During the first quarter of 2008, absorption kept pace with the new space added. However, leasing activity has picked up during the second quarter of 2008, with over 1.5 million s.f. of space absorbed (2.4 million s.f. overall for the first six months). This compares to nearly 1.5 million s.f. of new space in 2008. Not surprisingly, overall vacancy for the three counties decreased from 5.40% (first quarter 2008) to 5.05%, which is below the vacancy rate of one year ago (7.11% mid-year 2007). Presently, nearly 4.2 million s.f. is under construction, and based on the first half results, demand appears to remain good. Our local economy is still expected to see positive employment growth, particularly in the manufacturing sector in 2008 (4,500 new jobs projected), before leveling off in 2009. Overall employment is expected to grow by 1.8% in 2008, and 1.1% in 2009. While this is much lower than 2007 (3.2%), the 2008 growth is triple what is expected in the U.S. (0.6% in 2008).