BOSTON-According to CB Richard Ellis' Econometric Advisorsforecast, the industrial market will see national availability peakat 14.2% by the end of 3Q10. However, the fourth quarter will beginavailability's decline, eventually dropping almost a fullpercentage point lower by this time next year. Notably,industrial markets in the hardest hit areas of the housing crisisare ticking up; areas such as California, Florida and Nevada.

"What drove the warehouse demand were things like furniture andconstruction materials," explains Luciana Suran, economist,CBRE-EA. This led to poor performance in those markets warehousespace as those housing necessities declined with the bottomingmarket. "In the past two quarters, we've started to seedemand in some of the major markets in those areas," Suran tellsGlobeSt.com. "Los Angeles for example, has seen positivedemand."

This isn’t to say the market is rocketing back to health. Someof the lesser-affected areas, such as Indianapolis, never truly hada downturn for their industrial markets, since the housing crisisdid not hit a fevered pitch; so the health in these areas are to betaken with a grain of salt. "They're not coming out of this verystrongly," she explains. "It's really a slow climb."