But, the coming year is being painted with more of the same cautious optimism from industrial sector executives as those in the office arena. Most in the industry are adopting a wait-and-see attitude about the nation's economy while keeping fingers crossed for a status quo bare minimum. The saving grace for 2001 could be small tenant deals, which will outpace big-box transactions, predicts Randy Baird, a senior director for Cushman & Wakefield of Texas Inc.'s Dallas office.

"We recognize we are technically under the watch," Baird tells GlobeSt.com, "but the flip side is absorption has continued to hit record numbers and overall vacancy has stayed at 7% or lower for the last six years." That's just Dallas, but the same is pretty much true throughout the southwest.

Dallas had closed the third quarter, with 6.5 million sf in completions and 8.9 million sf in absorption. The average rental is $3.81 net per sf for warehouse space while office-showroom and tech space is fetching $8.68 per sf. The rents are slightly under Austin's average industrial cost, but running just a tad ahead of Houston and San Antonio. The lowest vacancy is 2.6% in the Richardson Telecom Corridor, says Baird.