Historically, the researcher says, economic downturns have amuch greater impact on larger assets as businesses scale back inthe face of falling consumer demand, and the current period is noexception. She notes the availability rate for assets larger than350,000 sf slowly began climbing in Q2 2007, rising to rise to anear record 12.7%. By comparison, she continues, mid-sizedbuildings have experienced continued declines in availability,while availability levels for small assets under 100,000 sf haveremained stable.

According to Stone Mortimer, the difference is just becomingapparent but will widen over time. As she points out, the majorityof new completions in the past few years has involved largebuildings, and the number of such completions continues to riseeven as demand for this type of space has flattened. Furthermore,she adds, some 70% of new buildings at the larger end are leasedrather than corporate owned, with the overall availabilitycurrently at about 17%.