CHICAGO—In the past year some observers of the US industrial market have raised concerns about the quickening pace of new development and wondered if a glut was forming. But in Chicago yesterday, at BMO Capital Markets' 10th Annual North American Real Estate Conference, it was apparent that industry leaders remain fairly bullish about the sector's prospects.

“The US market has had ten straight quarters when demand outstripped supply,” said James Connor, senior vice president and chief operating officer of Duke Realty, one of the nation's most active builders, at an afternoon session on e-commerce and the future of warehousing. There are a few markets, such as Dallas and Phoenix, that he would put on a “watch list” because its at least possible that developers in these metro areas have launched too many projects. However, he also pointed out that Dallas is on a record pace when it comes to absorption, so the warning was a mild one.

The decline in oil prices has worried some, especially those with real estate interests in cities dependent on the energy sector. But Marshall Loeb, president and chief operating officer of EastGroup Properties and another panelist, said that although company officials are closely watching the market in Houston, so far the oil price collapse has not made a serious dent in demand. In fact, its properties in Texas are about 97% occupied. “We're more worried about recession than oversupply.”