Vacant space for retailers increased over the year by 955,853 sf to a total of 9,610,153 sf for the region. According to the report, changes in market conditions between the first quarter of 1999 and the first quarter of 2000 are responsible for this shift.

"Bearing in mind the strength of the economy, these numbers are surprising," says Ross J. Moore, vice president/national director at Colliers International. "I don't think there's anything to indicate that retail construction should stall. Demand in this area is very healthy."

Bill Beckeman, a partner at Finard points out that over the past year there were significant retail chain failures and other store closings, which, says Beckeman, "accounts for nearly all the vacany rates." Notable among the retail chains that closed were Caldors Department Stores. Other retailers that closed stores in the region over the past year include Filene's Basement, Discovery Zone and Home Quarters Warehouse. However, over four million sf of vacant space, or almost half of last year's vacancy, was re-tenanted by new retailers during the year.