The downtown posted 80,000 sf of net absorption, accounting formore than 90% of the activity in class B and C buildings in thethird quarter, according to the report. "Much of this activity isdue to the culture downtown, offering workers access to transit,amenities and public spaces," concludes the report. "Thesecompanies will endure the higher cost of taxes and parking to stayin the central city so that they may retain their most criticalasset – their human capital."

Meanwhile, very few large blocks of space are available in thehigh-tech haven located west of Portland, and vacancy rates remainbelow 7%, according to a third quarter report from Grubb &Ellis. Despite negative net absorption, activity remains strong,with significant amounts of square footage leased prior tocompletion.

Intel has leased two buildings yet to be completed at AmberGlen,and at Suntek Corporate Park Merant committed to a 60,000-sfbuild-to-suit and while Sun Microsystems is building a 90,000-sffacility. The early activity has speculative projects racing to bethe first to market to suck up the demand. PS Business Parks is inthe ground for Greystone Two and Three at Woodside, and Insigniahas broken ground on two additional speculative buildings atSuntek. Cornell West is nearing completion, however, and should bethe first to market early next year with more than 120,000 sf ofclass A product.