"919 Milam and Bank of America buildings will definitely exceedthat," says Rusty Tamlyn, senior managing director with HollidayFenoglio Fowler LP in Houston. In recent months, marketing hasgotten under way for handful of CBD buildings, including the542,000-sf high rise at 919 Milam St., 1.3-million-sf Bank ofAmerica building at 700 Louisiana St. and 372,000-sf building at1001 McKinney St.

Darrell Betts, senior vice president with Grubb & EllisCo.'s Houston office, also predicts Downtown office sales will hitrecord levels in 2007, putting it down to increasing rental rates.According to Grubb & Ellis' latest statistics, the CBD'savailable space is 5.9 million sf in the 35.5-million-sf inventoryor translating to 83.3% occupancy. Still, Betts points out,Downtown rents grew at an unprecedented rate of 13% during2006.

"With the record level absorption we've seen throughout thearea, including the CBD, Houston's become a desirable place forinvestment," Betts adds. "The smart owners are the ones who sawthis coming 12 and 18 months ago and bought then."