Vacancy rates in the northwest submarket are rising andlikely to hit 14.2% at year-end, up from 13.3%at mid-year. That rate goes to 15.7% if all of the sublease space is considered, the report notes.

The absorption was a negative 17,887 sf for the year despite no significant newdevelopment coming online. Even so,rental rates have stayed steady across all propertyclasses, according to the report.

Office space users continue to flock to the boomingMaple Grove area, as tenants follow the samepath previously taken by retail and residentialdevelopers. Stronger demand in the Maple Grove areawill help keep vacancy rates fairly steady across thesubmarket the first half of next year, the report predicts.