The Sarasota/Manatee County area showed an overall vacancy rate of 8.5 percent for the first quarter, compared with 7 percent for the same period a year ago, according to a Colliers Arnold analysis.

Class A office vacancy for the Sarasota area was 12.2 percent. Absorption for the first quarter registered a total of -178,710 square feet, compared with 47,819 square feet in the fourth quarter 2007.

The lower absorption total clearly illustrates the slowdown in local office demand. This has translated into owners offering increased tenant improvements (T.I.), broker incentives, lower escalations and free rent to get lease deals done. In fact, with more choices available, some brokers report that prospective tenants are actually “shopping the T.I. and concessions deals” in the market before making decisions.

Three new office buildings were completed in the first quarter, yielding a total 70,650 square feet, of which 29 percent was pre-leased or pre-sold at completion.

Five office buildings totaling 86,731 square feet are currently under.

The overall direct average lease rate of $22.11 per square foot represented a decrease from the fourth-quarter average of $22.71.

The Class A, first-quarter rate was $26.37, down from 29.57 in the fourth quarter.