July, 22 2008 The U.S. industrial vacancy rate ended the second quarter at 8.2%, an increase of 30 basis points from the first quarter and 60 basis points from the year-ago quarter. Net absorption fell to 9.6 million square feet in the second quarter, its lowest level since 2003-Q1 and well below completions totaling 45.8 million square feet. Asking rental rates were flat. The market has embarked on a softening cycle that is likely to extend through at least mid-2009, but the pace of deterioration is expected to be shallow compared with the last down cycle in 2001 and 2002. Market update information provided by Bob Bach — National Director, Market Analysis, Grubb & Ellis Company Copyright © 2004 Grubb & Ellis Company.