"We are beginning to see some early, yet encouraging, recovery signals, as the manufacturing sector is improving," says locally based Craig Meyer, managing director and head of JLL's North American Industrial Services team. "The most important growth indicator we're seeing is the bottoming out of packaged goods inventories," he relates. "The increase in global trade volumes in so far this year is another encouraging signal pointing toward increasing future demand for industrial property."

While the industrial sector will recover a few quarters ahead of the office sector beginning toward the end of 2010, it will not be immune to the risks of extensive sublease space, facility closures, consolidations and downsizing that could continue well into 2010 and 2011, finds JLL.

"Even though we expect the industrial market to start its recovery in the second half of 2010, a long term and sustained upswing will take some time," says Meyer.