CHICAGO—Earlier this week at a conference hosted by BMO Capital Markets, James Connor of Duke Realty concluded a panel session by pointing out how well things are going in the industrial sector. Rents are on the upswing, new development has increased and occupancy and absorption remain high. And the good news is not just for developers.

"It's a welcome sign for investors and encourages them to put their money into this very healthy asset class," Erik Foster, an Avison Young principal, tells GlobeSt.com. And although some have raised the possibility that all this robust leasing activity might encourage overbuilding, there has been little sign of that happening.

"The recession took out a number of smaller developers," he says, and this has been just one of the factors keeping the market from becoming too exuberant. The equity requirements for industrial projects have been raised and banks are in general considerably more cautious about lending. Borderline projects that may have gotten a green light in the go-go days of 2007 now don't get off the drawing board. "It requires real equity and expertise to do a development these days."