But, the coming year is being painted with more of the samecautious optimism from industrial sector executives as those in theoffice arena. Most in the industry are adopting a wait-and-seeattitude about the nation's economy while keeping fingers crossedfor a status quo bare minimum. The saving grace for 2001 could besmall tenant deals, which will outpace big-box transactions,predicts Randy Baird, a senior director for Cushman & Wakefieldof Texas Inc.'s Dallas office.

"We recognize we are technically under the watch," Baird tellsGlobeSt.com, "but the flip side is absorption has continued to hitrecord numbers and overall vacancy has stayed at 7% or lower forthe last six years." That's just Dallas, but the same is prettymuch true throughout the southwest.

Dallas had closed the third quarter, with 6.5 million sf incompletions and 8.9 million sf in absorption. The average rental is$3.81 net per sf for warehouse space while office-showroom and techspace is fetching $8.68 per sf. The rents are slightly underAustin's average industrial cost, but running just a tad ahead ofHouston and San Antonio. The lowest vacancy is 2.6% in theRichardson Telecom Corridor, says Baird.