Although bean-counting methods differ, office groups say thesector's vacancy citywide is 20%, putting Dallas in the thirdhighest slot in the US. Nonetheless, the absorption--pushing abovethree million sf for two consecutive years--is predicted to happenagain this year. And, they say, the Uptown and Downtown projects inDallas and Fort Worth are welcome sights to a large degree becauseso much class A space has been absorbed.

Likewise, industrial movers and shakers say the 15 million sfthat's underway isn't destined to create turmoil with vacancy,which is now averaging 10% in the region. The only differencebetween the two sectors is rent growth, but the prognosis is thatindustrial will tick up just slightly again this year. Office ratesrose 6.5% in the past year.

The positive reading came from a NAIOP panel at its monthlymeeting at the Dallas Country Club in Highland Park. The featuredattraction, moderated by Bill Cawley of GVA Cawley, had RandyCooper, executive director of Cushman & Wakefield of Texas Inc.and Phil Puckett, managing director of CB Richard Ellis, taking thepulse of the office market and Tom McCarthy, executive vicepresident of Staubach Co. and Rick Medinis, executive vicepresident of NAI Robert Lynn, giving the industrial reading.