But, says Kirk, there are three things that owners who want more can do. Owners historically have relied upon market appreciation for gain. In the coming year, building owners will have to work for such gains so it will be vital to lower costs, retain tenants, and seek creative income opportunities.

The "state of the business" comments came from the head of a national firm which has utilized quality client service through employee training and cutting-edge technology to achieve portfolio growth totaling nearly 35 million sf in the past two years. "Well-run property management and leasing operations will become increasingly important to commercial property owners in 2001and beyond," Kirk says, "as a slowdown in rental growth may make it difficult for owners and investors to achieve the desired returns through market appreciation."

Office and industrial rents, having spiked in 1997 and 1998 before hitting a plateau in 1999 and 2000, show no signs of major fluctuation ahead," he assesses. "The few rent spikes that have occurred in the past year have been in office markets heavy with high-tech tenants, and these markets may soften, depending on the performance of the Internet and telecom sectors of the economy."