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DENVER-The metro-area industrial market, unlike the local office and retail markets, is still bouncing along the bottom, according to a recent MarketScope report by the Trammell Crow Co. And the industrial market isn't poised to skyrocket anytime soon. Rather, Trammell Crow predicts it will be a slow recovery.

One reason is because Denver is not home to a high concentration of headquarters, so "the blockbuster corporate relocation providing a quick jolt to the job market is a long shot at best," the report notes. Although that may seem to apply more to the office market than the industrial market, the report goes to say that the city also is "not high on the list of major distributors. Economic growth will instead come from small business in slight increments over time, leading to an eventual but very gradual improvement in the industrial sector."

The report notes that the industrial vacancy rate in the fourth quarter jumped 50 basis points to 9.6%. Vacancies had been up and down all of last year, after finishing 2004 at 9.5%. The market slowed in the fourth quarter, after a strong second and third quarter, Trammell Crow notes. Net absorption through the end of September totaled 1.34 million sf., but about half of that was lost in the fourth quarter.