Vacancies are averaging 8.4%, down from 8.9% in 3Q 2002 and 9.2% in 1Q and 2Q 2002. Total net absorption for last year, however, was a negative 702,723 sf; in 4Q, a negative 430,291 sf.

Average asking rents in the 132.6 million-sf warehouse/distribution sector are $4.51 per sf; and $6.79 per sf in the 15.4 -million-sf R&D Flex category.

"Although the year-to-date absorption was negative, more than half of the industrial submarkets posted positive net absorption in the fourth quarter," says Jeffrey Sweeney, Grubb & Ellis' regional managing director. He calls fourth-quarter absorption activity "another encouraging sign that the market is slowly but surely moving in the right direction."