The office market did show a reduction in negative absorption, falling to 267,090 sf, compared with 662,628 sf during the same period in 2002, a 59.6% improvement.
The industrial market fared even better, with its negative absorption falling to 96,465 sf from 480,064 sf, a 79.9% improvement.
Class A office lease rates fell by 10.8% to $19.76 per sf, compared with $22.16 a year earlier. Class B space showed the same trend, falling to $16.47 per sf from $18.38, a 10.39% drop.
The industrial market shows more stable lease rates, although they're also falling. The average research and development/flex space fell about 5% to $8.64 per sf from $9.18 per sf, while the overall industrial average lease rate fell to $5.27 per sf, from $5.49 per sf.
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