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Leslie Smith Leslie Smith says industrial owners in Texas are seeking cash for capital improvements.

HOUSTON—Projected rents are more than adequate in many markets to justify additional development of warehouses and distribution centers, according to a new report from CBRE. The firm analyzed the gap between pro forma rents in various markets–the rental rates that developers can reasonably expect to obtain on newly built warehouses–and break-even rents, i.e., those needed to cover overall development costs. In the 10 major markets that CBRE examined, the former exceeded the latter by 20 to 40%.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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