In a new report, Robert Bach, Chicago-based chief economist forSanta Ana-based Grubb & Ellis, says "there are key differencesbetween current conditions and those of the previous marketcontraction in 2001 and 2002." He points out that the US officemarket posted 24.5 million sf of positive absorption from thirdquarter 2007 until June 30, 2008, in comparison to 38.9 million sfof negative absorption in the contraction of 2001 and 2002. Overallclass A asking rents have also continued to increase, up 7%,compared to a decline of 6.3% during the previous cycle.

Bach's report shows growing sublease space in the suburbanmarkets of South Florida, Atlanta, Austin, and Central and NorthernNew Jersey. Although Atlanta "has mirrored the national market withan increase in sublease supply of suburban class A properties,"Bach finds, adding rapid growth in medical and life sciencesindustries "has served to keep the market in positive absorptionterritory as of midyear."

Chicago thus far has countered the national trend towardsuburban sublease space, with the majority of its increase insublease focused in the city's CBD. Despite the recent jump to 6.4million sf of available space, the market is far below the 12.6million sf available during the downturn of 2001-2002.