Job growth is at an all-time high, bringing with it anacross-the-board booming office market, with construction down andabsorption high in comparison to 1999 year-end statistics. Unlessthe economy bottoms out, they say a healthy balance will continuein 2001.

Austin has the highest occupancy and highest rents. "We've neverhad negative absorption," says Walter Saad, Insignia/EST of TexasInc.'s Austin regional director. He predicts absorption will hittwo million sf when year-end calculations are complete. There'sbeen no hard fallout from failing dot-coms, six of which have gonebelly up in recent months. "A vast majority of that space alreadyhas been backfilled," he says.

Two years ago in the Dallas-Ft. Worth region, 18 million sf haddelivered and only half of it had been absorbed. This year, 11.2million sf has delivered and 6.5 million sf had been absorbed bythird quarter's end. Absorption should equal 1999, with year-endfigures of 7.1 million sf being predicted, says Steve Thelen,Cushman & Wakefield of Texas Inc.'s senior director. Newproduct is "being soaked up" nearly as fast as it delivers, hesays.