"Boeing has a legit backorder of planes that need to be replaced because they're getting old. It's unavoidable," Newton tells GlobeSt.com, explaining, "The reason they're not selling today is because airlines don't have the cash."

Just how much might rates drop over the next 18 months? "By two or three points, if I had to guess," says Newton, remarking that occupancies have been quite high by industry standards. In a Paragon report released yesterday, citing research by Dupre+Scott, vacancies in Central Everett averaged 3.5% over the last 5 years, with South Everett penciling out at 5.05% during the same period. The most recent study gauges Fall 2001 vacancies in these markets at 5.5% and 6.45% respectively.

One question that remains is whether absorption will be strong enough through the next six quarters to handle inventory increases brought of new construction. Underlying that is the uncertainty of and what portion of developments currently proposed for Everett will be moved forward, delayed or dropped entirely.