Dallas vice president Don Ostroff and associate Will Balthrope have authored the DFW section, which predicts rent growth is well positioned to exceed the 3% logged in 2000. Few, if any, concessions are being offered to prospective tenants as supply dwindles. Last year's net absorption of 26,900 units had pushed year-end occupancy to 95.7%, up from 95.2% at the start of 2000, says the team. Rent and demand are up and construction is down, delivering good news on the metroplex front. Last year, 23,000 units had delivered.

"Acquisition directors from every part of the country can be seen on a weekly basis touring properties," according to the report. "Even many syndicators who have not bought in Dallas in recent years have returned en masse, scouring the market for the legendary good deal."

Ostroff and Balthrope say the would-be investors are carefully crunching the numbers and few are willing to overpay. Prices are rising moderately amid dropping interest rates.According to the report, value-added class-B and class-C deals now on the market have piqued interest in the investor ranks. While interest remains high in the Golden Corridor in the center of North Dallas, investors also are checking out availability in the CBD and eclectic Uptown area, where construction has been up and average rent is now riding at $1.25 per sf. Searches also have crept into literally dozens of submarkets, say the multifamily specialists.