Region's Industrial Absorption Outpaces Completions Across the Board

DALLAS-Is the honeymoon over for continued explosive growth in the southwestern US market, specifically the industrial arena? That’s food for thought as the signs of a slowing economy trigger concern, but not alarm, among regional real estate executives. Construction completions and tenants quick to ink space give a strong measure of security to the region, with its “coast to coast and border to border” positioning as a main attraction.

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.