Housing in these markets is generally unattractive and thus difficult to rent, therefore buildings lose money due to high vacancy.

They can lower their costs over all because of the relatively high vacancies.

Mr. Berson was not so optimistic about commercial real estate because of the "high vacancy rates."

As a result, there's been a slowdown in the net absorption of space, which is leading to higher vacancies and more modest rent growth.

But even those with, or anticipating, high vacancies are commanding solid prices.

The state's push to relocate downtown is continuing even as buildings are filling up and rents are rising after years of high vacancies.

Almost every major market in the country follows the same trend of substantially higher vacancies in the suburbs than downtown.

If anything, the high vacancies have made competition between the cities and their suburbs more intense, and eroded much of the rural market's price advantage.

The mall had also begun to lose tenants, reaching its highest vacancy rate, at least 27 percent, in 1993.

"While we're doing well, the high vacancy in the county casts a negative pall which tenants try to use against you," he said.