Summary & Outlook

• The U.S. economy is expanding rapidly, 2004 will end with 4%+ growth and 2005 will be near 3.5%.
• Demand in the warehouse sector is endemic, and especially strong in port markets.
• R&D space demand is returning in some key markets: Washington, Raleigh, Seattle, and San Diego.
• Construction levels will remain strong, preventing a quick recovery in vacancy.
• Warehouse vacancy will fall to 10.7% by 2007; flex will fall to 13%.

Previous Page