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commercial development in the region has resulted in a local and regional tax base that is heavily reliant on residential property values. Thus, interviewees showed an eagerness to promote additional sales tax generating uses within the Hillsborough downtown, along the US 70 corridor, and in the commercial district south of the Eno River. Retail Retail space in Hillsborough is largely concentrated in the downtown and along the Church Street /State Highway 1009 h is large.] south of the Eno River and north of I -85. According to brokers, retail in the downtown has remained relatively strong, wnHi recessionary pressures. Approximately test years ago most of what is now retail in downtown Hillsborough was occupied by first floor office suites. Since that time, local activism and the efforts of local real estate stitute one of professionals have successfully attracted retail establishments that now con Hillsborough's main attractions. South of the river, retail remains relatively healthy, except for the Daniel Boone Shopping Center which has historically experienced frequent turnover. Overall vacancy in the local market was estimated in the low teens. This is in contrast to figures published by NAI Carolantic that suggest a 2008 shopping center vacancy rate of only four percent. However, the only apparent vacancies in the downtown are the forme' government buildings along Church Street. Lease rates for retail space reportedly range between $18 and $22 per square foot, per years eago when s paces per square only $14 pensqua This is a significant foot, per year or change 1$11.00 per square foot, per month. Office Office space in Hillsborough is reportedly exhibiting an elevated vacancy rate of roughly 2 percent. In comparison, CBRE reports an office vacancy rate of nearly 22 percent for the Triangle region, and over 17 percent for Orange County. Net absorption in Orange County and the Triangle region show a reported loss of 14,200 square feet, and 494,600 square feet, respectively, in the second quarter of 2009. This implies an increasing level of vacancy. Broker reported lease rates for office space between $10 and $16 per square foot, per year; or $0.83 to $1.33 per square foot, per month. This is significantly lower that) the County and regional averages of $22.06 and $20.55 per square foot, per year, respectively! These depressed lease rates emphasize that Hillsborough is a secondary destination in the market for office pace. Industrial and Flex Similar to the office market, flex space is experiencing an elevated, but much more reasonable, NAI Carolantic Realty. 2009'1'riangle Connnerciat Real Estate Report. ++n +'++'xarolantic.com. Accessed November 5, 2009. CB Richard Ellis. iularketView: RaleiglilDurham, North Carolina— Office. +�� +'++'•ebre.eondreseare . Accessed: November 5, 2009. 23