Total vacancy rate for medical office space, which rose during most of the last decade has dropped to 11.3% in first quarter of 2012. This is the lowest since late 2008 according to preliminary CoStar data which shows almost 3.5 million square feet of new MOB space being delivered in the first quarter, the highest since early 2009 but still well below similar quarters from 2004 to 2008. Net absorption of medical office space also appears to be rebounding but rent growth remains a problem for many landlords as direct rents have fallen since their cyclical peak in mid-2008.