Realvest founder George D. Livingston projects 2005 will be evenbetter. "The last three years have been really bad ones for thecommercial real estate industry," he tells GlobeSt.com. "In theCentral Florida market and nationwide, the vacancy in officebuildings is really high and [only] just now recovering."

He says low interest rates are "the biggest difference betweenthis recession and the last major recession in the 1980's. In the1980's, the market fell off and interest rates skyrocketed, drivingmany commercial property owners into default and Chapter 11." Butthis recession is different, he says. "Even with a low occupancyrate, most developers and landlords are able to hold onto theirassets."

The retail and residential sectors are "the engines driving thecommercial real estate economy," Livingston tells GlobeSt.com. Forexample, he says "you've got land zoned for office and industrialthat's not selling, and it's starting to be zoned back toresidential to meet the market demands."