Though the Europe, Middle East and Africa (EMEA) region isexpected to show slower growth this year due to a sluggish globaleconomy, Spain, the Netherlands, Austria, Belgium, Sweden, Denmarkand the UK are forecasting higher yields. Yields should remainsteady in other EMEA markets or possibly show a decline, the reportsays.

Though North American markets as a whole were not as strongduring this year's first half as they were in the first six monthsof 2007, Western Canada is outperforming that period. But thereport expects industrial conditions to "hold steady" in NorthAmerica as a whole or slightly decline.

Economic growth rates will be the highest in China, increasing9.8% this year, and India, up 7.7%. Those conditions are expectedto slow slightly next year. Warehouse in Asian port cities remainsstrong with Hong Kong, Singapore and several markets in Japan,commanding $15 rent per sf.