"It's still a tricky market. You've got to get in and out ofDallas," Casey Wold, senior managing director of New YorkCity-based Tishman Speyer Properties, told the record-breakingcrowd of 500 at yesterday's general meeting of the Real EstateCouncil in the Westin Galleria in North Dallas. Joining Wold on thepanel was Steve Van Amburgh, CEO of locally based Koll DevelopmentCo.; Mark Gibson, executive managing director for Holliday FenoglioFowler LP; and Donald Miller, chief real estate officer forAtlanta-based Wells Real Estate Funds. Hillwood Investments CEOTodd Platt was the moderator.

Despite Wold's caution, Gibson stressed "the institutionalmarket actually looks on Dallas very favorably." So much so thatcoastal owners, both domestic and foreign, are shopping streets inTexas and other central US states. Although their expectations forreturns might be lower due to market conditions, they still expectto see rent growth.

Rising construction costs, here and elsewhere, have a chokeholdon growth. "It's putting a lot more risk in our pockets," VanAmburgh said. "The end result if rental rates aren't rising, andconstruction prices and labor costs are, the one question is itworth it to build. The risks aren't being spread around."