They will be able to negotiate more aggressive leases asbuilding owners become more and more eager to fill space, the realestate company forecasts. Short-term, financing will be hard tocome by, except by the most established of companies, such asJackson Shaw and Magnum Opus.

While there will be some short-term bargains available, thelong-term challenge will be the inability of supply to meet thepent-up demand for industrial space, researchers say. "Constructionof new product in some cases, such as Pine Canyon Business Center,may be delayed until early 2003," cautions the company. "Additionalareas including Speedway, Henderson, Ardon and Sloan may beaffected."

On the other hand, road improvement, such as the widening ofsouthbound Interstate 15 from south of Sloan to Primm, will shortenthe drive time from Southern California to Las Vegas and open newmarkets for industrial developers. About 25% of Las Vegas' visitorscome from the LA area, Grubb & Ellis notes.