Sylantro Systems, a California-based telecommunications company, is taking the largest spot, leasing 2,329 sf in a three-year pact. Sylantro will be joining the tenant roster at Deer Valley Financial Center, located at 22601 N. 19th Ave. in the city's northern corridor. The building is less than a half mile east of Interstate 17 and a little more than a mile north of Loop 101, which will open fully later this year. Sylantro plans to use the space for marketing and development.

Caitlin Construction, a highway construction firm, has leased 2,000 sf at 113 W. Hoover Ave. The firm plans to use the space for administrative offices. And, T-Squared Interactive, a Phoenix-based software development company, is taking 1,336 sf in the North Sixteenth Street Financial Center, a 63,000-sf, multi-tenant office building at 7250 N. 16th St. in Phoenix. The signing represents an expansion for the business.

The overall vacancy rate for office space in the Valley has been on the rise since hitting a low in late 1998. The current vacancy rate is about 14.5% in comparison to 8.8% in the third quarter 1998. The average asking rent is $21.09 per sf.

The Phoenix office of DAUM Commercial Real Estate Services has negotiated the pacts. The firm's broker Sarge Glenn has acted on Caitlin's behalf; Laura Becker has represented T-Squared; and Mark Crismon, Sylantro.