Calvin Hull, C&W's executive director in Dallas, says some,like himself, believe the mercury could be as high as 10.5 millionsf. Regardless, it's the highest level that has ever hit the Dallasmarket to the best of his recollection. Hull tells GlobeSt.com thatinventory changes from the late 1980s real estate crash make it toodifficult to compare days gone by to today's situation. Across allclasses, the inventory stands at 159.1 million sf.

The 2002 leasing activity has brought 5.4 million sf ofclosings, of which 919,386 sf or 17.1% were subleases, according tothe C&W market watchers. And those done deals have come atsignificantly reduced rates. In the 16 submarkets polled, subleaserates undercut direct rates by as little as 28 cents per sf to asmuch as $4.69 per sf.

"Where will we end up? Who knows," Hull says. "There is atremendous amount of supply and very little demand." The marketalso is bearing nearly 33 million sf of open direct space.

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