"The whole point of our $500-million disposition program is torecycle capital into higher yielding assets," says Brennan. "Theaim is to increase the returns from our portfolio."

To accomplish this, Brennan has embarked on an aggressivedisposition program to exit markets where returns have beenunacceptable. The cash from these dispositions will be recycledinto new markets across the country, the most important of whichare Los Angeles, Dallas, Denver, Chicago, Northern New Jersey andAtlanta, according to Brennan. The latest disposition was announcedearlier this month, a big sale of First Industrial's entire LongIsland portfolio to an undisclosed buyer.

"It looks like they are going to pretty much have thedispositions taken care of by the end of the year," says LouisTaylor, real estate analyst at Prudential Securities. "Brennan isimproving the quality of the asset base, improving returns andleveraging their core competence, which is owning and managingproperties and doing developments for large corporate clients."Taylor just raised his recommendation on First Industrial to"Strong Buy" from "Accumulate".