First-quarter vacancies among the 114 monitored propertiesdropped 3.57% to 12.22% and net absorption rose to 484,168 sf, upfrom 176,000 sf in first quarter 2003.

"The strong first quarter follows a year in which net absorptionwas a negative 85,035 sf (at year end 2003) and confirms manybrokers' opinions that the market is now beginning to turn around,"says Greg Rebman, a senior vice president at Rebman Properties.Last year's negative net absorption performance was the first sinceRebman began monitoring the industry 13 years ago.

"Although the leasing market would still not be characterized asactive, several large leases filled vacancies in some of the largerspaces, which have been keeping the vacancy rate high," he adds.The current 12.22% vacancy level compares with 15.8% in fourthquarter 2003; 15.17% in 2002; 14.12% in 2001 and 14.5% in 2000.