''Due to the downturn of the dot-coms, and severe softening in the high-tech and telecommunications fields, the market experienced climbing vacancies, slowing new construction starts, negative absorption and the reduction in lease rate and sales prices,'' according to the report.

During the past 12 months, sellers have been forced to drop their saleprices by close to 10%, according to the report.

''Similarly, overall cap rate ranges have risen from 8.5% to 9.55% to 9.5% to 10.5%,'' shows the report.

Still, the market fundamentals remain strong, says Myles.

Even construction projects, such as the T-Rex widening and light rail addition along I-25, which promises to snarl traffic and hurt the office market, is good news for the industrial markets, because contractors willneed to store supplies, Myles says.

Roemer says a slowdown of construction to about a million sf of spec buildings --the lowest level in five years--also bodes well for the market.And falling interest rates also are helping investor returns, he says.

Ray Pittman, a senior vice president at Catellus Development, agrees. Hesays the northeast industrial market, the largest industrial submarket, continues to be strong.

''We continue to do real well there,'' Pittman tells GlobeSt.com. ''We have good activity and absorption in our buildings along the northeast corridor. It's pretty positive.''