A Grubb & Ellis study of the telecommunications real estate market...

A Grubb & Ellis study of the telecommunications real estate market shows telecom vacancy levels dropped to 38.9% in the second quarter, from 44.6% in the first quarter. The decline reflects the number of tenants who had pre-leased space in earlier quarters, not an improvement in demand for office space, according to the study. With the decline of venture capital and poorly capitalized telecoms, the demand for space is unlikely to equal that seen in 1999 and 2000 anytime soon. Vacancy rates exceed 30% in most major markets, the study showed, indicating there is still a large surplus of inventory waiting to be absorbed.