"Market fundamentals are improving in a variety of sectors and I expect considerable improvement in the industrial and technology sectors as we move through 2004," Brad Fletcher, executive vice president, managing director and head of the industrial division for Grubb & Ellis Co.'s Portland office, tells GlobeSt.com. "Short of any new domestic or international surprises, watch for 2004 to mark a return to stabilization in Portland's industrial real estate market."

According to a Grubb & Ellis forecast report, 2004 will be a year of optimism for industrial real estate as an improved economy fuels demand for properties. "We're cautiously optimistic that we're on the mend and perhaps oriented towards a more sustainable growth pattern, " Fletcher says.

But not all sectors of the industrial market will see a quick rebound, the forecast study shows. While industrial real estate will remain a much sought after commodity, research and development and flex are expected to remain stagnant as vacancy rates continue to remain elevated in the 14% range, about three percentage points above 2003's across-the-board end of 11.2%.

Improvements in the national economy, however, will drive tenants and users to take advantage of the market's opportunities to move into higher class properties, helping building owners with state-of-the-art facilities to quickly lease up their buildings. Developers or landlords who give tenants the option to buy will have a leg up on the competition as users move to take advantage of low interest rates and market conditions to move into ownership, the report states.