He estimates the Central Business District's office vacancy rateat 13%, the southeast suburban's office vacancy rate at 22% to 23%,and northwest corridor's vacancy rate at 35% to 40%. And another750,000 sf to 850,000 sf of sublease space will hit the market bythe end of the first quarter of 2002, he predicts.
Pavlakovich estimates only 350,000 sf to 400,000 sf of thesublease space hasbeen leased. Yet, a closer examination revealsthat the sublease space is not as dire as it has been in otherdownturns, he says.
"The big difference in earlier downturns is that the subleasespace had five to 12 years left on its term," he says. "Now, we'redealing with sublease space for two to three years at themost."
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