Number crunchers at Colliers International report 288,742 sf ofnet absorption, a 30 basis point drop in the vacancy rate to 12.9%,and big spikes in effective rents. The average class A effectiverent in the North Financial District shot up 13.4% to $38.35 andclass B effective rents jumped by 8% to $26.85.

Cushman & Wakefield's first quarter report on the marketputs net absorption at closer to 350,000 sf, producing a 100 basispoint drop in the CBD class A overall vacancy rate to 13.8%. Theoverall office vacancy rate fell 120 basis points to 14.8%,according to the report. One year ago, the overall vacancy ratestood at 18%. In the South of Market district, vacancy hit afive-year low of 19.9%.

The current CBD class A asking rent of $38.16 per sf is up 4.6%from the fourth quarter of 2005 and up 22.3% from the first quarterof 2005. "Tenants who delayed their real estate decisions are nowpaying the price as the landscape has changed in just one year'stime," states the report. View space remains in high demand andcontinues to command top dollar, with two recent upper-floor lawfirm renewals being inked in the mid $50s per sf.