Garfield calls industrial the "bread and butter" of theinvestment world, a reliable product that is always needed and lesssubject to fluctuations in demand. "Where there have been hugerun-ups in prices and lowered cap rates on other asset types,industrial has not moved that much, so it's not going to fall offthat much," he says.

Cary Krier, senior vice president in the Dallas office of JonesLang LaSalle, agrees with Garfield's assessment, but he emphasizesthis doesn't mean the credit crisis has had no impact at all. "Theassumptions we're building into models today are very differentfrom a year ago," he says. "Everything has to cash flow now. Youcan't get by on expectations of large rent increases. You have toshow income from the start."

Yet even that isn't 100% true, says John F. Pantone, senior vicepresident in the Chicago office of Buchanan Street Properties,which is close to sewing up $66.6 million in bridge financing forthe acquisition of a vacant 770,000-sf historic warehouse propertyin Washington, DC. The loan is coming through even though the sitewill have to be redeveloped before it can be leased out and startgenerating revenue. On the other hand, the Newport Beach, CA-basedcompany had to provide $32.8 million of equity, or nearly a thirdof the purchase price, to assure financing.

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