He said the market problems in the area, and nationwide, will not recoveruntil corporations build up cash reserves, stock prices recover andcompanies feel in a better position to take on the risk of expansion.

He said tenants seeking short-term leases at bargain basement prices areslowly absorbing sublease space, with Troy having the most sublease spaceavailable, at 605,405-sf.

Vacancy rates continued rising, he said, topping out at 16.1% fromthird quarter's 15.76%, but that figure includes the completion ofOakland Town Square phase II, which delivered almost 200,000-sf of newvacant space into Southfield.

Only 18,700-sf of space was absorbed in fourth quarter 2002, Fenster said.For the year, the market had negative absorption of 547,275-sf, though thatwas half of the negative absorption in 2001.

There were few office complex sales, which included the LNR Property Corp.of Miami buying the Penobscot and First National buildings in DowntownDetroit, and Larson Realty Group and DRA Advisors Inc. purchased the270,000-sf Onyx Office Plaza on Telegraph Road Southfield from NorthwesternMutual Life Insurance Co. for $28.5 million.

DTE Energy seeks to sell the 716,000-sf Guardian Building for $13.5 million,and Kojaian is building the 325,000-sf Farmington Hills Corporate Center IIat Twelve Mile and Halstead roads this year, said Fenster.

Also, Pricewaterhouse/Coopers will relocate from the Renaissance Center to anew 100,000-sf building to be built near Ford Field, on land owned by theDetroit/Wayne County Stadium Authority, and Domino Farms hired the DemattiaGroup to build a 250,000-sf epxansion in Ann Arbor, Fenster said.

Finally, rental rates did not change in the fourth quarter, Fenster said.The year-end average asking price for class A property stood at $25.05 inthe suburbs and $23.64 in the city of Detroit, he said.