"Our role has been slowly changing," said Tony Miltenberger of Colliers International who focuses on the Kent Valley southeast of Seattle. "We have gone from representing tenants looking for space to representing tenants trying to sublease space."

According to a recent survey by CB Richard Ellis, the industrial market is definitely catching its breath from a two-year run of big-time demand. The vacancy rate for the region rose to 4.46%, compared to 3.04% the last quarter of 2000.

"I really thought the vacancy rate would come in at a larger number than it did," said Jeff Veraldo, CBRE's information management coordinator. "It came in at 4.46% but I was expecting more like 5.5% or 6%. There are a lot of larger spaces out there right now, so I don't see the vacancy rates really dipping any time soon."

The Kent Valley experienced the biggest jump in vacancy, up 2.5% to 4.06%. "Six months ago, if you had a tenant looking for 100,000 sf, it would not take you very long to show them what was on the market," Miltenberger said. "Now, there's just a ton of stuff you could show them. The really tight market continues to be for those clients who are looking for 15,000 sf and less."

According to CBRE figures, the Tacoma/Fife submarket vacancy rate increased slightly from 8.21% to 8.79%. The Eastside jumped from 3.88% last quarter to 5.35% this quarter. The Seattle close-in market remained stable, inching up a .25% to 3.06%.

The resurgence of sublease and vacant space has decreased the total amount of industrial space absorbed for the first quarter, down sharply from last quarter. The region tallied 151,661 sf of positive absorption during the first quarter of 2001. For the first time in years, the Kent Valley saw negative absorption at 123,653 sf. However, Tacoma/Fife market once again showed a positive absorption rate, 656,653 sf.

"Fife remains an attractive place because of it's easy access to the freeway," said Colliers' Scott Alan. "It's an older market and commands a little higher rent but it continues to be strong. It's also close to the Port of Tacoma and the Tacoma downtown."

On the Eastside, absorption dropped to a negative 607,828 sf this quarter. The increase on the Eastside can be attributed to a substantial amount of space given back with no new inventory coming to the market. Seattle close-in dropped to a positive 183,652 sf absorbed, down from 613,922 sf last quarter.

"When you go out knocking on doors, people are a lot more receptive,'' Miltenberger said. "They will say 'what are they getting next door' and more phone calls are returned. It's not as tight as it was. Landlords are a little nicer . . ."