"Things will come back," Al Sorrels, industrial partner inDallas for Sacramento-based Panattoni Development, tellsGlobeSt.com. But for now, less is better when it comes to buildingand leasing in what is historically a premier US distributionhub.

A five-year trend for mega-box construction has subsided, withbuildings now hovering in the 250,000-sf to 600,000-sf range.Several projects of that size are under way in the region. Whatonce was considered large, "today, nobody really thinks about it,"says Sorrels.

Granted, building costs are considerably less with theindustrial giants, but it's a "double-edged sword," says thePanattoni executive. "You've got more exposure because you've gotmore space up." Risk building has been replaced by build-to-suitsfor the most part while everyone waits for a nationwide economicrecovery.

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