"They are definitely out there," acknowledges one industryprofessional, adding that Meredith & Grew has been retained toassist the firm in securing an agreement. M&G AVP Elias Demakesand colleague John Carroll III are said to be overseeing theassignment for Palomar. Demakes declined to discuss the matter whencontacted by GlobeSt.com, citing client confidentiality, whileefforts to contact Palomar officials were unsuccessful. Palomarproduces devices for use in skin treatment.

Given the silence, it is unclear how expansive the space searchis, or whether Palomar is focusing on pricing or is more concernedabout the quality of the future facility. Some observers, however,say the pursuit seems to be focused on the Route 128 Northwestsubmarket anchored by Burlington. At least one other major medicalsector requirement has been eyeing that region as well of late,with GlobeSt.com last week reporting that Phase Forward hassupposedly considered options in the Burlington and Bedford areasin a search for more than 100,000 sf. Phase Forward is presently inan expiring sublease situation just south of Burlington in the coreWaltham market.

Whatever Palomar's motivation or outlook, the decision-makingprocess might do well to quicken the pace considering theincreasingly snug suburban office market, especially along Route128 NW. Estimated at 20.9 million sf by M&G's SVP Mary Kelly,the real estate firm's research director, Route 128 NW saw itsvacancy rate drop from 21.8% to 20% during the first half of 2007,with just under one million sf of net absorption in that time. Morethan 780,000 sf of that activity occurred in the second quarter.The next closest performer was the Interstate 495 North submarketat 350,000 sf for the quarter.