"The fundamentals are clearly stronger than they were in the1980s, but we have to closely monitor construction to preservemarket health," says Janice Stanton, managing director ofinvestment research for Cushman & Wakefield Inc.

The words of caution fall on the heels of the FDIC keepingDallas on its "at risk" list and adding Ft. Worth as an area ofpotential overbuilding. But, it's definitely not the 1980s, Stantonemphasizes. Urban vacancy rates are 7.1% on the average nationallyin comparison to 15% in 1986; suburban rates are 10% now instead ofthe 23% experienced 14 years ago. Today's construction is abouthalf of the 1986 levels, with most CBDs at 6 million sf incomparison to 36 million sf and suburban markets on the average at70 million sf instead of 140 million sf. Plus, Stanton says,capitalization rates are significantly higher.

"We just need to keep an eye on the markets as we slow," Stantontold Cushman & Wakefield brokers at an annual breakfast at LasColinas' Omni Mandalay. Dallas, Atlanta and Phoenix may be"slightly overbuilt," but, she says, it's important to realize thatall three metropolises have added 10% of their available inventoryjust in the past 10 years--and vacancy rates are still at safelevels in all three regions.