now have the capacity to be a station in a videoconference allowing full video and audioand data communication between multiple parties. Those same devices, or others no less portable and only slightly larger, provide all the informational files, research capacity andother production applications needed to be a fully participating collaborator in almost anyoffice function without being on the same continent as the rest of the participates.I have to believe this combination of technology and cultural changes will have a profound impact upon the demand for office space.In a similar vein, there are many industrial processes that do not require a centralizedlocation to work together to build or assemble a tangible product. Not all industrialoutput, probably not even a large minority of such outputs, will lend themselves todecentralized manufacture and assembly. However, enough of them will to have animpact on the demand for industrial real estate.Retail is, perhaps the most interesting. I suspect that most retail trade will soon beconducted via the web. Increasingly, retail trade that does not involve products that mustfirst "romance or "seduce" the buyer are easily sold over the net. That is why internetretail sales are growing so much faster than traditional retail that, in some instances, isshrinking.If the "romance" theory is true, you should expect for there to be a dramatic reduction indemand for traditional retail space. Any such reduction in demand will strand enormousamounts of capital in unusable shopping centers and malls all across the country. Indeed,all across the world. Only the shopping that will still retain a primarily "social"experience will provide for healthy, traditional retail trade. High end fashion, someautomobiles, high end jewelry, certain electronics, specialized recreational destinationcenters, think Bass Pro Shops, that sort of thing will still be enough of a social experienceand enough of a romantic experience to justify a traditional, sort of, store.Again, there is a generational, not gender, divide on this. Older, traditional shoppersenjoy the experience and will be uncomfortable and reluctant to let the mall go. Younger consumers will not be attracted to the traditional shopping experience unless there issomething perceived as very special to be gained from the effort. This divide will resultin an ever decreasing demand for traditional retail space as more and more shopping goeson the web and away from the store.So, assuming we do someday emerge from the recession that is now, officially, over,what happens to space demand? My belief is that the best case will result in flat demand.This will not be so bad for the existing industry but will put a severe damper on demandfor new development and construction. However, the negative impacts on demand for space could be far more pronounced. If so, we could find ourselves with an enormousamount of capital stranded in the form of buildings for which no one has any use.Should the demand decline steeply due to technology and changing attitudes toward theshopping experience, this is, of course, really bad news for owners of existing centers.