Diversity Could Aid SoCal Office Recovery
NOI Strategies News Alert
By Bob Howard
... The diversity of Southern California's economy could help its office market revive sooner than the office markets in some parts of the country, but recovery is still a long way off, and certain elements must fall into place before the office market enjoys any relief, according to a forecast. The new outlook from the USC Lusk Center Casden Forecast states that Southern California's office markets "are likely to face significant challenges over the next two years" despite the prospects for an earlier recovery than some parts of the nation. Office market fundamentals throughout Southern California are expected to remain weak due to high unemployment, the Casden Forecast points out, citing vacancy rates that have risen in the last year to more than 15% in Los Angeles, 19% in Orange County and 22% in the Inland Empire. Asking rents have declined year-over-year in Los Angeles and Orange County by more than 10%, and increased by just under 2% in the Inland Empire, according to the forecast, which uses data supplied by Grubb & Ellis for its statistical comparisons...