Well, the beat continues!!! Depending on what you read and who you speak with, the “crystal ball” is getting a little clearer in Southern New England…I think!

My main premise earlier this year was essentially this…The markets aren’t overbuilt…Whether we go deep into the great abyss or only feel some significant short term pain will all depend on if:

1) We see positive economic signs of recovery by Q3 09.

2) If we stop seeing employment deterioration by the end of Q3 or Q4 09.

3) If we see employment growth by early-mid 2010.

Well, I think we are starting to see #1 happening and I think we will see #2 happen as well (I know that not everyone agrees with that opinion). #3? Well time will tell. Personally, I think we are looking at a big-time “V” recovery and that will mean employment gains sooner rather than later.

What does this mean for Southern New England if I am right…a much less significant decline than everyone expected in the user-driven industrial real estate market and a somewhat quicker recovery as well. I still believe that the “Dooms Day” projections will prove to be inaccurate and overstated.

Does that mean that we are out of the woods and that landlords should be stand firm on their rates and start partying in the streets? Not at all. It’s still a buyers (tenants) market out there and, at least in the short term, landlords need to retain tenants. But at ALL costs??? I don’t think so.

The crystal ball is clearing a bit and I think that light you are seeing in early/mid 2010 is the sun (not a train).

Keep smiling!

Mark Duclos