After a flat 2010, Northeast limped into 2011 with a moderate 32,000 square feet of negative absorption. Total vacancies have been fluctuating between 23.0 and 24.0 percent since late 2009 and totaled 24.4 percent at the end of first quarter. As so much of the submarket’s inventory continues to sit empty, rental rates have fallen off by nearly $1.00 per square foot since this time last year to end the quarter at $16.70 per square foot. Northeast is likely to lag in its recovery toward more balanced fundamentals as most of the active prospects in the submarket are existing occupiers. To remain competitive, landlords will be unable to raise asking prices and rental rates should be flat in the immediate future.