Studley, a tenant rep firm, paints a cloudy picture, with EVPSteve Barker calling market performance "lackluster" and accusinglandlords of a "steadfast commitment to unrealistic asking rents."Grubb & Ellis, a more landlord focused brokerage firm, says theslowdown is relative to an overheated market and that the changesare merely a shift toward a more sustainable growth pattern.

Studley's Barker says tenants are adopting a 'wait and see'attitude in the wake of the credit crisis, opting to executeshort-term transactions "with the expectation that asking rentswill drop over the next six to nine months." G&E acknowledgesthat tenants may be more conservative with their space commitmentsin 2008 but predicts that rent and occupancy gains willcontinue.

As for new construction deliveries, including renovations andconversions, Studley says they may create some "downward pressureon asking rents." Grubb & Ellis says "strong demand shouldcounterbalance the adverse effect of new and renovated constructiondeliveries" and "supply should continue to tighten," but did temperits prediction.