"We are beginning to see some early, yet encouraging, recoverysignals, as the manufacturing sector is improving," says locallybased Craig Meyer, managing director and head of JLL's NorthAmerican Industrial Services team. "The most important growthindicator we're seeing is the bottoming out of packaged goodsinventories," he relates. "The increase in global trade volumes inso far this year is another encouraging signal pointing towardincreasing future demand for industrial property."

While the industrial sector will recover a few quarters ahead ofthe office sector beginning toward the end of 2010, it will not beimmune to the risks of extensive sublease space, facility closures,consolidations and downsizing that could continue well into 2010and 2011, finds JLL.

"Even though we expect the industrial market to start itsrecovery in the second half of 2010, a long term and sustainedupswing will take some time," says Meyer.