  The market's historical absorption rate since 1997 is estimated at 150,000 to 200,000 square feet per annum with an average of 175,000 square feet.  At this rate of absorption, assuming no new construction, the office market will not regain 5% vacancy levels in more than nine (9) years.  
  New office projects under construction include the two projects being contemplated for Hato Rey's two urban train stations, office projects at the Puerto Rico Convention Center, mixed-use development project in the former BPPR land parcel adjacent to BBVA in Hato Rey, the second office tower at City View Plaza in Buchanan, DASE Office Building in Guaynabo, office project at the former Café Rico site in Buchanan, and conversion of the GRANA industrial facility in Guaynabo.

Hato Rey-Inner Core
  Area          Occupied    Occupancy
  2,872,921     2,523,706      88%

Hato Rey-Periphery
  Area          Occupied    Occupancy
  1,944,728     1,836,898      94%

Guaynabo/Caparra
  Area          Occupied    Occupancy
  2,831,129     2,336,874      83%

Santurce/Miramar
  Area          Occupied    Occupancy
  807,313       673,233        83%

Rio Piedras/Montehiedra
  Area          Occupied    Occupancy
  1,145,995     1,110,435      97% 

Old San Juan
  Area          Occupied    Occupancy
  176,000       158,600        90%

TOTAL:   AREA         OCCUPIED     OCCUPANCY
          9,778,086    8,639,746         88%



