed the greatest volatility, with average rents dropping by more than $4 a foot to an average of $42.21. Vacancies rose two points to the 10% level. Strongest performing retail category were the regional malls, where rents jumped by more than $3 a foot to $41.34 and vacancies actually dropped by more than a point to 7.24%.

By market, New York "continues to lead the nation in highest high and average rents for office properties, with premium space still above $110 per sf per year and average office rents exceeding $60 per sf per year," according to the report. Among the bleakest markets: San Francisco and Chicago (especially the suburbs). Los Angeles' CBD bucked the national trends, however, with falling vacancy rates despite space being added to the market, according to NAI.

Internationally, NAI's report refers to Canada as "another year, another boringly positive report." But given the global economic and political environment, including such "wild cards" as oil prices and war in the Middle East, "boring is good."

In Asia, meanwhile, China is the star performer. "As Asian and global manufacturers seek to build the lowest possible cost structures to maintain global price competitiveness, China emerges as one of the leading choices in the world and the leading choice in Asia."

In Europe, finally, "2002 has been turbulent in the underlying financial markets." For real estate in particular, absorption was way down last year, with Munich, Dusseldorf and Berlin all hard hit. The first quarter 2002 optimism in the UK, meanwhile, fell off and "business confidence remains fragile." The report paints a similar picture in France, and in other key cities around the Continent.