"The record-breaking absorption is the big story" in the second-quarter performance of the 88-building market located south of the 408 Expressway, says Lyle N. Nelsen, Rebman's corporate and industrial specialist. He has compiled the quarterly statistics since 1986. Nelsen forecasts a total 700,000 sf will be leased for the entire year. First half absorption totaled 399,174 sf.

"It's a landlord's market with landlords afforded the luxury of being choosy in selecting credit-worthy tenants and no more free rent," Nelsen says. "Modest improvements will be included and expansion tenants will take priority." For brokers representing space-hunting clients, the current market is "a challenge, but what else is new in this business?" Nelsen says.

Nelsen predicts "the no-vacancy signs will be going up" shortly. He says 55 of the 88 buildings surveyed by Rebman are full, "with very little space available in the remaining buildings. "We are seeing the results of this tight market (already) with higher (quoted) rents," the broker notes. "One center is reporting an increase of $2 per sf."