Real Estate

Industrial

The last quarter of 2006 ended on an impressive note for the industrial market with the last three months resulting in the strongest positive net absorption in over five years with 3.9 million sq. ft. recorded. This strong demand for industrial space has pushed the overall vacancy rate to 9.7%.

Industrial Overview	Change from last Year	Change from Last Quarter
Vacancy	Down	Up
Lease Rates	Up	Up
Net Absorbtion*	Up	Up
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 absorption in 2006. Nearly 1.5 million sq. ft. of space was absorbed in the last quarter, bringing the total over the previous two years to a total of over 8 million sq. ft. As a result, the current Dallas/Fort Worth office vacancy rate of 21.17% is one of the lowest rates in the past five years. With last quarter 2006 absorption surpassing the recorded absorption of one year ago, there are positive indicators that the recovery will 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	Up

* 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 200 million sq. ft. of retail inventory, continues to grow with a demand of 30,944 sq. ft. of positive absorption reported for the second quarter, bringing the total for the year to just over 2.3 million sq. ft. The positive net absorption was not enough to move the occupancy rate, which remained flat at a healthy 90.8%. Overall asking lease rates increased by sixty seven cents to $14.10 per sq. ft. from the previous quarter.

Source: CB Richard Ellis