Alklay, with all respect I am not sure where the 12% figure came from, and it seems well outside anything reasonable in the current environment.
LePage's review for the second quarter of 2007 indicates a vacancy rate of 4.9% in the financial core district, down from 5.1% in the first quarter. It has been dropping steadily. Total inventory is 33 million square feet, at present, so 12% would be almost 4 million square feet. J.J. Barnicke's vacancy calculation for 2nd quarter 2007 is 5.83% for the whole downtown area (wider than the financial district).
These are considered to be fairly low figures. A 7% to 10% vacancy rate is often considered to be a market "in balance", where rental rates tend to remain stable, not unduly favoring either owners or tenants.
For several years it has been hard to find contiguous space over 50,000 square feet, in the financial district, and the situation will continue to worsen until new buildings are completed in 2009.
Caisse de depot are highly experienced and professional, and they will have done their homework prior to purchasing this property earlier this year.