Real Estate

Industrial

The first quarter of 2007 ended on an impressive note for the industrial market with the last three months resulting in the strongest positive net absorption year to date with 1.2 million sq. ft. recorded. This strong demand for industrial space has pushed the overall vacancy rate to 9.4%.

Industrial Overview	Change from last Year	Change from Last Quarter
Vacancy	Down	Down
Lease Rates	Unchanged	Up
Net Absorbtion*	Up	Unchanged
Construction	Up	Up

* The arrows are trend indicators and represent a positive trend over a specified period of time.

Office

The office market experienced solid growth in the second quarter of 2007. Over 700,000 sq. ft. of space was absorbed in the previous quarter, bringing the total over the previous two years to a total of over 9 million sq. ft. As a result, the current Dallas/Fort Worth office vacancy rate of 20% is one of the lowest rates in the past five years. With the second quarter of 2007 absorption surpassing the recorded absorption of one year ago, positive indicators are forecast to continue into the foreseeable future.

Office Overview	Change from last Year	Change from Last Quarter
Vacancy	Up	Up
Lease Rates	Up	Up
Net Absorbtion*	Up	Up
Construction	Up	Down

* The arrows are trend indicators and represent a positive trend over a specified period of time.

Retail

The Dallas/Fort Worth retail market, which contains over 233 million sq. ft. of retail inventory, continues to grow with a demand of 1.4 million sq. ft. of positive absorption reported for the first quarter. The positive net absorption moved the occupancy rate, which remained flat at a healthy 91.1%. Overall asking lease rates increased by five cents to $14.11 per sq. ft. from the previous quarter.

Source: CB Richard Ellis

Document

Commercial Real Estate 2007 Q2 (PDF)