The state is sure to feel a pinch from the nation's economic slowdown, but "we're well positioned to weather the storm compared to most markets," Charles Bissell, managing director of Integra's Dallas office, tells GlobeSt.com. Commercial real estate, he says, will definitely benefit from Wall Street's flirting bear market. "It's a safe haven when the market's not performing," Bissell asserts.

In the suburban office sector, the top cities, in order, are San Diego, Austin, Sacramento, Washington, DC, Phoenix, Denver, Boston, Dallas, Atlanta and Orange County, CA. In the industrial market, the top 10 are Houston, Seattle, Denver, San Diego, Las Vegas, San Antonio, Phoenix, Dallas, Atlanta and Portland. In multifamily, the ranking is San Diego, Atlanta, Sacramento, Tampa, Phoenix, Austin, Houston, Denver, Minneapolis and Washington, DC. And in retail, it's Seattle, Houston, San Diego, Portland, Minneapolis, Austin, San Jose, Las Vegas, Sacramento and Phoenix.

Investors are realizing the profit of investing their capital in Dallas, where suburban office properties' value has spiked 22.1% in the past three years. CBD office value is up 18.9% while retail's up 15.7%; industrial, 11.5%; and multifamily, 18.8%.

"I think that Texas is in the driver's seat at this point," says Bissell. "With the publicity that we've had in California with utility problems and that sort of thing, I think that Texas is going to stay on the map as a go-to state for new businesses."

Certainly, Boeing Co. thinks so, putting Dallas in the running for a corporate headquarters relocation from Seattle. And, say some insiders, Dallas is looking more like the winner against competitors Denver and Chicago. It's the same reasons other corporate giants have opted to move here: ready coast-to-coast and border-to-border travel, a skilled labor pool, business-friendly incentives and a lower cost of living. "Corporations are under increasing pressure to watch the bottom line, especially as the economy slows," Bissell says.

Integra forecasts Dallas' suburban office market values will climb 4.3% from this year through 2003, falling 3% shy of what is expected to be the national average. In the industrial sector, Dallas' property values should see a 6.3% increase in the next three years. Multifamily property values are predicted to go up 8.9% through 2003 and retail, a mere 1.3%. In contrast, retail property values are forecast to rise 6.3% nationwide for the same time period. With Dallas' current 12.9% retail vacancy, Viewpoint 2001 says it will take at least two years before supply and demand are in balance.

Dallas' high-tech industry is driving the industrial demand but, says Bissell, "investors should heed a few yellow caution flags." The 9% vacancy is 1.4% higher than the rest of the nation. Viewpoint 2001 predicts about three million sf will be absorbed in the coming three years, but also says Dallas will need about two years before the scale is balanced between supply and demand for the industrial side.