A few dot-gones with industrial needs have disappeared or been swallowed by consolidation or reorganization, leaving behind large sublease space, according to the report, but land values remain extremely strong and prices continue to rise. "Developers and users continue to review any available industrial land for future development with the expectation that this current economic downturn will be short-lived," states the report, "and that by the end of this year the high-tech manufacturing sector will be back into a growth mode."

In addition, finds the report, industrial buildings have maintained their value. The report cites a recent study by Integra Realty Resources ranking Portland in the top ten markets in the country for industrial investment with an anticipated growth in value of 8% through 2003.

Looking at specific markets, Grubb & Ellis says the southeast industrial market is gaining momentum thanks to the impending opening of the Airport light-rail line and increased development activity east of I-205 to Gresham. "Land prices remain firm at $4.75 per sf with some new deals currently in play rumored to be at $5.75 per sf," finds the report. "This has kept speculative development to a minimum and led to an increase in user deals."