Colliers International's first-quarter vacancy rate survey shows a figure of 7.8% for Downtown, more than double the 3.5% recorded at the end of 2000. "We are looking at a grossly exaggerated market," says Colliers' Jeanette Ferguson. "A year ago, we saw volatile high-tech companies attacking the market, and now that's no longer the case. I don't think we'll see an evening out before the third or fourth quarter of this year."

The amount of sublease space also has nearly doubled since the final quarter of 2000, according to Grubb & Ellis. The company put the sublease level at 1.1 million sf, up from 621,000 sf at the end of last year.

The "Boeing Perception," the idea the Puget Sound region is no longer as attractive given the aircraft giant's decision to move its world headquarters, has not been a factor Downtown, according to Ferguson. "The Boeing move may make people look a little harder," Ferguson says, "but I don't think it has distracted them from coming. We have the larger import-export picture going for us--a closer gateway to Asia than just about anywhere else."