At the same time, a new report from Marcus & Millichap'sNational Office and Industrial Properties Group shows that despitethe clear decline in deal flow, the US office sector remains poisedto generate more than 4,000 transactions in 2008. That would rank2008 on a par with 2004 levels and well above the average from 1995to 2005.

In its recent revision of GDP figures for the second quarter,the Commerce Department adjusted its estimate for the nation'ssecond-quarter GDP growth to 3.3% from its earlier forecast of1.9%. The new figures confirmed what Nadji had forecast during awebinar conducted by GlobeSt.com earlier this summer, and the GDPfigures carry significant implications for the commercial realestate industry.

Nadji explains that he expected the 3.3% GDP growth for a numberof reasons. First, the economic stimulus checks that US consumerswere spending provided "a large boost in consumption" thatbolstered economic growth. Second, Marcus & Millichap expectedthat rising US exports would help to offset the drag that housinghas been exerting on the economy.