MCI Worldcom Intermedia voided its 800,000-sf lease at its building in the Highwoods Reserves project in the northwest submarket of New Tampa, FL. "This tenant leaving is the main reason the Bay area dipped so heavily into negative absorption" in Q1, says Colliers Arnold analyst Jeremy Kral.
The North American arm of Germany-based Deutsche Bank in New York has been inquiring about the vacant space, Kral says.
Continued weak demand has raised class A office vacancies to 16.93% in Q1, up 2.5% from 14.36% in Q4 of 2002. Kral predicts vacancies could top 17% by yearend.
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