In the U.S., real estate markets ended 2008 with a thud. Virtually all sectors experienced increases in available space and softening asking rents, while property sales activity stalled as both buyers and sellers entrenched their negotiating positions. In Canada, market fundamentals are starting to show weaknesses, underscored by a slight increase in sublease space in the office market. Vacancy and availability rates are up in almost every asset class. Across Latin America, market fundamentals for the most part remain stable, but a prolonged economic slowdown will drive vacancy rates higher.