"I think we're just gliding along," Gould tells GlobeSt.com. "We're seeing activity, but we're not seeing the job growth we need for expansion and absorption."

Joseph P Flaherty, senior VP at Meredith & Grew, was only slightly more optimistic. "I think [the market] is showing some signs of activity, but vacancies are still pretty high. There's some activity, but it's still not robust. We really need to see a rebound in the technology sector."

The market demise dates back to the downturn of the economy when the dotcoms began failing, according to Darryl Morse, principal at the Codman Co. "We went from a 0% vacancy rate to a 20% rate in just three months, when the dotcom bubble burst."

Since that time, rents have fallen steadily, from an average asking rate of $54.41 at the end of 2000, to $31.29 at 2002 year end, and to $24.84 at the close of 2004, according to a report released to GlobeSt.com. by Meredith and Grew. The report shows a 21.5% vacancy rate for the office market and a 13.9% rate for the biotech market, both improvements over the 22.8% and 17.5% respectively, at the close of 2003.

The market does appear to be showing signs of stabilization, however. Despite absorption of only 73,000 sf in the fourth quarter, overall absorption for the year was a strong 929,000 sf, a large amount of it due to Novartis' move into 500,000 sf at 254 Mass. Ave in the second quarter. And as 2005 opens, the news is not all bad and there is activity afoot.

St. Elizabeth's hospital has been in talks with 640 Memorial Dr. for 80,000 sf to 100,000 sf, depending on whom you speak to, either as a direct lease with MIT or a sublease with Millennium Pharmaceuticals. The negotiations may be breaking down, however, as the talks were first said to be on hold, then reports of another RFP were confirmed by sources. "We'd love to have St. E's in our portfolio in the future,' MIT's John McQuade tells GlobeSt.com. "But beyond that, we have no deal with them." M & G's Jim Elcock issued a 'no comment' when asked about the status of the negotiations, but a representative of the firm confirmed that they were representing them.

More biotech space will soon be filled at One Hampshire St. by Schlumberger Dell Research. Schlumberger will take 190,000 sf from Draper Labs, 70,000 sf at the existing 170,000-sf building, and an additional 120,000 sf at in a to-be-constructed 175,000-sf addition, according to M & G's report. The transaction will either be a lease or a sale, with one source stating that it will be a sale. Cushman & Wakefield is representing One Hampshire St.

Another C&W deal in the market has been struck, as the Culinary Institute has signed a letter of intent for approximately 60,000 sf with 215 First St. for a school. The deal was confirmed by one source, but Mark Winters of Cushman, who is representing 215 First, did not return phone calls by deadline.

M&G's Flaherty also reports that they are tracking deals for 22 tenants with possible requirements totaling 450,000 sf, and adds "there's a tenant looking 100,000, another at 50,000, a few in the 30,000 range, and a bunch in the 20's." NAI Hunneman executive VP Greg Larsen says that he will be closing "on a few deals in the 20's" as well.

Even if there is some optimism with the aforementioned deals, Cambridge will be losing some tenants to the equally depressed Boston market. David O. Babson will be vacating 50,000 sf at One Memorial Dr. for 85,000 sf at 478 Atlantic Ave., and Carter Burgess will trade its 35,000 sf Maple Leaf Building address for 31,000 sf at 465 Medford St. in Charlestown, according to S & S's Gould.

"We're seeing some inflow, but we're seeing some outflow as well," she says. "It's a little bit of a wash."