Jim Hebert, president of Hebert Research, a Bellevue, Wash –based firm, said his company recently completed a study that supports the commonly held philosophy that a slowdown is here for quite some time. The Hebert study found that only 13% of local executives expected to expand their facilities during the next 12 months, compared to 23% one year ago.

"The other interesting fact was the number of companies that have entirely postponed the idea of expanding," Hebert said. "It is really affecting the market, especially new construction."

Hebert pointed to a new project in Bellevue that has virtually stopped construction after a deep excavation for an underground garage. "In the past few years, work would have progressed as quickly as possible, "Hebert said. "Now, the building has not received the prelease commitments it expected so things have come to a halt."