Still the overall vacancy rate had ended at 5.7%, which is a market at equilibrium, the report notes. A total of 1.7 million sf had been added in 2000, breaking the previous record of 1.6 million sf set in 1985 - right before the market crashed. Construction already has started out strong this year, with 1.4 million sf either under way or in the final stages of planning.

For example, Federal Express has begun a 312,000-sf expansion, the 276,000-sf Plaza of the Rockies-South Tower is under way in the CBD and a 149,000-sf headquarters is being built at Compassion International Airport.

"It is highly probable that 2 million sf of new office space will be constructed during 2001," the report says. "Investors and developers are now willing to meet ever-increasing demand - demand that removed over 80% of the new construction by the end of 2000."Another record is the 1.3 million sf that has been absorbed, surprising even Grubb & Ellis. "The market surpassed our projections by 300,000 sf. Our forecast for 2001 is another record absorption year of 1.6 million sf."