Every broker in town is aware of the realities of the downmarket. Unfortunately, the researchers believe, it's going to staythat way and get worse before it gets better. Alcatel's decision tosell three buildings, totaling 701,000 sf, acres and 132 acres, allin Plano's bounds, are the latest signs that things haven't changedall that much around town. Every so often, though, there is abright spot as confirmed by last week's signing of that 106,000-sfoffice lease between Travelers Insurance Co. and TPMC Realty ofDallas. And no one's forgetting that the Q2 positive reading camefrom JPMorgan Chase's takeover of 406,000 sf at the JPMorganInternational Center.

The one certainty is that most tenants will continue to reducerather expand in light of the prevailing economic conditions. "TheDFW office market will likely see demand for office space remainanemic throughout the remainder of 2002," the team predicts. On theother hand, Q2 closed out on a somewhat more positive note thanQ1.

What else is ahead? The Grubb & Ellis prediction is the LBJFreeway and Richardson/Plano will continue to lead the region'snegative absorption, thanks to the High Five road project and theongoing tech wreck. LBJ Freeway's 21.7 million sf of product is26.4% vacant and there's another 213,412 sf under construction.Richardson/Plano's 15-million-sf inventory is 27.1% empty, withanother 90,330 sf under way.

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