This marks a 2.9 percentage-point increase from year-end 2001--and the eighth consecutive quarter of vacancy increases that came on the heels of a market that seemed, at the time, to have no ceiling.

Nonetheless, the Office Market Trends report paints 2003 as a year with positive job growth significant enough to make a positive impact on the market. James M. Keating, a Sr. VP with the Bellevue office of Grubb and Ellis says, "While the first quarter statistics maintain the reality of the office space situation, there is nonetheless a sense that activity and the possibility of near term transactions may indicate a change, or at least a flattening of trends by the end of the year."

But, before peering far enough into the future to spy the light at the end of the tunnel, one must wade through the statistics on today's market. While the report says the transaction velocity is increasing, it admits that the current level of leasing activity remains insufficient to keep pace with corporate give-backs. Grubb & Ellis counts more than one million sf of negative, net absorption during the first quarter resulting from failing and consolidating businesses.