According to which report you read, industrial vacancy eitherfell from 4.6% at the end of the first quarter or rose from 4.3%.With regard to rates, the reports agree that the average askingrate is up $0.01 from the end of the first quarter.

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Net absorption through the first half of the year totaledsomewhere between 2.3 million sf and three million sf, according tothe reports, while new deliveries totaled somewhere between 3.2million sf and 3.6 million sf.

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Due to differences in what buildings are included in theirresearch and how they are categorized, the two reports differgreatly when it comes to vacancy rates by product type. While theygenerally agree that the highest vacancy rate is in R&D/flexspace and the lowest vacancy is in warehouse/distribution space,they are far apart on the actual vacancy.

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Applied Analysis pegs the vacancy rate in the R&D/flexmarket, which is essentially industrial space built out for officeor lab use, at 5.5%; Restrepo and Colliers say its 11.6%. AppliedAnalysis pegs the warehouse/distribution vacancy rate at 4.1%;Restrepo and Colliers say its 2.6%.

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The disconnect flows through to the amount of space underconstruction as well. Applied Analysis says nearly seven million sfis under construction while Restrepo and Colliers say that 2.5million sf is under construction.

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Looking ahead, Applied Analysis principal Jeremy Aguero says hecontinues to remain concerned about the long-run availability ofindustrially zoned property at feasible prices. "While the markethas been able to accelerate development activity, concernsregarding pricing persist. Maintaining a competitive marketposition within the western region will be critical to attractinglarge-scale distribution firms and complimentary manufacturers tothe Las Vegas valley," he says.

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He adds that "should material escalations in pricing prevail,Las Vegas may become less desirable than other markets, includingthe Inland Empire, northern Arizona, southern Utah and othersurrounding jurisdictions."

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