SCOTTSDALE, AZ—Unlike in the office arena, the large-spacemarket is the top-performing class in the industrial sector. Thatpoint was repeatedly made during the “State of the IndustrialMarket” session on day two of NAIOP’s “Development ’11” conferencehere. Mike Mullen, CEO of CenterPointProperties, and Thomas G. Wattles,chairman of DCT Industrial Trust, shared theirobservations and predictions for the market in a session moderatedby Chris Riley, vice chairman of investmentproperties for CBRE.

According to Mullen, the bigger spaces are leasing well, whilethe vacancies are mostly in the smaller space. “If you have a siteready to go and can offer logistics savings, it’s easy to getsomeone to sign a deal,” he said. Still, the growth isn’t acrossthe board. “It’s in supply-constrained markets, and if you canoffer a value proposition, you can get occupants,” Mullencommented.

He stressed that in this economy, logistics are more of aconsideration than ever for space users. “Our clients are gettingsmarter, bringing the logistics guys into the deal sooner,” herelated. “The real estate guy still puts the deal together, but thelogistics guy has to check it off before it’s ready to go.”

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