But Downtown faces an embarrassing lack of new construction and a growing demand for space, the brokerage's report states.

On the hotel side, however, the 966-room Adams Mark property on the waterfront is nearing completion at an estimated hard construction cost of $120 million.

"The finished product will be a significant asset to Downtown" and could trigger new office construction, Montgomery says. So could the new Federal courthouse being completed. "Activity begets activity and the more buildings constructed, the more viable the area becomes," the broker says.

The suburbs, however, show a different picture. A total 695,000 sf of office product is currently under construction with an additional 470,000 sf of planned class A waiting to break ground within the next 12 months.

"Even though a significant block of this space will be preleased prior to completion, especially Koger's Collier Building, we expect vacancy rates to begin trending upward through the first quarter of 2001," Montgomery tells GlobeSt.com.

The result will be tenants "benefiting from greater supply and flatter lease rates," the broker says.

In the industrial category, Montgomery attributes the low 5.1% vacancy factor to "the area's skilled labor base; its position as a major port; and its excellent access to highways and railroads."

Rents are $3.25 per sf triple net in the overall industrial market. Research and development flex space is at $7.50 per sf triple net.